Equity Bank Q1 Profit Dips 2% to KSh14.8B

Equity Bank posts KSh14.8B Q1 2025 profit, down 2% on reforms. Growth in DRC, Uganda offsets fraud fallout. CEO Mwangi vows tech-led discipline.

Equity Group Holdings, East Africa’s banking titan, reported a KSh14.8 billion ($114.7M) net profit for Q1 2025—down 2% from KSh15.1 billion ($117M) a year earlier.

“We anticipated a challenging quarter due to internal reforms and regional macroeconomic shocks,” said Dr. James Mwangi, Group CEO. “Still, our fundamentals remain strong.”

🔍 Internal Shake-Up Impacts Bottom Line

This is Equity’s first quarterly profit dip in two years, coming in the wake of a sweeping anti-fraud cleanup. In April, the bank terminated 1,200+ employees over a KSh1.5B ($11.6M) M-Pesa and payroll fraud.

Analysts say the mass firings affected operational efficiency but were necessary.

Related: Why Equity Fired 200+ in Payroll Scandal

💹 Deposits Up, DRC & Uganda Drive Growth

Despite lower profits, Equity’s total assets rose 4% to KSh1.75 trillion ($13.6B) and customer deposits increased by 7% to KSh1.32 trillion ($10.3B).

Growth in Uganda and Democratic Republic of Congo (DRC) helped offset muted domestic performance.

“Our subsidiaries contributed 45% of Group PBT,” said Stanley Muchiri, Equity’s Group CFO.

🧾 NPL Pressures & Rising Compliance Costs

Equity’s cost-to-income ratio edged up to 51.2%, reflecting:

• Inflationary pressures
• Investment in cybersecurity and compliance
• Fraud monitoring infrastructure

The non-performing loan (NPL) ratio remained elevated at 9.1%, with lingering risks in SME and agriculture lending.

“We aim to cut NPLs below 7% via tighter credit screening,” added Muchiri.

📈 Q1 2025: Key Metrics at a Glance

🔮 Outlook: Growth Through Governance

Mwangi assured investors that Equity Bank is prioritizing digital transformation, green finance, and risk control—especially in Rwanda, Tanzania, South Sudan, and DRC.

“We’re building a future-facing, compliant institution,” said Mwangi. “Discipline comes first—profitability follows.”