Equity Group net profit profit surges 32pc to Sh45.5bn in 6 months

Equity Group Holdings Plc has announced a 32 percent increase in net profit to Sh45.5 billion from Sh34.6 billion in the first half of the current financial year. This reflects improved balance sheet quality, growth from regional subsidiaries, and increased non-funded income. Net interest income rose by 17 percent to Sh69.3 billion, while total income grew 25 percent to Sh124.9 billion, driven by a 36 percent increase in non-funded income, now contributing 44.5 percent of total income. The balance sheet expanded 20 percent to Sh2.16 trillion, supported by a 21 percent rise in customer deposits to Sh1.59 trillion and a 19 percent increase in net loans to Sh981 billion. Shareholders’ funds grew 27 percent to Sh350 billion. Equity serves 23.3 million customers through digital platforms and 410 branches, complemented by 886 ATMs, 92,572 agency outlets, and 1.4 million merchants. The Group’s performance is driven by regional economic growth, with Kenya projected at 4.5–5 percent, DRC at 5.6 percent, Tanzania at 5.9 percent, Uganda at 6.4 percent, Rwanda at 6.8 percent, and South Sudan at 20 percent. Dr James Mwangi, Group Managing Director, highlights a multiyear transformation agenda focused on resilience, diversification, and digital/AI capabilities. Operational efficiency improved, with a cost-to-income ratio of 48.6 percent and strong returns on assets (4.5 percent) and equity (26.5 percent). Non-performing loans coverage improved to 70 percent, and loan loss provisions fell 6 percent year-on-year. Equity’s digital adoption is accelerating, with 98.3 percent of transactions occurring outside branches and 89.7 percent processed digitally. Regional subsidiaries contribute 42–54 percent of Group profitability, deposits, and loans, underscoring a successful pan-African expansion strategy.