Equity Group continues to deliver solid financial results. This is underpinned by its strategic focus on diversification, innovation, and regional expansion. While releasing the full year 2024 results, Dr. James Mwangi, Equity Group’s managing director, and chief executive officer (CEO) said : “ We are proud of the resilience demonstrated by the group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group’s liquidity and capital position remains strong, positioning us to better support our customers in the years ahead.”
Growth
In the 2024 financial year, Equity Group achieved a profit after tax of Kshs. 48.8 billion, reinforcing the continued success of its diversified business model and prudent financial management. In the same vein, its profit before tax grew by 17% to Kshs 60.7 billion, while the earnings per share rose by 11% to Kshs 12.3.
The group’s total deposits grew to reach Kshs 1.4 trillion with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise. Additionally, its liquidity position remains strong, with cash and cash equivalents rising by 19% to Kshs 345 billion, while investment securities grew to Kshs 512 billion, contributing to an overall liquidity ratio of 57%.
This positions the group to effectively champion the Africa Recovery and Resilience Plan. This is a private sector led development plan spearheaded by Equity. It is aimed at catalyzing, capacitating, connecting, and financing enterprises and households across Africa. Beyond providing financial and technological tools, it empowers individuals, businesses, and communities through a clear framework for development, by building capabilities and mitigating risks, enabling them to leverage these tools effectively and efficiently to achieve their social, environmental, and economic ambitions.
Transformation
The Africa Recovery and Resilience Plan aspires to drive long-term transformation across the continent, relying on the support and active participation of diverse stakeholders. Strategic partnerships with development finance institutions, global implementation partners, and social institutions have been instrumental in delivering a wide range of social and commercial outcomes with lasting, sustainable results.
As part of these efforts, the group has also partnered with AfDB, Microsoft and Mastercard Corporation to digitize ten million customers in farming under the community pass initiative for the delivery of the MADE Alliance, further enhancing financial inclusion and digital accessibility across Africa; and with the World Food Programme to further capacitate small-holder farmers into agribusiness. The Group demonstrated commitment to its shareholders by proposing a dividend of Kshs 4.25 per share,a payout ratio of 34.5%, reinforcing its track record of delivering value to its shareholders. This is supported by a return on equity of 21.5% and a return on assets of 2.8%, both of which are well above industry averages.
As part of its ongoing transformation, Equity Group has continued to invest in technology, infrastructure, and diversification. In that regard, it has modernized its digital channels, which now process 86% of all transactions, enabling customers to access a seamless, digital first experience. Furthermore, ONE Equity, its integrated digital platform, allows customers to access a wide range of products and services under a single umbrella, enhancing cross-selling and customer engagement.
The value of business processed through Equity mobile year on year increased by 67% from Kshs 1.895 trillion to Kshs 3.174 trillion, while Equity online for business (EazzyBiz) increased by 21% from Kshs 3.165 trillion to Kshs 3.841 trillion. Additionally, the interoperable Pay With Equity for merchants increased by 14% from Kshs 1.884 trillion to Kshs 2.149 trillion. ATM increased by 21% from Kshs 398.6 billion to Kshs 481.4 billion.
