Dr James Mwangi, the Group Managing Director and CEO
HABARI DAILY I Kampala, Uganda I Equity Group Holdings Plc has delivered a historic financial performance for the 2025 financial year, posting a 55 percent jump in profit after tax to KSh75.5 billion, up from KSh48.8 billion in 2024, cementing its position as one of East Africa’s most dominant financial institutions.
The strong results, among the most impressive in Kenya’s corporate history, reflect the Group’s deliberate transformation into a diversified, technology-driven and regionally integrated financial services powerhouse.
The Group’s balance sheet expanded by 9 percent to KSh1.97 trillion, supported by steady growth in customer deposits to KSh1.46 trillion and an 8 percent rise in net loans to KSh882.5 billion. Equity closed the year with 22.4 million customer accounts, underpinned by an expansive regional presence and a rapidly growing digital ecosystem.
Revenue growth remained robust across all key segments. Net interest income rose 17 percent to KSh126.9 billion, while non-funded income increased by 7 percent to KSh90.8 billion. Overall, total income climbed 12 percent to KSh217.7 billion, reflecting both strong lending activity and diversified revenue streams.
Cost discipline paramount
James Mwangi, the Group Managing Director and CEO pointed out that the key highlight of the results was the Group’s significant improvement in operational efficiency. “The cost-to-income ratio dropped sharply to 51 percent from 58.2 percent, driven by cost discipline, productivity gains and a major shift toward digital banking. More than 98 percent of customer transactions were conducted outside physical branches, with 88.4 percent processed through digital channels,” he said.
He added that asset quality also improved, with loan loss provisions declining by 28 percent and non-performing loan coverage strengthening to 67.7 percent. The cost of risk reduced to 1.7 percent, pointing to prudent risk management practices.
Mwangi further noted that the results demonstrate the success of Equity’s long-term transformation strategy.
“The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group. 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 said.
He added that regional subsidiaries are now central to the Group’s success, contributing nearly half of total profitability.
“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,” Mwangi noted.
Regional operations form main pillar
Indeed, Equity’s regional operations delivered outstanding growth. The Democratic Republic of Congo recorded a 58 percent rise in profit after tax to KSh24.7 billion, while Uganda posted an extraordinary 500 percent increase to KSh3.6 billion. Rwanda and Tanzania also reported strong gains, with Tanzania’s profit rising 125 percent.
Within Kenya, Equity Bank Kenya Limited posted a 63 percent surge in profit after tax to KSh39.2 billion, supported by strong growth in interest income and reduced funding costs. The bank also strengthened its returns, with return on equity rising to 26.8 percent.
Shareholders are set to benefit from the strong performance, with directors recommending a dividend of KSh5.75 per share, representing a 35.3 percent increase and a total payout of KSh21.7 billion.
Beyond banking, the Group’s insurance business recorded rapid expansion, with gross written premiums rising 75 percent to KSh9.17 billion. The segment’s profitability also grew strongly, supported by new life, general and health insurance offerings.
The Group’s success is also tied to favourable macroeconomic conditions across Africa, where several economies, including Uganda and Rwanda, continue to post strong growth. High commodity prices and easing inflation have further supported economic activity in the region.
Social impact at its highest
Through Equity Group Foundation, the lender is also deepening its social impact, supporting education, entrepreneurship, healthcare and climate resilience initiatives that have reached millions across the continent.
Equity Bank has also been recognised as the Best Regional Bank in East Africa and retained its position as Kenya’s most valuable brand in 2025, reinforcing its leadership in financial inclusion and innovation.
Looking ahead, Mwangi said the Group will continue executing its ambitious 2030 strategy under the Africa Recovery and Resilience Plan.
“Our focus is to build a future-ready institution that is scalable, secure and impact-led… 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 said.
With strong earnings momentum, growing regional influence and continued investment in digital transformation, Equity Group appears firmly on track to sustain its upward trajectory and reshape the future of banking in Africa.
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