Equity Group Holdings Plc net earnings for the period ended 30th September 2025 jumped 32% to KSh 54.1 billion up from KSh 40.9 billion over a similar period last year. Equity Group is the first off the blocks to release its results for Q3 2025. Its positive results signal a good run for the banking sector as the market awaits other players to publish their Q3 earnings for the period.
At the Nairobi Securities Exchange(NSE), Equity stirred the market and was among the top movers, trading 457,518 Shares in 202 deals with a gross turnover of KSh 29.1million. The counter opened at KSh 61.50 and reached a high of KSh 65.50 as investors priced in the positive financial results. Equity Bank capitalization at the NSE hit KSh 240 billion, the share price having gone up 31,5% since Janaury 2025.
Equity’s Gross Non-performing loans grew 3.1% to KSh 129.2 billion even as pressure mounts from the regulator for banks to lower their lending rates and onboard a newly introduced loan pricing model.
Analysts maintain that while the Central Bank of Kenya(CBK) loan pricing model will boost access to bank credit, most lenders are said to be still navigating this landscape. While the tool allows banks to effectively manage risk and increase lending to creditworthy customers, it may also increase interest rest charged on other borrowers, potentially increasing the number of defaulters.
Equity Group Q3 Financials shows that its balance sheet size grew 6.7% to KSh 1.8 Trillion from KSh 1.7 Trillion at the end of September last year. However, the lenders non-performing loans portfolio grew to KSh 129.2 billion from KSh 125.3 billion in September 2024.
Equity Group’s loan book expanded to KSh 859.8 billion from KSh 800.1 billion in Q3 2024 while interest income from its loaning activities were up 16.1% to KSh 93.6 billion.
Equity Group Plc Subsidiaries
The Kenyan business remains the most profitable and turned in 51% increase in net profit to KSh 31.1 billion up from KSh 20.6 billion in Q3 2024. Net interest income grew by 27% to KSh 53.6 billion from KSh 42.0 billion, supported by a 34% decline in interest expenses, which reduced to KSh 25.1 billion from KSh 38.0 billion.
In the DRC, Net Profit rose by 21% to KSh 13.8 billion up from KSh 11.4 billion. Loans and advances grew by 19% to KSh. 302.7 billion, up from KSh. 253.5 billion, funded by a corresponding decline in cash holdings from KSh. 275 billion KSh. 259.3 billion. Total equity rose by 28% to KSh. 88.8 billion, up from KSh. 69.4 billion.
In Uganda, Net Profit was up 61% to KSh. 2.9 billion, up from KSh. 1.8 billion. Investment securities grew by 23% to KSh. 39.6 billion from KSh. 32.1 billion, while total equity rose by 23% to KSh. 18.5 billion, compared to KSh. 15.8 billion previously.
In Rwanda, total assets expanded by 5% to KSh. 122.9 billion, up from KSh. 116.6 billion, driven by a 34% growth in the loan book, which increased to KSh. 62.3 billion up from KSh. 46.4 billion. Total equity also recorded an 18% increase to KSh. 19.6 billion, up from KSh. 16.6 billion.
In Tanzania, Net earnings grew by 88% to KSh 1.5 billion, up from KSh 0.8 billion, making it the most rapidly growing subsidiary. Shareholders’ funds rose by 83% to KSh 12.1 billion, up from KSh 6.6 billion, while loans and advances grew by 51% to KSh. 37.4 billion, compared to KSh. 24.8 billion in the previous period.
Analysts attribute the fast growth of the Tanzanian subsidiary to Equity’s plan to tap into Agro-processing, Blue Economy, Infrastructure and Trade-growth sectors that offer higher returns. As the business scales, fixed costs spread over more volume while digital channels help lower cost-to-income ratios.
Boasting of a strong brand, Equity Group has been able to outpace its other competing Kenyan banks that have expanded into the region, including KCB and Diamond Trust Bank. This is owed to its strategy of buying into already established banking networks rather than building from scratch.
According to research briefs from Standard Investment Bank(SIB), Equity Group’s non-funded income mix deteriorated to 40.1% from 43.1% in Q3 2024. This is as forex trading income fell 5.2% and other incomes declined 8.6%. This is despite the lender’s rising digital transaction volumes and diversified revenue streams such as an insurance business.
Interest on loans and advances contracted by 2% to KSh 77.8 billion, attributed to lower loan yields as the lender priced in cuts on the benchmark rate by the Central Bank of Kenya(CBK) during the period,
SIB said that while the Group’s fundamentals and long term outlook remains compelling, its share price which has only risen 28.6% since the year begun, is still underperforming the market.
The regional lender sustained its loans to the SME sector, disbursing 45% of the KSh 201 billion MSME loans in Kenya between January and June this year.
The lender also pumped in an estimated KSh 98 billion to finance various social impact and sustainability investment activities across its markets.
ALSO READ: Kenyan Banks on the List of Africa’s Top 100 in 2025
