Equity Group has recorded a 12 per cent increase in its profit after tax to Sh48.8 billion in its FY 2024 financial results as its diversified business model and prudent financial management continued to bear fruit.

The Group’s profit before tax grew by 17 per cent to Sh60.7 billion, resulting in the earning per share increasing rose by 11 per cent to Sh12.3 showing its strong financial performance.

During the financial period under review, the Tier-1 lender’s total net income increased by 6 per cent to Sh193.8 billion.

Equity Group’s Non-Performing Loan (NPL) ratio stood at 12.2 per cent, below the 16.4 per cent industry average, even as the financial institution’s NPL coverage stood at 71 per cent.

In that period, the Group’s total deposits grew to Shs 1.4 trillion while the customer base also expanded to 21.6 million, showcasing the scale and reach of the deposit franchise.

Read More

  1. KQ records Sh5.5 billion profit before tax after more than 11 years of record losses
  2. How Credible Blooms rose from rose exporter to become regional food giant
  3. Adulting Just Got Easier: Secure what you treasure without breaking the bank!

Its cash and cash equivalents rose by 19 per cent to Sh345 billion as investment securities grew to Sh512 billion, contributing to an exemplary overall liquidity ratio of 57 per cent.

This performance positions the Group to effectively reinforce its Africa Recovery and Resilience Plan (ARRP), a private sector led development plan steered by Equity to catalyze, capacitate, connect, and finance enterprises and households across Africa.

Equity Group MD and CEO Dr James Mwangi said the Group's regional expansion and product diversification were driving its growth with Equity regional subsidiaries contributing 49 per cent of total assets, 48 per cent of total loans and 54 per cent of profit before tax.

The Kenya subsidiary, Equity Bank Kenya, accounted for 46 per cent of total revenue. Equity Bank Rwanda’s revenue grew by 36 per cent, Tanzania by 20 per cent and DRC by 9 per cent,

Similarly, the net profit for Equity Bank Rwanda grew 30 per cent, Tanzania 107 per cent, Uganda 186 per cent and DRC 29 per cent, showing growing contributions from regional operations.

“In terms of revenues, the region is outperforming Kenya. 54 per cent of our revenues are from the region,” noted Dr Mwangi.

Shareholder Sally Jepkorir, Equity Group Chairman Prof Isaac Macharia, Equity Group MD & CEO Dr James Mwangi, and shareholder Daniel Kimotho. PHOTO/EQUITY 

This is well backed by a return on equity (ROE) of 21.5 per cent and a return on assets (ROA) of 2.8 per cent, showing a performances well above the industry averages.

Its new baby Equity Insurance currently boasts of 5.9 million unique customers and is showing signs that it is on a stellar growth trajectory during the 2025 financial year.

“We have successfully diversified into other businesses, including insurance, where we have issued 14.1 million insurance policies in the last 3 years,” said Dr Mwangi.

He says, in the past six months alone, Equity Bank Kenya reduced its base lending rate three times in a bid to expand its loan book in anticipation of an economic turnaround in Kenya.

“The lowering of interest rates will reduce the cost of borrowing, offering businesses access to more affordable credit while for households it means increased disposable income thus stimulating consumer spending.

“We are optimistic that this year we grow our loans by between 10 and 15 per cent, and deposits between 10 and 15 per cent, and we'll test this in the first quarter, which we will be reporting in just about a month's time.”

Owing to the stellar performance in FY 2024, the Equity Group Board of Directors have recommended a dividend per share of Sh4.25, a payout ratio of 34.5 per cent.