Equity posts record Sh75.5bn profit as earnings jump 55%

Equity managing director and CEO James Mwangi/HANDOUT

Equity Group Holdings Plc has reported a historic performance for the financial year 2025, posting a 55% growth in profit after tax (PAT) to Sh75.5 billion, up from Sh48.8 billion in 2024.

The results underscore the success of the Group’s strategic transformation, regional expansion, and diversified revenue streams.

The Group’s board has proposed a dividend payout of Sh21.7 billion, translating to Sh5.75 per share. This represents a 35.3% increase from last year’s Sh16 billion, or Sh4.25 per share.

Equity Bank Kenya Limited (EBKL) delivered a 63% rise in PAT to Sh39.2 billion, up from Sh24.1 billion in 2024.

The performance was driven by a 28% increase in net interest income and a 37% reduction in interest expense.

Shareholders’ funds grew 11% to Sh136.2 billion, while returns on assets and equity strengthened to 3.9% from 2.4% and 26.8% from 20.2%, respectively.

EBKL’s leadership in supporting enterprise growth was recognised at the Kenya Bankers Association Sustainable Finance Initiative (KBA SFI) Awards, where it was named Best Bank for MSME Financing, contributing 45% of all bank lending to small and medium enterprises.

Regional subsidiaries contributed significantly to the Group’s profitability. In the Democratic Republic of Congo (DRC), profit after tax rose 58% to Sh24.7 billion, supported by 17% loan growth. Uganda’s PAT jumped 500% to Sh3.6 billion, Rwanda posted Sh5.4 billion with loan growth of 22%, and Tanzania recorded a 125% increase to Sh2.7 billion.

Overall, regional subsidiaries accounted for about half of banking profitability, demonstrating the resilience and value of Equity’s pan-African footprint.

Equity Insurance Group also recorded strong growth, with written gross premiums rising 75% to Sh9.17 billion. Profit before tax increased 36% to Sh2.0 billion, while insurance revenue surged 150% to Sh3.57 billion.

Equity Life Assurance delivered a profit before tax of Sh1.77 billion, serving 6.9 million customers with 19.2 million policies issued since inception.

Equity General Insurance reported Sh1.79 billion in gross written premiums and Sh199 million in profit before tax in its first year, while Equity Health Insurance posted Sh20 million in gross written premiums and Sh40 million in profit before tax in just four months of operations.

The Group’s total income rose 12% to Sh217.7 billion, with net interest income growing 17% to Sh126.9 billion and non-funded income increasing 7% to KSh90.8 billion.

Operational efficiency improved, as the cost-to-income ratio declined to 51% from 58.2%, supported by digital migration, productivity gains, and shared services.

Over 98% of customer transactions occurred outside branches, with 88.4% processed digitally, reflecting continued demand for technology-driven solutions. Loan loss provisions fell 28%, and non-performing loan coverage strengthened to 67.7%, supported by a reduced cost of risk of 1.7%.

Commenting on the results, Equity Group CEO Dr. James Mwangi said, “The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group. We delivered strong profit growth by expanding and deepening our income streams, improving efficiency across the franchise, and strengthening the quality of our balance sheet. Importantly, our regional subsidiaries now contribute about half of our banking profitability, demonstrating the value of our pan-African footprint and the resilience that comes from diversification.”

The Equity Group Foundation continues to drive social impact across Africa. In FY2025, it supported 1,115 scholars with global university scholarships, trained nearly one million entrepreneurs, enabled over 500,000 MSMEs to access KSh401 billion in credit, and empowered 3.8 million farmers with climate-smart agriculture skills.

The Foundation also distributed over half a million clean energy solutions, planted 44.6 million trees, and provided quality healthcare to 4.6 million patients through the Equity Afya network.

Looking ahead, Mwangi said the Group will continue executing its 2030 strategy, anchored in the Africa Recovery and Resilience Plan.

“Our focus is to build a future-ready institution that is scalable, secure and impact-led. Through our Africa Recovery and Resilience Plan, we are investing in next-generation digital and AI-enabled capabilities that enhance customer experience, strengthen risk management and lower the cost-to-serve, while extending access to affordable credit, insurance and investment solutions,” he said.

Equity Bank’s strong FY2025 performance reaffirms its leadership in East Africa, with a robust regional presence, digital innovation, and a continued focus on financial inclusion and socio-economic transformation.