Equity Group Holdings has reported a 32 per cent increase in profit after tax for the first half of 2026, supported by growth in customer deposits, lending, regional subsidiaries and digital transactions.
In results released on Wednesday, August 19, the financial services group announced that its net profit rose to Ksh45.5 billion from Ksh34.6 billion recorded during the corresponding period in 2025.
Profit before tax increased by 39 per cent, rising from Ksh41.5 billion to Ksh57.8 billion.
The lender’s total income grew by 25 per cent to Ksh124.9 billion, compared to Ksh100.2 billion in the first half of last year.
Net interest income rose by 17 per cent to Ksh69.3 billion, while non-funded income increased by 36 per cent from Ksh40.9 billion to Ksh55.6 billion.
Consequently, non-funded income accounted for 44.5 per cent of the group’s total income, up from 40.8 per cent in the same period last year.
Deposits and Loans Grow
Equity Group’s balance sheet expanded by 20 per cent to Ksh2.16 trillion from Ksh1.80 trillion.
Customer deposits increased by 21 per cent to Ksh1.59 trillion, while the net loan book grew by 19 per cent from Ksh825 billion to Ksh981 billion.
The growth in lending was recorded across the corporate, retail, micro, small and medium enterprises, and public-sector segments. Tanzania, the Democratic Republic of Congo and Uganda made the strongest contributions.
Shareholders’ funds grew by 27 per cent to Ksh350 billion.
The lender also reported an improvement in asset quality, with its non-performing loan ratio declining from 13.7 per cent to 9.5 per cent.
Non-performing loan coverage increased from 68 per cent to 70 per cent, while loan-loss provisions declined by six per cent. The group’s cost of risk improved from 1.7 per cent to 1.4 per cent.
Its cost-to-income ratio fell from 51.7 per cent to 48.6 per cent, reflecting higher productivity and increased use of digital channels.
Return on assets stood at 4.5 per cent, while return on equity reached 26.5 per cent.
Equity Bank Kenya Rebounds
Equity Bank Kenya recorded a 32 per cent increase in profit after tax, rising from Ksh19.5 billion to Ksh25.7 billion.
The Kenyan subsidiary’s assets grew by 13 per cent, supported by a 24 per cent rise in deposits and an eight per cent increase in loans.
The bank further recorded an 11 per cent quarter-on-quarter increase in lending—its first double-digit quarterly loan growth since the third quarter of 2021.
Equity said its Kenyan unit disbursed 36 per cent of the Ksh101 billion in loans issued to MSMEs in the country between January and March 2026.
The subsidiary reported a return on average assets of 4.8 per cent and a return on average equity of 34.7 per cent.
Regional Subsidiaries Boost Earnings
Subsidiaries outside Kenya continued to account for a growing share of the group’s business.
The regional operations contributed 42 per cent of banking profits, 47 per cent of revenue, 51 per cent of deposits, 54 per cent of loans and 52 per cent of banking assets.
Equity BCDC in the Democratic Republic of Congo posted a 30 per cent increase in profit after tax to Ksh11.8 billion.
Equity Tanzania’s profit rose by 82 per cent to Ksh2 billion, while Equity Rwanda recorded a 12 per cent increase to Ksh2.9 billion.
Equity Group Managing Director and Chief Executive Officer James Mwangi attributed the performance to the lender’s regional diversification and investment in technology.
“The group’s half-year 2026 performance is the outcome of a multiyear transformation agenda focused on resilience, diversification and technology enablement,” Mwangi stated.
He added that Equity had strengthened its regional presence and invested in digital and artificial intelligence capabilities.
Shift to Digital Banking
According to the group, 98.3 per cent of all customer transactions were completed outside branches, with digital platforms processing 89.7 per cent.
Equity currently serves 23.3 million customers through platforms including Equity Online, Eazzy FX, the Equity Mobile App, *247# and Equitel.
Its physical and assisted network comprises 410 branches, 886 ATMs, 92,572 agency outlets and approximately 1.4 million merchants.
The group disclosed that 82 per cent of its employees had completed a business-focused generative artificial intelligence course.
Staff members collectively completed 119,980 hours of guided AI instruction, while 406 employees were admitted to master’s degree programmes in financial engineering and applied AI at WorldQuant University.
Equity Insurance Group also recorded a 24 per cent increase in gross written premiums. The insurance unit’s profit before tax rose by 34 per cent year-on-year.
Mwangi stated that the group would continue expanding beyond conventional banking as it pursues its Africa Recovery and Resilience Plan 2030.
“We are evolving beyond traditional banking into an integrated, technology-enabled financial institution that mobilises capital, connects ecosystems and accelerates inclusive, sustainable prosperity across Africa,” he remarked.
