Equity Group’s H1 2025 profit hits KSh 34.6B, fueled by Africa expansion, digital growth, and strategic investments in banking and insurance.

Equity Group Reports 17% Profit Growth as Transformation Pays Off

By Charles Wachira

Nairobi, 11 August 2025 — Equity Group Holdings Plc has recorded a strong 17% increase in profit after tax (PAT) to KSh 34.6 billion (approx. USD 260 million) for the six months ending June 2025, up from KSh 29.6 billion the previous year. This growth underscores the success of the Group’s ongoing transformation strategy amid a challenging operating environment across Africa.

Record Quarterly Performance and Regional Growth

Equity Group achieved its strongest quarterly profit before tax in Q2 2025, posting KSh 22.9 billion — well above the four-year quarterly average of KSh 14.8 billion. This robust performance reflects gains in key subsidiaries across East and Central Africa.

The Group’s regional operations continue to gain momentum, contributing nearly half of the Group’s deposits, loan book, and revenue:

• Kenya: Profit after tax surged 40% to KSh 19.5 billion.
• Tanzania: Profit soared 75% to KSh 1.1 billion.
• Uganda: Profit rose 40% to KSh 1.9 billion.
• Democratic Republic of Congo (DRC): Profit grew 22% to KSh 9.1 billion.
• Rwanda: Assets expanded 21% to KSh 130.1 billion.

This diversification strengthens the Group’s position as a regional banking leader, contributing 46% of profit before tax and 43% of profit after tax from subsidiaries outside Kenya.

Strategic Transformation and Digital Innovation

Equity Group’s transformation over the past four years is a comprehensive overhaul of its business model, culture, technology, and governance. The strategy is anchored in the Africa Recovery and Resilience Plan (ARRP), a continent-wide development framework championed by the Group to spur private-sector-led growth.

Key transformation pillars include:

• Governance and Leadership: Restructured to enhance transparency and competence.
• Technology: Deployment of scalable, next-generation digital platforms enabled by AI, machine learning, and data analytics.
• Customer-Centric Products: Tailored value propositions targeting specific market segments across industries and demographics.
• Culture: Fostering innovation, professionalism, and teamwork to attract skilled talent.

Equity’s move towards digital channels is evident: over 98% of transactions now happen outside branches, with 87.4% conducted via digital platforms, dramatically reducing operational costs.

Financial Highlights and Asset Growth

• Net Interest Income: Increased 9% despite an 18% drop in interest expenses.
• Loan Book: Expanded 4% to KSh 825.1 billion.
• Customer Deposits: Grew 2% to KSh 1.32 trillion.
• Total Assets: Rose 3% to KSh 1.8 trillion.
• Shareholders’ Funds: Surged 25%, highlighting a strengthened capital base.
• Earnings Per Share (EPS): Up 16% to KSh 8.8 from KSh 7.6.

The Group maintains a healthy loan-to-deposit ratio of 62.5%, supported by strong capital buffers and liquidity ratios, signaling room for further lending growth.

Recovery Across Core Markets

Kenya

Profit after tax jumped 40% to KSh 19.5 billion, driven by an 18% rise in net interest income and a 29% decline in interest expenses. Total equity climbed 22% to KSh 154.6 billion.

Tanzania

The fastest-growing subsidiary, profit soared 75% to KSh 1.1 billion, with loans advancing 19% to KSh 31.3 billion and shareholders’ funds up 67%.

Uganda

Profit grew 40% to KSh 1.9 billion, supported by 5% deposit growth and solid increases in cash balances and investment securities.

Democratic Republic of Congo (DRC)

Profit after tax increased 22% to KSh 9.1 billion, with a 13% growth in loans and advances to KSh 275.4 billion, funded by a reduction in cash holdings.

Rwanda

Total assets increased 21% to KSh 130.1 billion, fueled by 22% growth in deposits and 23% in loan book.

Diversification into Insurance and Non-Banking Services

Equity Group’s insurance arm has shown rapid progress:

• Life Insurance: Gross written premiums grew 58% to KSh 3.8 billion; profit before tax rose 20% to KSh 890 million.
• General Insurance: Achieved KSh 1.36 billion in gross written premiums within six months of launch.
• Health Insurance: Expanding rapidly with a growing customer base.

Non-banking businesses, including technology and insurance, have increased contributions to Group assets and profitability, with a return on equity of 42.4%—substantially higher than the Group average.

Social Impact and Sustainability

Under the Equity Group Foundation, the Group has invested over USD 715 million in social and sustainability programs focused on education, financial inclusion, health, and climate action.

Notable achievements include:

• Supporting over 29,500 university scholars globally through the Equity Leaders Program.
• Distributing 520,549 clean energy products and planting 36.4 million trees.
• Disbursing KSh 363 billion to over 350,000 micro, small, and medium enterprises (MSMEs).
• Providing healthcare services through 139 Equity Afia clinics with nearly 4 million patient visits.

Leadership Commentary

Dr. James Mwangi, Equity Group Managing Director and CEO, said:
“Our strategic transformation is yielding tangible results, strengthening our financial performance and expanding our footprint across Africa. We remain committed to driving socio-economic development through inclusive finance and innovative solutions.”

Conclusion

Equity Group’s strong half-year results and strategic initiatives position it well for continued growth and regional leadership. With robust digital capabilities, diversified revenue streams, and a clear social impact agenda, the Group exemplifies the evolving face of African banking.