Equity Group managing director and CEO James Mwangi during an investor
briefing in Nairobi, on October 30 /HANDOUT
Equity Group Holdings has reported net earnings of Sh54.1 billion for the three months to September, supported by easing economic pressures both locally and internationally.
This reflects a 32 per cent growth compared to the Sh40.9 billion reported in the second quarter.
The lender has also attributed the
growth to diversified and growing revenue streams, enhanced efficiency, and
strong regional contributions and strong recovery of the Kenya banking
business.
“During the quarter, the global
environment demonstrated resilience with slightly stronger economic growth
expected for the year. Easing global inflation rates has been helpful in an
international landscape increasingly shaped by trade tensions and
fragmentation.”
The lender’s Q3 performance was
marked by a Return on Average Equity (RoAE) at 26.4 per cent and Return on
Average Assets (RoAA) at 4.1 per cent.
The group demonstrated effective
revenue diversification, as evidenced by a 16 per cent growth in net interest
income and a three per cent growth in non-funded income.
It also achieved improved
efficiency, with the cost-to-income ratio significantly reduced to 50.6 per
cent from 55.1 per cent, while strong asset quality was maintained through an
increase in non-performing loans (NPL) coverage to 71.4 per cent and a contained
cost of risk at 1.9 per cent.
Speaking at an investor briefing
held in Nairobi on Thursday, Equity Group managing director and CEO, James
Mwangi, said that the execution of the strategic business plan has started to reflect on the balance sheet.
"Our Q3 2025 performance
reflects the strength of our diversified tri-engine business model, operational
efficiency, and continued commitment to transforming lives," Mwangi said.
He added that by empowering MSMEs,
leveraging digital platforms, and aligning with Africa’s socio-economic and
sustainability priorities, the bank continues to drive inclusive growth and
create shared prosperity.
“We are particularly proud of our
regional subsidiaries, which have demonstrated resilience and contributed significantly
to our overall performance."
Equity Bank Kenya contributed
heavily to the Group’s performance, accounting for Sh31.1 billion to the net
earnings, up from Sh20.6 billion in the previous period.
Net interest income grew by 27 per
cent to Sh53.6 billion from Sh42 billion, supported by a 34 per cent decline in
interest expenses, which reduced to Sh25.1 billion from Sh38 billion.
The Kenyan subsidiary sustained its
MSME banking leadership, disbursing 45 per cent of the Sh201 billion MSME loans
in Kenya between January and July 2025, and the Equity Insurance Group reported
a 71 per cent increase in gross written premiums, contributing to a 36 per cent
growth in profit before tax.
Regional subsidiaries also made
significant contributions, with Equity BCDC (DRC) recording 19 per cent YoY
loan growth and Equity Bank Rwanda achieving 34 per cent.
At least 50 per cent of deposits,
53 per cent of the loan book, 50 per cent of total banking assets, and 49 per
cent of Group banking revenue originated from regional subsidiaries.
This regional banking business has
been value-creating, contributing 45 per cent of gross earnings and 42 per cent
of net profits.
In the DRC, Profit after Tax
increased by 21 per cent to Sh13.8 billion from Sh11.4 billion, while Uganda reported
a 61 per cent growth of Sh2.9 billion, up from Sh1.8 billion.
In Rwanda, total assets expanded five
per cent to Sh122.9 billion, up from Sh116.6 billion, driven by growth in the
loan book, which increased to Sh62.3 billion, up
from Sh46.4 billion. In Tanzania, Profit after Tax almost doubled, growing by
88 per cent to Sh1.5 billion, up from Sh0.8 billion.
Equity Insurance Group registered a
36 per cent growth in gross profits to Sh1.46 billion, up from Sh1.07
billion in the prior year. This growth is supported by a 71 per cent
increase in gross written premiums of Sh6.55 billion, up from Sh3.83 billion.
The non-banking businesses, the
technology and insurance Group, raised their total contribution to Group assets
from 1.5 per cent to 1.9 per cent year on year and revenue to three per cent
from 2.8 per cent.
The Group’s loan book quality remains stable with the Group NPL ratio having peaked at 14 per cent in Q1 2025 from 13.4 per cent in Q3 2024 to 12.1 in Q3 2025, driven by improvement in NPL ratios in all markets. Equity Group outperformed the Kenyan industry, registering an NPL ratio of 12.1 per cent against the industry average ratio of 17.1 per cent as at September 2025.
