Equity Group Profit Jumps 24% to KSh19.1bn in Q1

Equity Group Holdings posted a 24 percent rise in first-quarter profit after tax to KSh19.1 billion, the Nairobi-listed lender said Tuesday, as improving asset quality and a deepening digital shift drove one of its strongest quarterly performances in recent years.

The group’s balance sheet expanded 16 percent to KSh2.04 trillion, with customer deposits up 13 percent and net loans growing 9 percent. Equity’s customer base stood at 22.7 million.

The results were underpinned by a sharp improvement in loan quality. Non-performing loans fell from 14 percent to 10 percent year-on-year, NPL coverage rose to 72 percent from 67 percent, and loan loss provisions dropped 18 percent, gains the group attributed to tighter underwriting, enhanced risk analytics, and a more diversified lending portfolio.

Operational efficiency also improved, with the cost-to-income ratio declining to 50.6 percent from 54.2 percent. Return on equity stood at 22.6 percent and return on assets at 3.9 percent.

Digital adoption continued to reshape the group’s operating model. Nearly all transactions, 98.3 percent, were conducted outside physical branches, with 89.5 percent processed through digital channels.

Group Managing Director and CEO James Mwangi said the results reflected Equity’s deliberate push toward becoming a technology-led financial services institution. “We are building a future-ready institution, scalable, secure, and impact-led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” he said.

“As we progress toward our 2030 ambitions, we are evolving beyond traditional banking into a Transformation Finance Institution that mobilizes capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa.” he added.

Regional subsidiaries reached a milestone in the quarter, contributing 50 percent of group banking profitability and 52 percent of total banking assets. EquityBCDC posted a 32 percent profit increase to KSh5 billion, Equity Bank Rwanda grew 36 percent, and Equity Bank Tanzania recorded 150 percent profit growth. Equity Bank Kenya, the group’s largest unit, posted a 21 percent rise in profit after tax to KSh10.3 billion and disbursed 36.2 percent of all MSME loans in Kenya between January and March, against a national MSME lending pool of KSh101 billion.

The group’s insurance business also gained ground, with premiums and profits rising sharply during the period.

Equity Group Foundation extended its social programmes during the quarter, training over one million entrepreneurs, facilitating access to more than KSh416 billion in credit for MSMEs, and supporting 12,844 active scholars. Its healthcare arm, Equity Afya, now operates 154 medical centres with over 4.9 million cumulative patient visits. More than 600,000 young people have been trained in AI, machine learning, and data analytics through foundation partnerships.

Looking ahead, Equity said it remains on course for its 2030 strategy, which targets a presence in 15 countries, a customer base of 100 million, and the deployment of next-generation AI-enabled systems across its operations.

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