Equity Group Holdings Plc, East and Central Africa’s largest bank by market capitalisation, reported a 4% drop in net profit for the first quarter ended March 31, 2025, amid a challenging economic environment and lower non-funded income.
Key Financial Highlights
| Metric | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| Total Income | KSh 48.2 Bn | KSh 50.0 Bn | –4% |
| Net Interest Income | KSh 28.6 Bn | KSh 27.8 Bn | +3% |
| Non-Funded Income | KSh 19.6 Bn | KSh 22.3 Bn | –12% |
| Loan Loss Provisions | KSh 3.4 Bn | KSh 6.1 Bn | –44% |
| PBT | KSh 18.7 Bn | KSh 20.2 Bn | –8% |
| PAT | KSh 15.4 Bn | KSh 16.0 Bn | –4% |
Equity Group Financial Summary (Q1 2025 vs Q1 2024)
CEO Statement
Dr James Mwangi, Managing Director and CEO, emphasised the Group’s resilience and strong regional performance despite global uncertainties.
“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.”
Subsidiary Performance
- Kenya remained the largest contributor, delivering KSh 8.5 billion in PAT (57% of group profit). Deposits grew 7% to KSh 792.7 billion. Profit before tax surged 50% to KSh 9.9 billion. However, NPLs rose to 19.0%.
- Tanzania saw the highest growth, with PBT up 540% to KSh 0.6 billion, driven by a sharp drop in NPLs (to 3.0%) and strong non-funded income.
- DRC (Equity BCDC): Posted KSh 4.7 billion in PBT, remaining resilient in local currency terms.
- Rwanda and Uganda contributed KSh 1.1 billion and KSh 1.2 billion, respectively.
“Equity is strongly positioned across all our subsidiaries. As we continue our transformation journey, we see significant opportunities for sustained growth,” Dr. Mwangi added.
Diversification and Digital Growth
- Non-banking businesses (insurance, investment banking, and fintech) contributed 4% of group earnings, with insurance profit before tax up 27% to KSh 414 million.
- Digital Channels: Now process 87% of all transactions. The Equity Mobile App and USSD handled 39.5 million transactions (KSh 942.7 billion), while Equitel processed 92 million transactions.
- EazzyFX: Foreign exchange platform transaction value rose to KSh 29.5 billion.
Asset Quality and Capital Position
| Item | Q1 2025 | Q1 2024 | YoY Change |
|---|---|---|---|
| Total Assets | KSh 1.75T | KSh 1.68T | +4% |
| Net Loans | KSh 804.7 Bn | KSh 782.5 Bn | +3% |
| Customer Deposits | KSh 1.32T | KSh 1.23T | +7% |
| Govt. Securities | KSh 548.3 Bn | KSh 472.2 Bn | +16% |
| Borrowed Funds | KSh 72.9 Bn | KSh 126.0 Bn | –42% |
| Shareholders’ Equity | KSh 264.7 Bn | KSh 218.9 Bn | +21% |
Balance Sheet Overview (Q1 2025 vs Q1 2024)
Strategic Initiatives
Equity Group continues to advance its Africa Recovery and Resilience Plan (ARRP), leveraging partnerships with institutions like the AfDB, Microsoft, Mastercard, and the World Food Programme to digitise agriculture and expand financial inclusion.
Social and Sustainability Impact
- Education: 29,515 scholars supported under the Equity Leaders Program, with 113 on global scholarships.
- Climate: Over 35 million trees were planted, and 494,543 clean energy products were distributed. Over USD 200 million was extended to climate finance.
- Recognition: Named by IFC as the financial institution with the highest number of climate-related transactions globally.
Outlook
Despite the profit dip, Equity Group remains well-capitalized and strategically positioned for growth across East and Central Africa, with robust digital adoption, a diversified business model, and a strong focus on sustainability and social impact.
