NAIROBI — Equity Group has reported a KSh15.4 billion profit after tax for the first quarter of 2025 — a slight drop from KSh16 billion posted during the same period last year.
The 4% dip comes as the banking giant grapples with a tough economic environment across the region.
Still, Group CEO Dr. James Mwangi remains confident.
“We’ve delivered strong performance, particularly in our Kenyan business,” he told investors during the Q1 2025 briefing in Nairobi on Thursday. “We continue to focus on resilience and customer-centred innovation.”
Equity, which is the largest bank in East and Central Africa by market value, brought in a total income of KSh48.2 billion for the quarter, also reflecting a 4% year-on-year decline.
However, there were bright spots. Net interest income — the money the bank earns from lending — rose by 3% to KSh28.6 billion. The amount set aside to cover possible loan defaults dropped sharply by 44%, falling to KSh3.4 billion.
This suggests borrowers may be recovering, or that the bank is managing risk better.
Kenya Leads the Pack
Equity’s Kenyan branch, which is its largest operation, stood out with strong numbers. Deposits grew 7% to KSh792.7 billion. Non-interest income — which includes fees, commissions, and digital services — jumped 23% to KSh7.57 billion.
That boost helped lift the unit’s pre-tax profit by a hefty 50%, reaching KSh9.9 billion.
In financial terms, Kenya’s return on assets improved to 3.4%, while return on equity climbed to 26%. These are key markers of how efficiently the bank is using its resources.
Regional and Sector Strength
The group, which operates in seven countries including Uganda, Rwanda, DRC and South Sudan, also posted gains in its insurance business. Pre-tax profits from insurance rose by 27% to KSh414 million, up from KSh321 million.
Its foreign exchange trading platform, EazzyFX, recorded KSh29.5 billion in transaction value — up from KSh24.1 billion in the same quarter last year. The increase suggests rising demand for cross-border digital finance tools.
Analysts say the group’s pan-African strategy continues to buffer it against local shocks.
“While the group faces slower growth in some markets, their diversification helps absorb pressure,” said financial analyst Brian Otieno of Nairobi-based Insight Africa. “Kenya is holding firm, and digital services remain a key engine.”
Challenges Ahead
Still, Equity faces challenges. Sluggish economic recovery in some regional markets and shifting global rates could tighten conditions in the coming months.
Yet Mwangi appears unshaken.
“We are investing for the long term,” he said. “Our goal is to build a sustainable future for all our stakeholders.”
The full earnings report is now available on the bank’s website.
With Kenya’s financial sector watching closely, all eyes will be on how Equity navigates the rest of 2025.
