Equity Group Holdings Plc has reported a strong first-quarter performance for 2026, underscoring the gains from its ongoing transformation into a resilient, technology-driven pan-African financial services group.
The lender’s Profit After Tax rose by 24 percent to Sh19.1 billion, supported by stronger balance-sheet quality, the use of digital banking channels, and rising contributions from its regional subsidiaries.
Equity’s balance sheet expanded by 16 percent to Sh2.04 trillion, reflecting sustained momentum across its markets.
Customer deposits grew by 13 percent, while net loans increased by 9 percent, pointing to continued customer confidence and steady economic activity in the region.
The performance was anchored on a growing customer base of 22.7 million, backed by a wide distribution network of 86,910 agency outlets and 1.4 million merchants.
The extensive footprint continues to reinforce Equity’s standing as one of the region’s leading integrated financial services providers.
The Group said its Q1 performance reflects a multi-year transformation agenda focused on resilience, diversification, and technology adoption.
Over time, Equity has restructured its operating model, deepened its regional presence, and increased investment in digital and AI-enabled capabilities aimed at building a future-ready institution.
Operational efficiency improved further during the quarter, with the cost-to-income ratio declining to 50.6 percent from 54.2 percent, largely driven by productivity gains, expanded shared services, and increased customer migration to digital channels.
Profitability indicators remained strong, with Return on Assets standing at 3.9 percent and Return on Equity at 22.6 percent.
Commenting on the results, Equity Group Managing Director and CEO Dr James Mwangi said the quarter’s performance reflects the progress made in transforming the institution into a diversified regional powerhouse.
“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology-led financial services Group. We are building a future-ready institution; scalable, secure, and impact-led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” said Dr Mwangi.
He added that the Group is positioning itself beyond traditional banking as it pursues long-term ambitions.
“As we progress toward our 2030 ambitions, we are evolving beyond traditional banking into a Transformation Finance Institution that mobilizes capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa,” he said.
Equity’s technology-led strategy continues to take deeper root across its operations, with customers increasingly adopting digital channels.
The Group reported that 98.3 percent of all transactions were conducted outside branches, while 89.5 percent were processed through digital platforms, reflecting strong customer preference for its digital ecosystem.
The lender’s technology organization, strengthened following the establishment of a dedicated Technology Group in the fourth quarter, has continued to modernise core banking systems, upgrade payments infrastructure, and enhance risk analytics.
On risk management, Equity reported continued improvement in asset quality, supported by tighter controls and portfolio diversification.
Non-performing loan coverage strengthened to 72 percent from 67 percent, while loan loss provisions fell by 18 percent.
The bank also recorded a notable reduction in non-performing loans, with the NPL ratio improving year-on-year from 14 percent to 10 percent.
Subsidiaries continue to drive growth
Regional subsidiaries continued to deliver strong growth accounting for 50 percent of Group banking profitability and 52 percent of total banking assets.
Equity Bank Kenya posted a 21 percent year-on-year increase in Profit After Tax to Sh10.3 billion from Sh8.5 billion in Q1 2025, maintaining its leadership in MSME banking.
The subsidiary disbursed 36.2 percent of the Sh101 billion MSME loans issued in Kenya between January and March 2026, highlighting continued focus on the SME segment.
In the Democratic Republic of Congo, EquityBCDC recorded a 32 percent rise in Profit After Tax to Sh5.0 billion. Equity Rwanda posted a 36 percent increase to Sh1.5 billion, while Equity Tanzania delivered standout performance, with profit rising by 150 percent to Sh1.04 billion.
Overall, the regional banking businesses contributed significantly across key metrics, accounting for 52 percent of assets, 51 percent of revenue, 54 percent of the loan book, and 50 percent of profit before tax.
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