Equity Group Holdings has posted a strong first-quarter performance for 2026, with net profit rising 24% to Sh19.1 billion.
The lender, whose total assets have crossed the Sh2 trillion mark, says the growth was supported by growth in regional subsidiaries, stronger asset quality and increased use of digital banking channels.
According to results unveiled on Tuesday at an investor briefing, the lender’s balance sheet expanded by 16 per cent to Sh2.04 trillion, driven by a 13 per cent rise in customer deposits and a nine per cent increase in net loans.
"This highlights continued customer confidence and economic activity across its markets," Equity Bank Holdings Group MD, James Mwangi, said.
The bank said its customer base grew to 22.7 million, supported by 86,910 agency outlets and 1.4 million merchants across the region.
"The results reflect the bank’s long-term shift into a technology-driven regional financial services group, with a growing focus on digital banking, efficiency and diversification."
The Group’s cost-to-income ratio improved to 50.6 per cent from 54.2 per cent, helped by increased use of digital channels and operational efficiencies.
Return on assets stood at 3.9 per cent, while return on equity was 22.6 per cent, underlining strong profitability and efficient use of capital.
Mwangi said the performance showed the success of Equity’s transformation strategy into a diversified regional financial services business powered by technology.
He added that the bank is investing heavily in digital systems, staff training and artificial intelligence to support future growth and improve customer service.
Digital banking continued to dominate transactions during the quarter, with 98.3 per cent of all transactions conducted outside branches and 89.5 per cent processed through digital platforms.
Equity also intensified staff training in artificial intelligence and digital skills.
About 80 per cent of employees completed a business-focused generative AI course, accounting for more than 20,000 learning hours.
The bank’s asset quality also improved during the quarter.
Non-performing loans fell from fourteen per cent to ten per cent year-on-year, while non-performing loan coverage rose to 72 per cent from 67 per cent.
Loan loss provisions declined by 18 per cent as the quality of the loan book improved.
Regional subsidiaries continued to play a bigger role in earnings, contributing 50 per cent of the Group’s banking profits and fifty-two per cent of total banking assets.
Equity Bank Kenya posted a 21per cent rise in profit after tax to Sh10.3 billion.
The bank maintained its dominance in MSME lending, disbursing 36.2 per cent of the Sh101 billion loans advanced to small businesses in Kenya between January and March 2026.
EquityBCDC recorded a 32 per cent rise in profit to Sh5 billion, while Equity Bank Rwanda grew profit by 36 per cent to Sh1.5 billion.
Equity Bank Tanzania posted the fastest growth, with profit surging by 150 per cent to Sh1.04 billion.
The Group’s insurance business also continued to expand.
Through the Equity Group Foundation, the lender expanded its social impact programmes across Africa.
The foundation currently supports 12,844 scholars and secured 91 international university admissions worth more than $18.6 million during the quarter.
Under its enterprise development programmes, the foundation said it has trained more than one million entrepreneurs and facilitated access to over Sh416 billion in credit for micro, small and medium-sized enterprises.
In agriculture, the foundation is implementing the $25 million SASTAIN programme in partnership with Mastercard Foundation, targeting 60,000 smallholder farmers and agri-businesses in Tanzania and the Democratic Republic of the Congo.
