Equity Group Q1 Profit Down 8% on Declined Interest Income

Equity Group has reported a pre-tax profit of Ksh.18.7 billion, an 8 percent drop, for the first quarter of 2025, down from Ksh.20.4 billion in the same period last year, primarily due to a drop in interest income.

The regional lender, which operates in Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo (DRC), saw its net interest income fall 12% to Ksh.13.32 billion.

Equity Bank Kenya remained the group’s top performer, contributing Ksh.8.5 billion in profit after tax (PAT), or about 57% of the group’s total profit.

Loans remained steady at Ksh.421.5 billion, while deposits grew to Ksh.792.7 billion. However, non-performing loans (NPLs) rose to 19.0%.

Equity Bank Tanzania delivered the highest growth, with pre-tax profit rising 540% to Ksh.0.6 billion, driven by a drop in NPLs to 3.0% and robust non-funded income.

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The DRC operation posted a Ksh.4.7 billion pre-tax profit, maintaining resilience in local currency despite nominal declines.

Rwanda and Uganda contributed Ksh.1.1 billion and Ksh.1.2 billion, respectively.

“Equity is strongly positioned across all our subsidiaries. As we continue our transformation journey, we see significant opportunities for sustained growth,” said Dr. James Mwangi, CEO of Equity Group.

The group’s non-banking arm recorded Ksh.0.6 billion in PAT, accounting for 4.0% of overall earnings, up from 3.1% last year.

Insurance revenue more than doubled to Ksh.1.08 billion, led by Equity Life Assurance Kenya, which now commands a 16% market share in group credit life.