Equity Group recorded a profit after tax of Kshs 54.1 billion in the third quarter of this year. This performance was underpinned by diversified and growing revenue streams, enhanced efficiency, and strong regional contributions as well as a strong recovery of the Kenya banking business.
The lender has developed and mapped its 2030 strategic plan to anchor the Africa Recovery and Resilience Plan (ARRP), with an ambition to have a presence in fifteen countries, while serving a hundred million customers by 2030. This ambition has necessitated the evolution of its core pillars, key enablers, and critical success factors.
Governance and leadership continue to strengthen, focusing on capacity, competence, transparency, and experience. Additionally, systems and infrastructure have been fully replaced with scalable, next-generation, fourth industrial revolution technologies that are digital, machine learning–enabled, and based on generative artificial Intelligence. Applications that leverage the capabilities of these systems and infrastructure, with inbuilt enhanced security and innovations, are being deployed. By the same token, a go-to-market strategy has been developed for the roll-out of these transformational capabilities, delivered by a modern product house to enhance customer value propositions and solutions.
Segmented market
This allows the group to serve a more diverse and segmented market on the basis of industries, sectors, demographics, and customer-specific status. By the same token, its organizational culture is undergoing transformation to embed customer centricity and market responsiveness. Commenting on this performance, Equity Group Managing Director and CEO, Dr. James Mwangi said : “The execution of the strategic business plan has started to reflect on the balance sheet and performance of the group in agriculture, mining, manufacturing, trade and investment, and small and medium enterprises (SMEs) that populate the eco-systems of the formal sector in these value chains and is likely to significantly and increasingly transform the structure and performance of the group.”
Growing profit
The performance was marked by a 32% year-on-year increase in profit after tax, reaching Kshs 54.1 billion up from Kshs 40.9 billion, alongside strong profitability ratios with return on average equity at 26.4% and return on average assets at 4.1%. The group demonstrated effective revenue diversification, as evidenced by a 16% growth in net interest income and 3% growth in non-funded income. It also achieved improved efficiency, with the cost-to-income ratio significantly reduced to 50.6% from 55.1%, while strong asset quality was maintained through an increase in non-performing loans coverage to 71.4% and a contained cost of risk at 1.9%. “Our quarter three 2025 performance reflects the strength of our diversified tri-engine business model, operational efficiency, and continued commitment to transforming lives,” further said Dr. Mwangi.
Diversification
On business diversification, the group’s growth in the insurance industry is transforming it into an integrated financial services provider, that is powered by technology. It has currently secured three underwriting licenses for life insurance, general insurance, and health insurance. Equity Insurance Group registered a 36% growth in profit before tax to Kshs.1.46 billion up from Kshs. 1.07 billion in the previous year. This growth is supported by a 71% increase in gross written premiums of Kshs. 6.55 billion up from Kshs. 3.83 billion. Insurance revenue grew by 57% to Kshs.2.46 billion up from Kshs. 1.57 billion in the previous year, while the balance sheet grew by 36% to Kshs.32.1billion up from Kshs. 23.7 billion.
