Equity Group Holdings posted a record profit after tax of KSh75.5 billion ($580 million) for 2025, up 55% from the prior year, driven by revenue growth, improved efficiency and rising contributions from regional subsidiaries. Announced on 18 March, this performance highlights the Nairobi-listed lender's diversification, with subsidiaries outside Kenya now contributing roughly half of total banking profitability.
REGIONAL GROWTH AND STRONG PERFORMANCE
The group's results reflect robust expansion beyond Kenya. Subsidiaries outside Kenya now account for roughly half of the group's banking profitability. Kenya remains the biggest engine, with Equity Bank Kenya posting a 63% jump in profit after tax to Sh39.2 billion. Beyond Kenya, results were strong across several markets, including the Democratic Republic of Congo, Uganda, Rwanda, and Tanzania.
Equity's results were powered by robust metrics across the board. Net interest income climbed 17% to Sh126.9 billion, while non-funded income rose 7% to Sh90.8 billion, pushing total income up 12% to Sh217.7 billion. The cost-to-income ratio improved to 51.0% from 58.2%, and more than 98% of customer transactions now occur outside branches, and 88.4% via digital channels.
Credit quality strengthened significantly, as loan loss provisions dropped 28% to Sh14.5 billion from Sh20.2 billion the prior year. Non-performing loan coverage rose to 67.7%, and the cost of risk fell to 1.7%.
Chief Executive James Mwangi, set to receive more than KSh734 million ($5.7 million) in dividends, said the 2025 performance reflected "the success of our deliberate transformation into a diversified, regional financial services group". The group's banking subsidiaries operate in six markets: Kenya, Uganda, Tanzania, Rwanda, Democratic Republic of Congo, and South Sudan. The balance sheet expanded 9% to Sh1.97 trillion, with customer deposits up 4% to Sh1.46 trillion and net loans growing 8% to Sh882.5 billion. The group ended the year with 22.4 million customer accounts.
The board proposed a dividend of Sh5.75 per share, lifting the total payout to Sh21.7 billion, a 35.3% increase from the Sh16 billion distributed the previous year. Shareholders will vote on the final payout at the annual general meeting. Equity's staff will also share in the results, with employees expected to receive close to Sh700 million through the bank's employee share ownership plan.
BROAD-BASED FINANCIAL GAINS
Equity Insurance Group reported a 75% increase in gross written premiums to KSh9.17 billion, with profit before tax up 36% to KSh2.0 billion.
REGIONAL BANKING SHIFT
Among the regional subsidiaries, profit after tax rose 58% to KSh24.7 billion in the DRC and 125% to KSh2.7 billion in Tanzania, while Rwanda reported KSh5.4 billion. Regional subsidiaries contributed 51% of banking profit before tax and 48% of banking profit after tax.
Mwangi said the group aims "to operate in 15 countries and serve 100 million customers by 2030".