Equity Group Holdings Plc delivered solid financial results, underpinned by its strategic focus on diversification, innovation, and regional expansion. Equity Group 2024 Profit After Tax of Ksh48.8 billion, while Profit Before Tax (PBT) grew by 17% to Ksh60.7 billion.
While releasing the full year 2024 results, Dr James Mwangi, Equity Group Holdings Plc Managing Director, and CEO said, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group’s liquidity and capital position remains strong, positioning us to better support our customers in the years ahead.”
The Group’s total deposits grew to reach Ksh1.4 trillion with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise. The Group’s liquidity position remains strong, with cash and cash equivalents rising by 19% to Ksh345 billion, while investment securities grew to Ksh512 billion, contributing to an overall liquidity ratio of 57%.
The Group’s strategic focus on regional expansion and product diversification continues to drive growth with the Group’s regional subsidiaries contributing 49% of total assets, 48% of total loans and 54% of profit before tax, further diversifying the revenue base. The Kenya subsidiary, while still a major contributor, accounted for 46% of total revenue. Equity Bank Rwanda revenue grew YoY by 36%, Tanzania by 20% and DRC by 9% while PAT for Equity Bank Rwanda grew by 30% YoY, Tanzania by 107%, Uganda 186% and DRC by 29%, signalling increasing contributions from regional operations.
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Due to the global operating environment characterized by unprecedented geopolitical shifts, the Group’s defensive and prudent approach to risk management was evident in its loan loss provisions, which amounted to Kshs 20.2 billion. The Non-Performing Loan (NPL) ratio remained below industry average at 12.2%, significantly lower than the 16.4% published industry average. NPL coverage stands at 71%, reinforcing the Group’s strong asset quality.
The Life Assurance business continues to register impressive performance with YoY Profit before tax growing by 58% to Ksh1.5 billion from Ksh934 million. Further, the robust strategy for investment of policyholder funds resulted in a gross declared return of 13.5%, signaling Equity’s Group capabilities to provide value to the over 14 million policies issued since inception in March 2022.
With an eye on long-term value creation, the Group’s acquisition of a general insurance license, in addition to its existing life assurance license, marked an exciting milestone. This move enhances the Group’s ability to offer a comprehensive suite of insurance solutions ensuring that customers across all segments; corporate, SME, and retail, can access integrated solutions that protect their life, health, and wealth.
“As we continue to expand our financial services ecosystem, our Bancassurance unit remains a vital component of our growth strategy,” Dr Mwangi said. “The 6% increase in premium collections, despite the current market challenges, underscores the unit’s potential.”
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