Equity Group Holdings has announced a 32 percent rise in profit after tax to Kshs 54.1 billion for the third quarter ended September 2025, compared to Kshs 40.9 billion in the same period last year. The performance underscores the Group’s sustained strategic transformation, regional diversification, and efficiency gains across its operations.
The lender’s strong earnings were underpinned by broad-based revenue growth, robust regional performance, and a recovery of its Kenyan banking operations, signaling resilience amid a challenging macroeconomic environment.
“The execution of the strategic business plan has started to reflect on the balance sheet and performance of the Group in agriculture, mining, manufacturing, trade and investment, and small and medium enterprises that populate the eco-systems of the formal sector,” said Dr. James Mwangi, Managing Director and Chief Executive Officer of Equity Group.
“This is likely to significantly and increasingly transform the structure and performance of the Group.”
Regional Subsidiaries Power Growth
Equity’s continued expansion beyond Kenya remains central to its growth trajectory. The Group’s regional subsidiaries — spanning Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo (DRC) — now account for nearly half of the institution’s business.
According to the results, 50% of deposits, 53% of the loan book, 50% of total banking assets, and 49% of total banking revenue now originate from outside Kenya. These operations contributed 45% of profit before tax and 42% of profit after tax for the banking segment, highlighting the success of Equity’s diversification model.
This balance between domestic and regional operations has not only reduced concentration risk but also positioned the Group as one of the most geographically diversified financial institutions in East and Central Africa.
“Regional diversification continues to transform Equity Group from a Kenyan bank into a regional powerhouse,” the lender noted in its financial statement.
The Group’s presence in the DRC, which became one of its fastest-growing subsidiaries following the 2021 acquisition of Banque Commerciale du Congo (BCDC), has been a major earnings contributor, benefiting from high transaction volumes and growing demand for SME and trade finance solutions.
Diversifying Beyond Banking
Equity’s strategy to evolve from a traditional banking institution into an integrated financial services group also continued to bear fruit. Its insurance subsidiary, Equity Insurance Group, recorded a 36% growth in profit before tax to Kshs 1.46 billion, up from Kshs 1.07 billion a year earlier.
The subsidiary’s gross written premiums jumped 71% to Kshs 6.55 billion, compared to Kshs 3.83 billion in the previous year — a reflection of growing market confidence and demand for comprehensive insurance solutions across the Group’s customer base.
The expansion of the insurance segment complements Equity’s broader ambition to build a fully-fledged financial ecosystem encompassing banking, insurance, investments, and fintech solutions, all interconnected through technology-driven platforms.
This ecosystem approach has allowed the Group to capture value across multiple sectors, enhance customer loyalty, and improve operational resilience by reducing reliance on traditional interest income.
Technology Driving Operational Efficiency
Dr. Mwangi emphasized that technology remains at the core of Equity Group’s operational performance and long-term competitiveness. Over the past year, the Group has deepened its investment in digital infrastructure, enhancing system reliability and cybersecurity while expanding digital access across its regional markets.
“Technology remains central to the Group’s strong operational performance and strategic resilience,” Dr. Mwangi said.
“During the quarter, we further improved system reliability, launched key digital integrations across markets, strengthened fraud controls, and advanced our AI and data governance frameworks.”
Equity’s ongoing digital transformation has been key to scaling service delivery across borders and reducing operating costs. Mobile and internet banking platforms now handle the bulk of customer transactions, aligning with the lender’s vision of becoming a technology-powered financial services provider.
The Group’s push into artificial intelligence (AI) and data analytics is also helping refine credit risk models, enhance fraud detection, and personalize customer engagement — strengthening its competitive edge across markets.
Kenyan Banking Unit in Recovery
After a period of macroeconomic pressure marked by high interest rates and inflationary challenges, the Group’s Kenyan banking business showed strong recovery, contributing significantly to overall profitability.
The domestic unit benefited from improved asset quality, stronger loan performance, and increased customer deposits, alongside stable non-funded income streams from trade finance and digital channels.
Analysts note that Equity’s local recovery, coupled with sustained growth from its regional operations, positions the Group favorably heading into the final quarter of 2025.
Outlook: Consolidating Growth and Innovation
Looking ahead, Equity Group is expected to sustain its momentum through continued investment in technology, diversification, and regional integration. The Group’s balance sheet transformation — with a rising share of non-interest income and insurance revenues — underscores a shift toward a more balanced, multi-sector financial model.
Equity has also aligned its growth strategy with key economic sectors such as agriculture, manufacturing, and trade, supporting SMEs that drive regional value chains. This sectoral focus, paired with innovative digital lending and payment solutions, positions the Group to capture new growth opportunities even amid global uncertainty.
The bank’s focus on environmental, social, and governance (ESG) principles, financial inclusion, and sustainable financing remains a cornerstone of its long-term strategy, particularly as regional markets deepen integration under the African Continental Free Trade Area (AfCFTA) framework.
As the Group continues to scale, analysts expect that sustained growth in its insurance and digital businesses will enhance earnings diversity and resilience against market shocks.
Regional Powerhouse for the Future
With nearly half of its deposits, assets, and profits now generated outside Kenya, Equity Group’s transformation into a regional financial powerhouse appears firmly on track.
Its blend of regional diversification, technology investment, and strategic focus on integrated financial services is reshaping the Group’s identity — from Kenya’s largest bank by customer base to one of Africa’s most dynamic multi-market financial institutions.
As Dr. Mwangi put it, “The structural transformation we are seeing — in our balance sheet, in our revenue sources, and in the sectors we serve — reflects a Group that is not just growing, but evolving to meet the future of African finance.”
