Equity Group posts 17% rise in half-year earnings amid systems transformation

Equity Group Holdings on Monday, August 11, reported a 17 per cent increase in profit after tax to $267 million (KShs 34.6 billion) for the first half of 2025, up from KShs 29.6 billion a year earlier, as its sweeping transformation programme begins to bear fruit despite a difficult operating environment. The development was announced by the Group Managing Director and Chief Executive, James Mwangi, during the lender’s investor briefing and release of the 2025 first half financial results. The Group posted its strongest quarterly performance in history, with profit before tax reaching KShs 22.9 billion — well above the four-year quarterly average of KShs 14.8 billion. Subsidiaries across the region recorded strong rebounds, with profit after tax growing by 40 per cent in Kenya and Uganda, 75 per cent in Tanzania, and 22 per cent in the Democratic Republic of the Congo (DRC). “The execution of the strategic business plan has started to reflect on the balance sheet and performance of the Group in agriculture, mining, manufacturing, trade and investment, and small and medium enterprises (SMEs) that populate the eco-systems of the formal sector in these value chains and is likely to significantly and increasingly transform the structure and performance of the Group,” said Mwangi at the briefing in Nairobi, Kenya. He added that continued execution has resulted in the transformation of the balance sheet structure and the resultant profit and loss structure, creating resilience in performance. Equity’s insurance portfolio — spanning life, general, and health businesses — and its regional banking network are now core growth drivers. Mwangi maintained that regional banking units account for 49 per cent of deposits, 50 per cent of the loan book, and 50 per cent of banking revenue. “In Rwanda, despite the decline in interest margin, it still has the highest returns on assets and return on equity. Despite a 30 per cent growth in the balance sheet following the merger of Equity Bank and Cogebanque, the returns on assets and equity have not been significantly diluted,” he noted. “Rwanda is also operating at a 35 per cent cost-to-income ratio. It has set the standard, and at the Group level, we are looking to reduce our cost-to-income ratio to about 40 percent in the short term, he added. The balance sheet reflected steady expansion, with total assets up 3 per cent, net loans up 4 per cent, deposits growing by 2 per cent, and shareholders’ funds surging 25 per cent. Earnings per share rose 16 per cent to KShs 8.8 from KShs 7.6. System’s overhaul Four years ago, Equity began what it describes as a self-disruption and complete transformation — not just incremental improvements. While its vision of socio-economic transformation has remained, its purpose has shifted from simply advancing financial inclusion to “giving dignity and changing lives” by catalysing private sector-led development financing. This shift is anchored in the Africa Recovery and Resilience Plan (ARRP), a “Marshall-like plan” for the continent which the Group helped develop. The strategy underpins Equity’s 2030 plan, which targets a presence in 15 countries and 100 million customers. To support this ambition, Mwangi pointed out that governance and leadership structures have been overhauled to ensure capacity, competence, transparency, and openness. Core systems and infrastructure have been replaced with scalable, next-generation technologies — including machine learning, generative artificial intelligence, and advanced data analytics — with enhanced security and innovative applications. A new go-to-market strategy is being deployed to translate product capabilities into tailored value propositions for industries, sectors, demographics, and customer-specific needs. Organisational culture is also being reshaped to embed customer centricity, integrity, professionalism, creativity, innovation, and teamwork, with an aim to attract and retain top talent.

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Equity Group posts 17% rise in half-year earnings amid systems transformation