Regional Subsidiaries Lift Equity Group Q1 Net Profit to Ksh19 Billion

Equity Group Holdings Plc has reported strong first quarter results for 2026, with Profit After Tax rising 24% to Ksh19.1 billion, reflecting strengthened balance sheet quality and growing contributions from regional subsidiaries.

Equity Group’s balance sheet expanded 16% to Ksh2.04 trillion, supported by 13% growth in customer deposits and 9% growth in net loans. This growth was driven by a strong customer base of 22.7 million customers, supported by an extensive distribution infrastructure comprising 86,910 agency outlets and 1.4 million merchants.

Dr. James Mwangi, Equity Group Managing Director and CEO, said first quarter performance reflects a multi‑year transformation agenda anchored on resilience, diversification and technology. The Group has restructured its operating model, strengthened its regional footprint, and invested heavily in digital and AI-enabled capabilities to build a future‑ready institution.

Operational efficiency continued to improve, with the cost‑to‑income ratio declining to 50.6% from 54.2% – a direct outcome of productivity gains, shared services, and customer‑led migration to digital channels. Return on assets and equity remained strong, with ROA at 3.9% and ROE at 22.6%.

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“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology‑led financial services Group,” Dr. James Mwangi said. “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 added: “As we progress towards our 2030 ambitions, we are evolving beyond traditional banking into a transformation finance institution that mobilises capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa.”

Equity’s technology‑led transformation is now firmly embedded. Customer behaviour continues to shift decisively towards digital channels, with 98.3% of all transactions occurring outside branches and 89.5% processed through digital platforms.

Equity Group’s technology organization, strengthened through the buildout of the Technology Group in the fourth quarter, continues to modernize core systems, payments infrastructure, and risk analytics. This transformation is reinforced by large-scale staff upskilling, with employees embracing AI and digital training.

Tighter risk controls and diversification

The Group continued to strengthen asset quality and risk buffers. NPL coverage improved to 72%, up from 67%, while loan loss provisions declined by 18% as the quality of the loan book improved. The loan book also recorded a significant improvement in risk indicators, with a year‑on‑year improvement in non-performing loans (NPLs) from 14% to 10%.

Regional subsidiaries accelerated growth, and now account for 50% of group banking profitability and 52% of total assets. Equity Bank Kenya delivered a 21% year-on-year increase in Profit After Tax to Ksh10.3 billion (Q1 2025: Ksh8.5 billion) and sustained its MSME banking leadership.

For EquityBCDC in the Democratic Republic of Congo, profit after tax rose by 32% to Ksh5.0 billion. Equity Rwanda delivered a 36% increase to Ksh1.5 billion, while Equity Tanzania recorded exceptional performance with 150% growth to Ksh1.04 billion.

Across assets, revenue, loan book, and profit before tax, the regional banking businesses are now a major contributor with 52%, 51%,54%, 50% respectively, demonstrating the strength and maturity of the Group’s pan‑African strategy.

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