Equity Group Posts 24% Profit Growth as Regional Subsidiaries Become Core Earnings Driver
Equity Group Holdings Q1 2026 Profit Rises 24% as African Subsidiaries Contribute Majority of Earnings
Equity Group Holdings posted a 24% increase in profit after tax to KSh 19.1 billion (approximately CDF 556.4 billion) for the first quarter of 2026.
The performance was driven largely by strong growth across its regional subsidiaries outside Kenya, marking a structural shift in the Group’s earnings base.
The Nairobi-listed banking group, which operates in six African countries, also recorded a 16% expansion in its balance sheet to KSh 2.04 trillion (CDF 59.4 trillion).
Growth was underpinned by a 13% rise in customer deposits to KSh 1.48 trillion (CDF 43.1 trillion) and a 9% increase in net loans, reflecting sustained credit demand across its markets.
A key highlight of the period was the increasing contribution of regional subsidiaries, which for the first time accounted for half of the Group’s total banking profit.
Operations outside Kenya now represent 52% of banking assets, 51% of banking revenues, and 54% of the loan portfolio.
This shift reflects Equity Group’s long-term strategy of diversifying away from its traditional home market and building a pan-African banking platform.
Performance across individual subsidiaries was broadly positive. Equity Bank Tanzania delivered the strongest growth, with profit after tax rising 150% to KSh 1.04 billion (CDF 30.3 billion).
Equity Bank Rwanda recorded a 36% increase in profit to KSh 1.5 billion (CDF 43.7 billion), while EquityBCDC in the Democratic Republic of Congo grew 32% to KSh 5.0 billion (CDF 145.7 billion). Equity Bank Kenya, the Group’s largest entity, posted more moderate growth of 21%, reaching KSh 10.3 billion (CDF 300.0 billion).
Operational efficiency also improved during the quarter. The cost-to-income ratio declined to 50.6% from 54.2% a year earlier, supported by productivity gains and a continued shift toward digital banking channels.
The Group reported that 98.3% of transactions are now conducted outside branches, with 89.5% processed through digital platforms, highlighting the scale of its ongoing digital transformation.
Asset quality strengthened significantly over the period. The non-performing loan (NPL) ratio improved from 14% to 10%, while the NPL coverage ratio rose to 72% from 67%.
As a result, provisions for loan losses declined by 18%, supporting stronger profitability metrics, including a return on equity of 22.6% and a return on assets of 3.9%.
The Group’s insurance business continued to expand as an emerging growth pillar. Equity Insurance Group reported a 30% increase in gross written premiums to KSh 4.5 billion (CDF 131.1 billion), while profit before tax rose 53% to KSh 0.64 billion (CDF 18.6 billion). Within the segment, health insurance generated KSh 1.2 billion (CDF 35.0 billion), life insurance contributed KSh 2.7 billion (CDF 78.7 billion), and general insurance added KSh 0.6 billion (CDF 17.5 billion).
The Group now serves 22.7 million customers across its footprint, supported by a distribution network of 86,910 agent banking points and 1.4 million merchant partners. Management reiterated its ambition to expand into 15 countries and grow its customer base to 100 million by 2030 under its Africa Recovery and Resilience strategy.
The Group also noted that it remains strongly capitalised, with sufficient financial strength to support continued regional expansion and investment in digital and diversified financial services.
