Equity Group Holdings Plc has demonstrated strategic agility and resilience, achieving strong results and growth in its diversified business across the region in Q1 2025. The Group reported a Profit After Tax (PAT) of Kshs 15.4 billion, underscoring its position as a regional systemic financial services provider, notably ranking second in three of its six operational markets: Kenya, the Democratic Republic of Congo (DRC), and Rwanda. This performance reflects a dynamic global economic landscape and the Group's effective strategic focus.

Dr. James Mwangi, Equity Group Holdings Plc Managing Director, and CEO, commented on the results: “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. This, coupled with the strength of our regional and non-banking subsidiaries, positions us to continue delivering sustainable growth and creating long-term value for our customers, communities, and shareholders, supported by our strong liquidity and total capital positions of 58.5% and 18.3% respectively.”

Key Financial Highlights: The Group’s robust financial foundation saw customer deposits surge by 7% year-on-year to Kshs 1.32 trillion from Kshs 1.24 trillion. This fueled a strategic expansion of net loans by 3% year-on-year, reaching Kshs 804.7 billion from Kshs 779.2 billion. Total assets experienced a 4% year-on-year growth, amounting to Kshs 1.75 trillion from Kshs 1.69 trillion. Equity Group delivered strong profitability, achieving a Return on Average Equity (ROAE) of 23.9% and a Return on Assets (ROA) of 3.5%. Excluding non-operational inflation accounting in South Sudan, the Group’s profit before tax reflected an 8% growth, increasing from Kshs 17.3 billion to Kshs 18.8 billion.

Kenyan Subsidiary Performance: The Kenya subsidiary demonstrated significant recovery, registering a 7% growth in deposits to Kshs 792.7 billion. Total revenue for the Kenyan operations was up by 19%, and non-funded income increased by 23% to Kshs 7.57 billion, resulting in a substantial 50% increase in profit before tax. Kenya’s return on assets and equity improved to 3.4% and 26.0%, respectively. While still a major contributor, the Kenyan banking subsidiary accounted for 51% of the Group's total revenue.

Regional Subsidiaries' Contribution: The Group’s regional subsidiaries continue to be strong contributors to its growth trajectory, accounting for 47% of total assets, 48% of net loans, and 45% of profit before tax. Equity Bank Tanzania’s recovery momentum saw deposits increase by 14% and loans by 9% year-on-year, leading to a remarkable 540% increase in profit before tax, with return on assets and return on equity at 3.2% and 22.6%, respectively. EquityBCDC in the DRC played a pivotal role, with a 9% year-on-year growth in customer loans to Kshs 252.1 billion and an 8% rise in deposits to Kshs 468.4 billion. This subsidiary is instrumental in financing priority sectors such as agriculture, manufacturing, and MSMEs, reinforcing Equity’s strategic positioning as a cross-border financial powerhouse in East and Central Africa.

Financial Health and Prudent Management: Net interest income increased by 3% from Kshs 27.8 billion to Kshs 28.6 billion, while total expenses saw a 1% decrease to Kshs 29.5 billion. The Group’s Non-Performing Loan (NPL) ratio remained below the industry average at 14%, significantly lower than the 17.2% published industry average. NPL coverage stood at a strong 67%, reinforcing the Group’s robust asset quality.

Growth in Non-Banking Subsidiaries: Equity Group’s non-banking subsidiaries, including investment banking, fintech, and insurance, continued their stellar performance. These businesses support revenue diversification and deepen the Group’s value proposition through integrated, customer-centric solutions. The insurance business delivered good results, with Profit Before Tax rising 27% to Kshs 414 million from Kshs 321 million. Since its inception in March 2022, the Group has issued 15.3 million policies, with 80% distributed through digital channels. To enhance its offerings, the Group is acquiring a health insurance subsidiary license to complement its existing general and life assurance licenses. The investment bank and technology businesses registered strong profitability growth of 142% and 10% respectively, reinforcing the Group’s diversification strategy.

Strategic Focus: Africa Recovery and Resilience Plan (ARRP): The Group is effectively advancing its Africa Recovery and Resilience Plan (ARRP), a private sector-led development initiative championed by Equity. This plan aims to catalyze, capacitate, connect, and finance enterprises and households across Africa, building capabilities and mitigating risks to enable them to achieve their social, environmental, and economic ambitions for long-term transformation.

Strategic Partnerships for Impact: Strategic partnerships with Development Finance Institutions (DFIs), global implementation partners, and social institutions have been instrumental. Equity Group has collaborated with the African Development Bank (AfDB), Microsoft, and Mastercard Corporation to digitize 10 million farming customers under the Community Pass initiative through the MADE Alliance. The Group has also partnered with the World Food Programme to strengthen the capacity of smallholder farmers transitioning into agribusiness. Furthermore, a strategic partnership with the African Guarantee Fund (AGF) has secured guarantees of over Kshs 27 billion, increasing access to credit for women- and youth-led MSMEs.

Digital Transformation and Innovation: Equity Group has continued to invest significantly in technology, infrastructure, and diversification. Digital channels now process 87% of all transactions. Equity Mobile App and USSD processed 39.5 million transactions valued at Kshs 942.7 billion, up from 37.8 million transactions worth Kshs 720.2 billion in the previous year. Equitel handled 92 million transactions, up from 65.2 million. The Group’s foreign exchange trading platform, EazzyFX, recorded Kshs 29.5 billion in transaction value (up from Kshs 24.1 billion), while Equity Online posted Kshs 41.7 billion in transacted value (up from Kshs 36 billion). Pay With Equity (PWE), the interoperable merchant and payments platform, processed Kshs 567.6 billion (up from Kshs 487.5 billion) across more than 1.1 million merchants. The ONE Equity integrated digital platform allows customers to access a wide range of products and services seamlessly.

Commitment to Social Impact and Sustainability: Equity Group embraces a tri-engine approach, integrating commercial, social, and sustainability priorities. Under the Equity Leaders Program (ELP), the Group has supported 29,515 scholars, with 113 currently pursuing full scholarships in top global universities and over 970 alumni having studied at 233 universities across 37 countries. Additionally, 750 scholars were admitted into the pre-university internship program this year, with a cumulative 9,700 paid internships and 3,979 TVET scholars supported. On the climate front, the Group has planted over 35 million trees and facilitated the distribution of 494,543 clean energy products, extending over USD 200 million in climate finance. Equity Afia clinics have recorded 3.66 million patient visits across 134 facilities, enhancing healthcare access.

Recognitions and Future Outlook: Equity’s leadership in sustainability earned global recognition from the International Finance Corporation (IFC) as the financial institution with the highest number of climate-related transactions globally. The Group was recently named a Superbrand in East Africa for the fourth time and was a significant winner at the 20th Think Business Banking Awards, securing 16 trophies, including CEO of the Year and top honors in SME Banking, Financial Literacy, Agriculture Financing, and CSR. Equity Group remains focused on financial inclusion, regional expansion, and sustainable growth to continue being a catalyst for economic empowerment across Africa.