Overview:
Regional subsidiaries reach critical mass as Equity Group posts a record 75.5 billion shilling profit, with international units now accounting for approximately half of the group's total banking earnings.
NAIROBI, Kenya — Equity Group Holdings Plc has reported a historic 55 percent surge in full-year profit, a performance driven by a fundamental shift in its geographic earnings base as regional subsidiaries reach critical mass.
The Group’s profit after tax for the 2025 financial year reached a record 75.5 billion shillings, up from 48.8 billion shillings in 2024. The results signal the success of a long-term diversification strategy, with units outside the Kenyan home market now generating approximately half of the Group’s total banking profitability.
The board has recommended a record dividend payout of 21.7 billion shillings, or 5.75 shillings per share, representing a 35.3 percent increase over the previous year.
The Group’s “Africa Recovery and Resilience Plan” found its strongest footing in the Great Lakes region. While Equity Bank Kenya delivered a solid 63 percent profit jump to 39.2 billion shillings, the international subsidiaries emerged as the primary growth anchors.
In the Democratic Republic of Congo, profit after tax rose 58 percent to 24.7 billion shillings, supported by 17 percent loan growth. However, the most explosive performance came from the Uganda subsidiary, which recorded a staggering 500 percent increase in profit to 3.6 billion shillings. Tanzania also posted triple-digit growth, with profits rising 125 percent to 2.7 billion shillings.
“The 2025 performance reflects the success of our deliberate transformation into a diversified, regional financial services group,” said Dr. James Mwangi, Equity Group Managing Director and CEO. “Our regional subsidiaries now contribute about half of our banking profitability, demonstrating the resilience that comes from our pan-African footprint.”
The Group’s balance sheet expanded 9 percent to 1.97 trillion shillings, but it was operational efficiency that bolstered the bottom line. The cost-to-income ratio improved significantly, falling to 51.0 percent from 58.2 percent.
This lean performance was fueled by a near-total migration to digital banking. Currently, 98 percent of customer transactions are conducted outside physical branches, with 88.4 percent processed via mobile and digital platforms. This shift allowed the Group to scale its 22.4 million customer accounts while lowering the overall cost-to-serve.
Insurance and social impact
Non-banking revenue also provided a strong hedge, with the Equity Insurance Group reporting a 75 percent increase in gross written premiums. The insurance arm delivered a 36 percent growth in profit before tax, reaching 2.0 billion shillings.
Parallel to its financial gains, the Group deployed 99.5 billion shillings into social impact and sustainability initiatives through the Equity Group Foundation. These programs have supported 1.1 million scholars and nearly one million entrepreneurs across the region.
Looking toward 2030, Equity aims to serve 100 million customers across 15 countries. Mwangi noted the Group is evolving into a “transformation finance institution,” utilizing AI and digital ecosystems to integrate trade and credit access across the continent.
Key Performance Metrics FY2025
Profit after tax: 75.5 billion shillings (+55%)
Uganda profit growth: 500%
DRC profit growth: 58%
Cost-to-income ratio: 51.0%
Proposed dividend: 5.75 shillings per share (+35.3%)