Equity Group Holdings has posted a 32% increase in half-year profit after tax to Ksh45.5 billion, up from Ksh34.6 billion recorded in the same period last year.

The strong performance was driven by growth in lending, higher non-funded income and improved contributions from the Group’s regional subsidiaries.

Total income rose 25% to Ksh124.9 billion, while net interest income increased 17% to KSh69.3 billion. Non-funded income grew by 36% to Ksh55.6 billion, now accounting for 44.5% of total income.

The Group’s balance sheet expanded 20% to Ksh2.16 trillion, supported by a 21% increase in customer deposits to KSh1.59 trillion and a 19% rise in net loans to Ksh981 billion.

Equity Group CEO Dr James Mwangi attributed the results to the Group’s diversification strategy, regional expansion and continued investment in digital and AI-enabled services.

“We are building a future-ready institution, scalable, secure and impact-led,” Mwangi said.

Regional subsidiaries continued to drive growth, contributing 42% of the Group’s banking profits and 47% of banking revenue. Equity BCDC in the Democratic Republic of Congo recorded a 30% rise in profit to KSh11.8 billion, while Equity Rwanda grew 12% to Ksh2.9 billion. Equity Tanzania posted the strongest growth, with profit rising 82% to Ksh2 billion.

Equity Bank Kenya also recorded a 32% increase in profit after tax to Ksh25.7 billion, up from Ksh19.5 billion.

The Group’s digital transformation continued to gain pace, with 98.3% of transactions taking place outside branches and 89.7% processed through digital platforms.

Equity said its investment in technology and staff training is also expanding, with thousands of employees undergoing training in generative AI and other digital skills.

The Group’s non-performing loans improved from 13.7% to 9.5%, while the cost of risk fell to 1.4% from 1.7%, reflecting improved asset quality and risk management.

Equity Insurance Group also recorded growth, with gross written premiums rising 24% to Ksh6.4 billion and profit before tax increasing 34% to Ksh1.25 billion.

In a press statement the Group said it remains focused on its Africa Recovery and Resilience Plan 2030, which targets expansion into 15 countries, reaching 100 million customers and scaling digital and AI-enabled financial services across Africa.

                                                                                 APERIT FM, HII NI YETU