Equity Group Posts Sh48.8 Billion Profit

Equity Group Holdings has reported a 12 percent increase in profit after tax, reaching Sh48.8 billion for the financial year ending December 31, 2024, up from Sh43.7 billion the previous year.

The Group’s profit before tax rose by 17 percent to Sh60.7 billion, while earnings per share (EPS) increased by 11 percent to Sh12.3, reflecting its solid financial performance. Regional operations played a significant role, contributing 49 percent of total assets and 54 percent of profit before tax.

As part of its commitment to shareholders, Equity Group proposed a dividend of Sh4.25 per share, representing a payout ratio of 34.5 percent. This move underscores its consistent track record of delivering value to investors.

While announcing the results, Equity Group Holdings Managing Director James Mwangi attributed the bank’s resilience to its ability to navigate economic challenges.

“Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group’s liquidity and capital position remain strong, positioning us to better support our customers in the years ahead,” Mwangi said.

The Group’s total deposits grew to Sh1.4 trillion, with its customer base expanding to 21.6 million, demonstrating its widespread reach. Liquidity remained solid, with cash and cash equivalents rising by 19 percent to Sh345 billion, while investment securities increased to Sh512 billion, contributing to an overall liquidity ratio of 57 percent.

Equity’s focus on regional expansion and product diversification continues to drive its growth, with subsidiaries contributing 49 percent of total assets, 48 percent of total loans, and 54 percent of profit before tax. While the Kenyan unit remains a key player, it accounted for 46 percent of total revenue.

Equity Bank Rwanda saw revenue grow by 36 percent year-on-year, Tanzania by 20 percent, and the Democratic Republic of Congo (DRC) by nine percent. Profit after tax surged in Uganda by 186 percent, Tanzania by 107 percent, DRC by 29 percent, and Rwanda by 30 percent, signaling the increasing importance of regional operations.

In a move to expand its loan book, Equity Bank Kenya has cut its base lending rate three times in the past six months, responding to the country’s economic recovery. The lower interest rates are expected to reduce borrowing costs for businesses and increase household disposable income, boosting consumer spending.

The Group also recorded significant growth in digital transactions. The value of business processed through Equity Mobile increased by 67 percent year-on-year to Sh3.174 trillion, while transactions via Equity Online for business (EazzyBiz) grew by 21 percent to Sh3.841 trillion. Payments via the interoperable Pay With Equity (PWE) for merchants rose by 14 percent to Sh2.149 trillion, while ATM transactions increased by 21 percent to Sh481.4 billion.

“Equity Group remains committed to driving positive change. Our focus on financial inclusion, regional expansion, and sustainable growth will enable us to continue being a catalyst for economic empowerment and resilience across Africa,” Mwangi stated.