NAIROBI – Equity Group announced Thursday a profit after tax of 15.4 billion Kenyan shillings (about $117.7 million USD), attributing its strong first-quarter 2025 results to prudent cost management and resumed growth across its diversified regional operations.

The financial services provider reported a 4% year-on-year increase in total assets, reaching KSh 1.75 trillion from KSh 1.69 trillion. Customer deposits surged by 7% year-on-year to KSh 1.32 trillion, while net loans grew by 3% year-on-year to KSh 804.7 billion. Regional operations significantly contributed to the group’s performance, accounting for 47% of total assets and 45% of profit before tax.

Dr. James Mwangi, Equity Group Holdings Plc Managing Director and CEO, highlighted the group’s resilience. “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape, where our financial strength provides the flexibility to seize opportunities as the regional economy presents diversified levers for growth,” Mwangi said in a statement accompanying the Q1 2025 results.

The group’s diversified business model and “tri-engine approach” integrating commercial, social, and sustainability priorities underpinned its profitability, yielding a Return on Equity (ROAE) of 23.9% and a Return on Assets (ROA) of 3.5%. Excluding non-operational inflation accounting from South Sudan, profit before tax grew by 8% to KSh 18.8 billion.

Kenya, while still the largest contributor, accounted for 51% of total revenue. The Kenyan subsidiary saw a 7% growth in deposits to KSh 792.7 billion and a 50% increase in profit before tax, driven by a 19% rise in total revenue and a 23% increase in non-funded income. Its return on assets and equity improved to 3.4% and 26.0%, respectively.

Regional subsidiaries continued their strong growth trajectory. Equity Bank Tanzania saw deposits increase by 14% and loans by 9% year-on-year, with profit before tax soaring by 540%. Equity BCDC in the Democratic Republic of Congo played a pivotal role in the Group’s Africa Recovery and Resilience Plan (ARRP), with customer loans growing 9% year-on-year to KSh 252.1 billion and deposits by 8% to KSh 468.4 billion. Overall, regional subsidiaries comprised 47% of total assets, 48% of net loans, and 45% of profit before tax.

Equity Group’s non-banking subsidiaries, including investment banking, fintech, and insurance, also delivered strong results. The insurance business reported a 27% increase in profit before tax to KSh 414 million. Since March 2022, the group has issued 15.3 million insurance policies, with 80% distributed through digital channels. The group is in the process of acquiring a health insurance subsidiary license to complement its existing general and life assurance licenses. Investment banking and technology businesses saw profitability grow by 142% and 10%, respectively.

Net interest income increased by 3% to KSh 28.6 billion, while total expenses decreased by 1% to KSh 29.5 billion, resulting in a pre-tax profit of KSh 18.7 billion. The Non-Performing Loan (NPL) ratio remained below the industry average at 14%, with NPL coverage at 67%, reinforcing strong asset quality.

The group continues to invest in technology, with 87% of all transactions now processed through digital channels. The Equity Mobile App and USSD processed 39.5 million transactions valued at KSh 942.7 billion, and Equitel handled 92 million transactions. The EazzyFX foreign exchange trading platform recorded KSh 29.5 billion in transaction value, and Pay With Equity (PWE) processed KSh 567.6 billion across more than 1.1 million merchants.

Beyond financial metrics, Equity Group highlighted its significant social impact. The Equity Leaders Program (ELP) has supported 29,515 scholars, with 113 on full scholarships at global universities. The group has also disbursed KSh 353 billion to 350,149 micro, small, and medium-sized enterprises (MSMEs) through the Young Africa Works program. On the climate front, the group has planted over 35 million trees and extended over $200 million in climate finance.

Mwangi concluded by reaffirming the group’s commitment to financial inclusion, regional expansion, and sustainable growth, stating it would continue to be a “catalyst for economic empowerment and resilience across Africa.”