Equity Group Holdings Plc has reported a strong financial performance for the first quarter of 2026, with Profit After Tax rising by 24 per cent to Sh19.1 billion, driven by growth in customer deposits, digital banking, and regional operations.
In its Q1 financial results released on Tuesday, the lender said its balance sheet expanded by 16 per cent to Sh2.04 trillion, supported by a 13 per cent increase in customer deposits and a 9 per cent rise in net loans, reflecting sustained customer confidence and economic activity across its markets.
The Group attributed the growth to its expanding customer base, which now stands at 22.7 million customers, supported by an extensive distribution network of 86,910 agency outlets and 1.4 million merchants across the region.
The lender said its first-quarter performance reflects a multi-year transformation strategy focused on resilience, diversification, and technology, noting that it has strengthened its regional footprint and invested heavily in digital and artificial intelligence (AI)-enabled systems.
Operational efficiency also improved during the period, with the cost-to-income ratio declining to 50.6 per cent from 54.2 per cent, largely due to productivity gains, shared services, and increased migration of customers to digital channels.
The Group maintained strong returns, posting a Return on Assets (ROA) of 3.9 per cent and Return on Equity (ROE) of 22.6 per cent.
Equity Group Managing Director and Chief Executive Officer, James Mwangi, said the performance demonstrates the success of the institution’s transformation agenda.
“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology-led financial services Group. We are building a future-ready institution; scalable, secure, and impact-led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” said Mwangi.
He added that the Group is positioning itself beyond conventional banking.
“As we progress toward our 2030 ambitions, we are evolving beyond traditional banking into a Transformation Finance Institution that mobilizes capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa,” he stated.
The bank noted that customer behaviour continues to shift towards digital platforms, with 98.3 per cent of all transactions now taking place outside physical branches, while 89.5 per cent are processed through digital channels.
The Group said it has also strengthened its technology systems and staff capabilities, revealing that 80 per cent of employees have completed business-focused generative AI training, accounting for over 20,000 hours of instruction.
On asset quality, Equity reported improved risk indicators, with non-performing loans (NPLs) declining from 14 per cent to 10 per cent year-on-year. NPL coverage also rose to 72 per cent from 67 per cent, while loan loss provisions dropped by 18 per cent.
Regional subsidiaries continued to post strong growth and now account for 50 per cent of the Group’s banking profitability and 52 per cent of total banking assets.
Equity Bank Kenya posted a 21 per cent increase in Profit After Tax to Sh10.3 billion, up from Sh8.5 billion during a similar period last year, while maintaining leadership in Micro, Small and Medium Enterprises (MSME) financing.
The Group said it disbursed 36.2 per cent of the Sh101 billion MSME loans issued in Kenya between January and March 2026.
Its regional subsidiaries also recorded strong performance, with Equity BCDC in the Democratic Republic of Congo posting a 32 per cent increase in profit after tax to Sh5 billion. Equity Rwanda recorded a 36 per cent rise to Sh1.5 billion, while Equity Tanzania reported a 150 per cent jump to Sh1.04 billion.
Meanwhile, Equity Insurance Group also posted strong results, with gross written premiums increasing by 30 per cent to Sh4.5 billion and profit before tax rising by 53 per cent to Sh640 million.
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