Equity profit surges to Ksh75.5B as regional units contribute nearly half of earnings

In a statement on Tuesday, the Group said the proposed dividend amounts to Ksh21.7 billion, up from Ksh16 billion paid out in 2024, representing a 35.3% growth in dividends.

Equity said its balance sheet expanded by 9% to Ksh1.97 trillion, with customer deposits rising 4% to Ksh1.46 trillion and net loans growing 8% to Ksh882.5 billion. 

The Group said it closed the year with 22.4 million customer accounts, supported by its regional footprint and digital ecosystem.

The lender said net interest income grew 17% to Ksh126.9 billion, while non-funded income increased 7% to Ksh90.8 billion, pushing total income up 12% to Ksh217.7 billion.

Operational efficiency improved, with the cost-to-income ratio falling to 51.0% from 58.2%, which the Group attributed to increased use of self-service channels and tighter cost discipline. 

Equity said over 98% of customer transactions were conducted outside branches, with 88.4% processed through digital channels.

Loan loss provisions declined 28%, while non-performing loan (NPL) coverage strengthened to 67.7%, with cost of risk reported at 1.7%.

Equity Group Managing Director and CEO Dr James Mwangi said the results reflect the Group’s transformation into a diversified regional financial services group, noting that regional subsidiaries now contribute about half of the Group’s banking profitability.

Equity Bank Kenya’s profit after tax rose 63% to Ksh39.2 billion. 

Regional banking subsidiaries recorded a 53% growth in profit after tax to Ksh36.3 billion, driven by profit growth in the DRC, Uganda and Tanzania units.

The Group also reported growth in its insurance business, saying Equity Insurance Group posted a 75% increase in gross written premiums to Ksh9.17 billion, with profit before tax rising 36% to Ksh2.0 billion.