By KPC Business Reporter
Equity Group Holdings Plc has reported the strongest financial results in Kenya’s corporate history, posting a 55% surge in profit after tax to KSh75.5 billion for the year ended December 2025.
The milestone underscores the success of the Group’s strategic transformation into a diversified, pan-African financial services powerhouse.
The Board has proposed a dividend payout of KSh21.7 billion, translating to KSh5.75 per share — a 35.3% increase from the previous year’s KSh16 billion (KSh4.25 per share).
The announcement cements Equity’s reputation as one of the region’s most profitable and shareholder‑friendly institutions.
The Bank delivered a 63% jump in profit after tax to KSh39.2 billion, driven by a 28% rise in net interest income and a 37% reduction in interest expense.
Regional subsidiaries contributed nearly half of Group profitability, with standout performances in the Democratic Republic of Congo (profit up 58% to KSh24.7 billion), Uganda (profit up 500% to KSh3.6 billion), Rwanda (profit up 22% to KSh5.4 billion), and Tanzania (profit up 125% to KSh2.7 billion).
Equity Insurance Group also sustained strong momentum, reporting a 75% increase in gross written premiums and a 36% rise in profit before tax.
Newly acquired life, general, and health underwriting licenses have expanded the Group’s footprint in insurance, with Equity Life Assurance now serving 6.9 million customers and issuing 19.2 million policies since inception.
Operational efficiency improved markedly, with the cost‑to‑income ratio falling to 51% from 58.2%.
Over 98% of customer transactions were conducted outside branches, and 88.4% were processed through digital channels.
This reflects Equity’s continued investment in customer‑centric digital infrastructure, which has lowered costs while enhancing convenience.
Loan loss provisions declined 28%, while non‑performing loan coverage strengthened to 67.7%, supported by a reduced cost of risk of 1.7%.
The balance sheet expanded 9% to KSh1.97 trillion, with customer deposits rising to KSh1.46 trillion and net loans increasing to KSh882.5 billion.
Equity Group Managing Director and CEO Dr. James Mwangi hailed the results as evidence of the Group’s successful transformation strategy.
“The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group,” he 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 went on: “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.”
Dr. Mwangi added that the Group will continue executing its 2030 strategy anchored in the Africa Recovery and Resilience Plan (ARRP).
“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, while extending access to affordable credit, insurance and investment solutions.”
Economic and social impact
Equity Group Foundation (EGF) delivered cumulative social impact investments worth KSh99.5 billion in FY2025.
Initiatives included scholarships for 1,115 scholars, training nearly one million entrepreneurs, enabling over 500,000 MSMEs to access KSh401 billion in credit, and empowering 3.8 million farmers with climate‑smart agriculture skills.
The Foundation also distributed over half a million clean energy solutions and planted 44.6 million trees.
Healthcare access expanded through the Equity Afya network, now 150 centres strong, serving 4.6 million patients. In technology, EGF trained over 600,000 youth in AI, machine learning, and data analytics through partnerships with iamtheCODE, Huawei, and WorldQuant University.
Equity’s performance comes against a backdrop of strong African economic momentum.
Eleven of the world’s 20 fastest‑growing economies in 2025 were in Africa, including South Sudan, Rwanda, and Uganda.
A minerals boom in DR Congo, Tanzania, and Uganda, coupled with favourable commodity prices, supported regional growth. While geopolitical risks briefly spiked oil prices, analysts expect stabilization to benefit East African economies.
Equity Bank was named Best Regional Bank in East Africa and retained its position as Kenya’s most valuable brand in 2025.
The Group’s regional footprint and integrated digital payments infrastructure continue to strengthen market linkages for SMEs, enabling cross‑border trade and growth opportunities.