Nairobi – Equity Group Holdings Plc has reported a record financial performance for 2025, posting a 55 percent increase in profit after tax to KSh75.5 billion, up from KSh48.8 billion, driven by strong regional growth and a deepening shift to digital banking.
The balance sheet expanded by 9% to KSh1.97 trillion (FY2024: KSh1.8 trillion), with customer deposits rising 4% to KSh1.46 trillion (FY2024: KSh1.40 trillion) and net loans increasing 8% to KSh882.5 billion (FY2024: KSh819.2 billion). The Group closed the year with 22.4 million customer accounts, supported by a strong regional distribution and digital ecosystem.
Strong revenue performance saw net interest income grow 17% to KSh 126.9billion, non‑funded income rise 7% to Ksh90.8 billion, and total income increase by 12% to Kshs 217.7 billion (FY2024: KSh193.8 billion). Operational efficiency improved significantly, with the cost‑to‑income ratio falling to 51.0% from 58.2%, driven by continued migration to self‑service channels, productivity gains, and tighter cost discipline supported by Group-wide shared services and digital infrastructure.
Over 98% of customer transactions were conducted outside branches, with 88.4% processed through digital channels, reflecting continued demand for digital services with increased investment in customer‑centric digital infrastructure. Loan loss provisions declined 28%, while NPL coverage strengthened to 67.7%, supported by a reduced cost of risk of 1.7%.
The lender’s results mark one of the strongest performances in Kenya’s banking sector, underpinned by improved efficiency, diversified income streams, and growing contributions from its subsidiaries across Africa.
Group Managing Director and CEO Dr James Mwangi said the results reflect the success of the bank’s long-term transformation strategy.
“The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group,” Mwangi said. “We delivered strong profit growth by expanding and deepening our income streams, improving efficiency across the franchise, and strengthening the quality of our balance sheet.”
He added that regional subsidiaries are now a key pillar of the business. “Importantly, our regional subsidiaries now contribute about half of our banking profitability, demonstrating the value of our pan-African footprint and the resilience that comes from diversification,” he said.
Digital Banking Drives Efficiency
Equity’s performance was supported by a rapid shift to digital banking, with more than 98 percent of customer transactions conducted outside physical branches.
The Group said 88.4 percent of all transactions are now processed through digital channels, reflecting growing customer preference for self-service platforms. This transition helped push the bank’s cost-to-income ratio down to 51 percent from 58.2 percent the previous year.
Total income rose 12 percent to KSh217.7 billion, supported by a 17 percent growth in net interest income and a 7 percent increase in non-funded income.
Regional Growth Powers Profits
Subsidiaries across East and Central Africa posted strong growth, reinforcing Equity’s position as a pan-African lender.
Profit in the Democratic Republic of Congo rose by 58 percent, while Uganda recorded a sharp 500 percent increase. Tanzania and Rwanda also posted solid gains, supported by expansion in lending and customer growth.
Overall, regional operations contributed about half of the Group’s total banking profits.
Dividend Boost for Shareholders
On the back of the strong performance, the board proposed a dividend payout of KSh5.75 per share, up from KSh4.25, bringing total dividends to KSh21.7 billion.
Insurance and Social Impact Expand
The Group’s insurance business also recorded rapid growth, with gross written premiums rising 75 percent and profit before tax increasing by 36 percent.
Beyond financial performance, Equity continued to scale its social impact initiatives through the Equity Group Foundation.
The foundation supported over 1,100 scholars with global university scholarships, trained nearly one million entrepreneurs, and enabled more than 500,000 small businesses to access credit worth KSh401 billion.
It also expanded healthcare access through the Equity Afya network, which now serves millions of patients across the region.
Focus on Technology and Future Growth
Mwangi said the Group will continue investing in digital and artificial intelligence capabilities as part of its long-term strategy.
“Our focus is to build a future-ready institution that is scalable, secure and impact-led,” he said. “Through our Africa Recovery and Resilience Plan, we are investing in next-generation digital and AI-enabled capabilities that enhance customer experience, strengthen risk management and lower the cost to serve.”
The bank aims to expand to 15 countries and reach 100 million customers by 2030, positioning itself as a “transformation finance institution” focused on driving inclusive growth across Africa.