Equity Group H1 2025: Profit Up 17 Percent To KES 34.6B As Subsidiaries And Insurance Lift Earnings

Equity Group has posted a 17 percent rise in half-year profit after tax to KES 34.6 billion, from KES 29.6 billion a year earlier. Earnings per share increased 16 percent to KES 8.8. Management said the performance reflects a four-year transformation programme that has overhauled systems, governance and go-to-market execution.

Headline numbers

Net interest income grew 9 percent after an 18 percent decline in interest expense. Total costs fell 2 percent, helped by a 34 percent reduction in loan loss provisions. On the balance sheet, the loan book expanded 4 percent to KES 825.1 billion, customer deposits rose 2 percent to KES 1.32 trillion, and total assets increased 3 percent to KES 1.8 trillion. The loan to deposit ratio closed at 62.5 percent, with capital ratios of 16.5 percent core and 18.1 percent total, and a 58.6 percent liquidity ratio.

Quarterly momentum was strong. Equity reported KES 22.9 billion profit before tax in Q2 2025 and KES 18.6 billion in Q1 2025, both above the four-year quarterly average of KES 14.8 billion.

For context on last year’s base, see our 2024 half-year wrap. Equity Group H1 2024 results.

Regional subsidiaries now drive half the banking business

Regional units contributed 49 percent of banking deposits, 50 percent of the loan book, 48 percent of total banking assets and 50 percent of banking revenue. They also delivered 46 percent of banking profit before tax and 43 percent of profit after tax.

Country highlights

• Kenya: Profit after tax rose 40 percent to KES 19.5B. Net interest income increased 18 percent to KES 32.8B, as interest expense fell 29 percent to KES 18.3B. Shareholders’ equity grew 22 percent to KES 154.6B.
• DRC: Profit after tax was up 22 percent to KES 9.1B. Loans rose 13 percent to KES 275.4B, funded by reallocation from cash and equivalents. Equity increased 28 percent to KES 82.6B.
• Uganda: Profit after tax climbed 40 percent to KES 1.9B. Deposits grew 5 percent to KES 96.8B.
• Rwanda: Total assets up 21 percent to KES 130.1B. Deposits up 22 percent to KES 94.7B. Loans up 23 percent to KES 56.1B.
• Tanzania: Profit after tax advanced 75 percent to KES 1.1B. Loans increased 19 percent to KES 31.3B.

See our archive on Equity’s Rwanda expansion for background. COGEBANQUE acquisition.

Asset quality and risk costs

The Group non-performing loan ratio measured 13.7 percent in H1 2025. That is higher than 12.9 percent in H1 2024 but better than 14.0 percent in Q1 2025. IFRS NPL coverage stood at 68.2 percent. Cost of risk eased to 1.7 percent from 2.6 percent year on year.

Insurance build-out gathers pace

Equity now holds three insurance licenses, for life, general and health. The Insurance Group balance sheet grew 40 percent to KES 31.48B, with profit after tax up 27 percent to KES 660M.

• Life insurance: Gross written premiums increased 58 percent to KES 3.8B. Net insurance and investment revenue rose 18 percent to KES 953M. Profit before tax grew 20 percent to KES 890M. Insurance contract liabilities reached KES 23B. Reported returns were 40.7 percent ROE and 4.7 percent ROA.
• General insurance: In the first six months of operations, gross written premiums totalled KES 1.36B, generating KES 640M in insurance revenue and KES 32M profit before tax.

For the origins of the insurance pivot, revisit our launch coverage. Equity Life Assurance launch.

Digital channels remain dominant

Management said more than 98 percent of transactions occur outside branches, with 87.4 percent on digital channels. The non-banking cluster of technology and insurance contributed 1.9 percent of Group assets, 4 percent of revenue and 3.8 percent of profit before tax, with 42.4 percent ROE.

Earlier milestones in Equity’s channel migration are in our 2022 coverage. USSD *247# now across all networks.

Foundation programmes and sustainability

Equity Group Foundation reported USD 715 million in cumulative social and sustainability investments. The Equity Leaders Program has supported 29,515 university scholars, with 1,061 placements at global universities and 9,700 paid internships. The Group reported 520,549 clean energy products distributed and 36.4 million trees planted. Climate finance exceeds USD 200 million. Equity Afia has expanded to 139 clinics with 3.98 million patient visits.

Outlook

Equity is executing a 2030 plan mapped to the Africa Recovery and Resilience Plan. The Group targets presence in 15 countries and 100 million customers by 2030. In the near term, management pointed to capital and liquidity headroom, asset reallocation from cash to higher-yielding loans, and continued focus on regional scale and insurance penetration.