Equity Group posts record FY2025 profit amid strong regional and digital growth

Equity Group Holdings Plc reported record financial results for the 2025 fiscal year, marking a historic milestone in Kenya’s corporate sector.

The Group posted a 55% increase in Profit After Tax (PAT) to KSh75.5 billion, up from Sh48.8 billion in FY2024, reflecting robust revenue growth, enhanced efficiency, and strong regional contributions.

The Group’s balance sheet expanded by 9% to Sh1.97 trillion, with customer deposits rising 4% to Sh1.46 trillion and net loans increasing 8% to Sh882.5 billion.

Equity closed the year with 22.4 million customer accounts, supported by an extensive regional distribution network and a growing digital ecosystem.

Net interest income rose 17% to Sh126.9 billion, while non-funded income increased 7% to Sh90.8 billion, driving total income to Sh217.7 billion, up from Sh193.8 billion.

The Group achieved a cost-to-income ratio of 51%, down from 58.2%, thanks to migration to self-service channels, productivity gains, and tighter cost discipline.

Notably, over 98% of customer transactions were conducted outside branches, with 88.4% processed digitally.

Loan loss provisions fell 28%, with non-performing loan (NPL) coverage strengthening to 67.7% and the cost of risk reduced to 1.7%.

“The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group,” said Dr. James Mwangi, Equity Group CEO.

“We delivered strong profit growth by expanding and deepening our income streams, improving efficiency, and strengthening our balance sheet quality. Our regional subsidiaries now contribute about half of our banking profitability, demonstrating the resilience from diversification.”

Equity’s Board of Directors recommended a dividend of Sh5.75 per share, up from Sh4.25, totaling Sh21.7 billion, a 35.3% increase.

Equity Bank Kenya Limited (EBKL) posted a 63% rise in PAT to Sh39.2 billion, driven by a 28% increase in net interest income and a 37% reduction in interest expense. Shareholders’ funds grew 11% to Sh136.2 billion, with returns on assets and equity improving to 3.9% and 26.8%, respectively. EBKL was recognized at the Kenya Bankers Association Sustainable Finance Initiative (KBA SFI) Awards as the Best Bank for MSME Financing, accounting for 45% of all banks’ SME lending.

Equity’s regional operations contributed nearly half of the Group’s profits. Highlights include:
• DR Congo: PAT up 58% to Sh24.7 billion, with 17% loan growth.
• Uganda: PAT surged 500% to Sh3.6 billion.
• Rwanda: PAT Sh5.4 billion; total assets up 5%, loan book up 22%.
• Tanzania: PAT rose 125% to Sh2.7 billion, shareholders’ funds up 75%.

Overall, subsidiaries accounted for 51% of banking profit before tax and 48% after tax, underscoring Equity’s emergence as a pan-African financial powerhouse.

Equity Insurance Group posted strong growth with gross written premiums rising 75% to Sh9.17 billion, Profit Before Tax up 36% to Sh2 billion, and insurance revenue surging 150% to Sh3.57 billion. Key achievements include:
• Equity Life Assurance: PBT Sh1.77 billion; 6.9 million customers.
• Equity General Insurance: Sh1.79 billion in premiums and Sh199 million PBT in first year.
• Equity Health Insurance: Sh20 million premiums, Sh40 million PBT in first 4 months.

Through the Equity Group Foundation (EGF), the Group trained nearly one million entrepreneurs, supported over 500,000 MSMEs with Sh401 billion in credit, empowered 3.8 million farmers, distributed over half a million clean energy solutions, and planted 44.6 million trees.

The Foundation’s technology programs trained 600,000 youth in AI, machine learning, and data analytics.

Equity continues to invest in next-generation digital and AI-enabled systems, aiming to operate in 15 countries and serve 100 million customers by 2030 under its Africa Recovery and Resilience Plan (ARRP).

The strategy positions the Group as a Transformation Finance Institution, mobilizing capital, enabling cross-border trade, and driving inclusive, sustainable growth across Africa.

“Our focus is to build a future-ready institution that is scalable, secure, and impact-led. We are evolving beyond traditional banking to mobilize capital, connect ecosystems, and accelerate inclusive prosperity across Africa,” Dr. Mwangi said.

Equity was named Best Regional Bank in East Africa and retained its status as Kenya’s most valuable brand in 2025, reaffirming its leadership in regional banking, financial inclusion, and socio-economic transformation.