Equity Group’s Nine-Month Profit Hits Sh. 40.9 Billion, Driven by Regional Expansion

Equity Group Holdings reported a strong nine-month performance with a profit after tax of Sh. 40.9 billion, marking a 13 percent rise from Sh. 36.2 billion in the same period last year. This increase highlights Equity Group’s continued growth, largely powered by its expanding presence in regions outside of Kenya, where its subsidiaries now contribute 51 percent of the total gross profit.

The group achieved this profit from a pre-tax figure of Sh. 51 billion, representing an 11 percent improvement over the prior year. Dr. James Mwangi, Equity Group's managing director and CEO, attributed much of this growth to the performance of the bank’s subsidiaries outside Kenya. Notably, the Equity BCDC unit in the Democratic Republic of Congo (DRC) has played a critical role in driving these results. Additionally, nearly half of Equity’s overall balance sheet, or 48 percent, is now located outside of Kenya, underscoring the group's regional growth strategy.

During the period under review, customer deposits rose by 9 percent to Sh. 1.32 trillion, reflecting the group's ability to attract and retain customer trust and investment. Total assets saw a slight increase, reaching Sh. 1.7 trillion, maintaining the growth trajectory witnessed in recent years. This steady rise follows a significant 24 percent growth in assets in the previous period, from Sh. 1.4 trillion in 2022 to Sh. 1.7 trillion in 2023.

While net loans decreased by 5 percent to Sh. 800.1 billion, the bank reduced its loan loss provision by 33.2 percent, bringing it down to Sh. 12.7 billion. This reduction reflects an improvement in the quality of its loan portfolio. On the expense side, operating costs rose by 7.4 percent, totaling Sh. 90.7 billion, while operating income saw an 8.7 percent increase, reaching Sh. 141.7 billion.

Dr. Mwangi emphasized the bank’s commitment to financial inclusion, noting that Equity has developed robust systems to support customer success. "We have built a model where everyone has access to financial opportunities, breaking barriers that previously excluded many from economic activities," he explained.

He further highlighted East Africa’s potential, calling it one of the world’s fastest-growing regions with an average GDP growth of 5.6 percent. Dr. Mwangi expressed optimism about Equity Group’s future in this vibrant market, seeing immense opportunities for sustained growth and expansion.

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