Equity Group, one of East Africa’s most influential financial institutions, has released its half-year results for 2025, painting a nuanced picture of profitability, regional expansion and shifting market dynamics.
While the numbers confirm continued strength, they also expose the subtle pressures building within the financial services sector.
The Group posted a net profit of KES 28.6 billion for the six months ending June 2025, a modest rise compared to the KES 27.3 billion recorded in the same period last year. While the growth is positive, it reflects a slower trajectory than in previous years.
Part of this is attributed to currency depreciation, tighter lending environments, and a deliberate move toward risk-based lending across its subsidiaries.
Equity Bank Kenya, the Group’s flagship subsidiary, continues to lead in profitability and market penetration, with a notable growth in customer deposits that crossed the KES 900 billion mark.
However, the Group’s regional operations in Uganda, Rwanda, and the Democratic Republic of Congo are increasingly pulling more weight, showing double-digit growth in loan books and deposit mobilization.
This trend underscores Equity’s long-term strategy to build a diversified Pan-African footprint that reduces over-reliance on any single market.
Non-funded income, a crucial revenue pillar, rose significantly, driven by innovations in digital channels, merchant banking, and diaspora remittances. The bank processed over KES 2 trillion in digital transactions in just six months, reflecting both the shift in customer behavior and Equity’s aggressive digital investment.
But the market environment remains cautious. The Group’s loan loss provisions rose slightly, a reflection of broader economic headwinds affecting household and SME borrowers across the region.
At the same time, the cost-to-income ratio stayed within a stable range, a sign of disciplined expense management despite the pressure of rising operational costs.
Dr. James Mwangi, Group CEO and Managing Director, remains bullish on Equity’s Pan-African strategy, pointing to increased resilience and opportunity in regional integration.
In his statement, he emphasized that the Group is entering a phase of strategic maturity where scale, sustainability, and social impact must be balanced against short-term profitability.
Looking ahead, Equity is expected to double down on digital banking, green finance, and inclusive credit models aligned with climate-smart agriculture, health, and education.
With a capital adequacy ratio comfortably above regulatory thresholds and a liquidity position that supports expansion, the Group appears well-positioned for the evolving financial landscape.
As East Africa’s economies continue recalibrating post-pandemic, Equity Group’s results offer a case study in cautious optimism, where bold expansion meets disciplined management, and where the future of banking lies in a blend of innovation, inclusion, and regional insight.
