Equity Bank Rwanda Plc recorded a 12 per cent increase in profit after tax to KSh2.9 billion (approx. Rwf33 billion) in the first half of 2026, contributing to a strong performance by its parent company, Equity Group Holdings Plc.

Equity Group's profit after tax increased by 32 per cent year on year to KSh45.5 billion from KSh34.6 billion in the same period last year, while profit before tax rose by 39 per cent to KSh57.8 billion from KSh41.5 billion.

This is according to Group’s financial results for the first half (H1) of 2026, which were released on August 19.

The Group attributed the performance to stronger balance sheet growth, improving asset quality, increased contributions from regional subsidiaries and rising non-funded income.

Non-funded income refers to money earned from banking and other financial services outside interest income from lending. It includes fees, commissions, foreign-exchange earnings and income from other financial services.

ALSO READ: Equity Bank Rwanda posts Rwf59 billion profit amid robust loan growth, strong efficiency

Regional businesses drive growth

Equity Rwanda was among the Group&039;s regional subsidiaries that recorded positive growth during the period.

Equity Bank Tanzania posted the strongest increase, with profit after tax rising 82 per cent to KSh2 billion, while Equity BCDC in DR Congo recorded a 30 per cent increase to KSh11.8 billion.

Overall, regional subsidiaries contributed 42 per cent of the Group's banking profitability and 52 per cent of banking revenue. They also accounted for 51 per cent of the Group’s deposits, 54 per cent of its loans and 52 per cent of its banking assets, which its management described as a testament to the success of the Group’s pan‑African expansion strategy.

While releasing the results, Dr James Mwangi, Group Managing Director and CEO, said the Group’s performance is unfolding against a backdrop of resilient regional economic growth.

"Kenya is projected to expand by 4.5%-5%, the DR Congo by 5.6%, Tanzania by 5.9%, Uganda by 6.4%, Rwanda by 6.8%, and South Sudan by 20%. These growth rates are supported by firm commodity prices and policy reforms and are expected to sustain, making the region where we operate one of the fastest growing regions in the world,” he said.

"Equity’s half-year 2026 performance is the outcome of a multiyear transformation agenda focused on resilience, diversification, and technology enablement. The Group has repositioned its operating model, strengthened its regional presence, and invested heavily in digital and AI-enabled capabilities to build an institution equipped for the future.”

ALSO READ: Equity Bank Rwanda posts 36% profit surge in Q1 2026 as Group expands regional digital-led growth

Balance sheet and income expand

The Group&039;s balance sheet expanded 20 per cent to KSh2.16 trillion, driven by a 21 per cent increase in customer deposits to KSh1.59 trillion and 19 per cent growth in loan book to KSh981 billion.

Total income rose 25 per cent to KSh124.9 billion, while net interest income increased 17 per cent to KSh69.3 billion.

Non-funded income was a major growth driver, increasing 36 per cent to KSh55.6 billion and accounting for 44.5 per cent of total income, up from 40.8 per cent in the first half of 2025.

The Group also reported improved asset quality, with non-performing loans (NPL) falling to 9.5 per cent from 13.7 per cent. NPL coverage increased to 70 per cent from 68 per cent, while the cost of risk improved to 1.4 per cent from 1.7 per cent.

Operational efficiency improved, with the cost-to-income ratio falling to 48.6 per cent from 51.7 per cent, driven by productivity gains, shared services, and a decisive customer shift toward digital channels.

Return on Assets stood at 4.5 per cent, while Return on Equity reached 26.5 per cent, demonstrating strong asset productivity and disciplined capital allocation, the Group observed.

Digital adoption accelerates

Technology remained central to the Group's growth, with 98.3 per cent of transactions now taking place outside branches and 89.7 per cent processed through digital platforms, which Mwangi said demonstrates that "customers are actively choosing the convenience and reliability of Equity’s digital ecosystem.”

Equity serves 23.3 million customers through digital and physical channels, including 410 branches, 886 ATMs, 92,572 agency outlets and 1.4 million merchants.

The Group said 82 per cent of its staff had completed a business-focused generative AI course. Also, 406 staff were admitted to master's programmes in Financial Engineering and Applied AI through WorldQuant University.

These investments, the Group pointed out, enable faster service delivery, enhanced risk management, and scalable growth across all markets.

Mwangi said the Group's transformation is taking it beyond conventional banking.

"Our H1 2026 performance reflects the success of our deliberate transformation into a diversified, regional, technology-enabled financial services Group. We are building a future ready institution; scalable, secure, and impact led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” he said.

"As we progress towards our Africa Recovery and Resilience Plan (ARRP) 2030 ambitions, we are evolving beyond traditional banking into an integrated tech enabled financial institution that mobilizes capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa.”

Insurance and wider businesses expand

Equity Insurance Group reported a 24 per cent increase in gross written premiums to KSh6.4 billion, while profit before tax rose 34 per cent to KSh1.25 billion.

Non-banking subsidiaries increased their contribution to the Group revenue to 4.8 per cent from 4 per cent.

Through the Equity Group Foundation, the Group continued programmes in education, entrepreneurship, agriculture and climate resilience. The foundation has trained more than one million entrepreneurs and facilitated over KSh436 billion in credit access to Micro, Small, and Medium Enterprises (MSMEs), accelerating entrepreneurship, financial inclusion and job creation across the region.

its Energy, Environment and Climate Action pillar, the Group has also planted more than 48.7 million trees and secured accreditation as a Direct Access Entity to the Green Climate Fund, allowing it to directly mobilise climate finance for sustainable development programmes across Africa.

Eye on 2030 expansion

Equity said its first-half performance exceeded management guidance in nearly all parameters and positions the Group for the next phase of its Africa Recovery and Resilience Plan.

The 2030 strategy targets expansion into 15 countries, serving 100 million customers and deploying next-generation digital and AI-enabled systems to scale transformation finance across Africa.

The results reinforce the growing importance of Rwanda and other regional subsidiaries to Equity's broader Pan-African growth strategy.