Sh75.5 Billion: Equity Delivers Kenya’s Biggest Ever Corporate Profit

By Staff Writer

Equity Group has posted the highest profit in Kenya’s corporate history, reporting a 55 per cent jump in net earnings to Sh75.5 billion, driven by strong regional growth, digital expansion and improved efficiency.

The Group’s balance sheet grew nine per cent to Sh1.97 trillion, with customer deposits rising to Sh1.46 trillion and net loans increasing to Sh882.5 billion, as its customer base expanded to 22.4 million.

Total income rose 12 per cent to Sh217.7 billion, supported by a 17 per cent increase in net interest income to Sh126.9 billion and a seven per cent rise in non-funded income to Sh90.8 billion.

Operational efficiency improved significantly, with the cost-to-income ratio declining to 51 per cent from 58.2 per cent, as digital adoption surged and over 98 per cent of transactions shifted outside branches.

“This performance reflects the success of our deliberate transformation into a diversified, regional financial services group,” said Equity Group Managing Director and CEO Dr James Mwangi.

He said the bank delivered strong profit growth by expanding and deepening its income streams, improving efficiency across the franchise, and strengthening the quality of the balance sheet.

Equity Bank Kenya recorded a 63 per cent jump in profit to Sh39.2 billion, while regional subsidiaries delivered 53 per cent growth to Sh36.3 billion, with strong gains in DRC, Uganda and Tanzania.

Regional operations now contribute about half of Group profitability, with subsidiaries accounting for 51 per cent of banking profit before tax and 48 per cent after tax, underscoring its pan-African growth strategy.

Loan growth remained strong across markets, expanding 17 per cent in DRC, 22 per cent in Rwanda and 61 per cent in Tanzania, while improved asset quality saw loan loss provisions decline by 28 per cent.

The Group strengthened its risk position, with non-performing loan coverage rising to 67.7 per cent and cost of risk easing to 1.7 per cent, reflecting prudent credit management.

Shareholders are set to benefit from a proposed dividend of Sh5.75 per share, translating to a payout of Sh21.7 billion, representing a 35.3 per cent increase from the previous year.

Equity Insurance Group sustained rapid growth, with gross written premiums rising 75 per cent to Sh9.17 billion, driving a 36 per cent increase in profit before tax and strong expansion across its subsidiaries.

The lender also scaled its social impact investments, committing about Sh99.5 billion to education, healthcare, agriculture, clean energy and SME financing initiatives across Africa during the year.

Its foundation supported over 1,115 scholars globally, enabled more than 500,000 MSMEs to access Sh401 billion in credit, and reached millions through healthcare, agriculture and clean energy programmes.

The Group said it will continue executing its 2030 strategy, targeting expansion to 15 countries and 100 million customers, supported by digital transformation, AI integration and blended finance partnerships.