The financials results for the first quarter of 2025 have once again given insights on the performance of the two largest banks in East and Central Africa. The KCB Group vs Equity Group results show that KCB Group continues to be the largest lender while Equity Group comes in a close second.
In the first quarter, KCB’s net profit remain flat while Equity recorded a dip. Let us take a close look:
KCB announced a Sh16.54 billion net profit in the first quarter of the current financial year. This KCB Group Q1 2025 net profit came in flat from the Sh16.48 billion net profit that was recorded in the first quarter of 2024. This was equivalent to a 0.4 percent growth.
On the other hand, Equity announced Sh15.4 billion net profit for the first quarter of the year. This Equity Group Q1 2025 net profit was a drop of 4 percent when compared to the Sh16 billion net profit the Group realized in the same period in 2024. Profit before tax was down 8 percent to Sh18.7 billion from the Sh20.4 billion that was recorded the same quarter in the previous year.
KCB’s customer deposits stood at Sh1.4 trillion. This was a drop equivalent to a 4.9 percent decrease. On the other end, during the quarter, Equity’s customer deposits went up by 7 percent to Sh1.32 trillion.
Rejected: Mock U.S B1/B2 visa interview with former U.S visa officer
Equity’s total assets closed the three month period ended March 31 at Sh1.75 trillion while KCB’s total assets on the other hand increased by 1.9 percent to Sh2 trillion.
The stock of KCB’s gross non-performing loans closed the period at Sh233.29 billion from the previous Sh205.32 billion, while the non-performing loans ratio increased to 19.3 percent from 18.2 percent. Customer loans and advances closed the quarter under review at Sh1.02 trillion.
Equity’s net loans on the opposite end went up by 3 percent to Sh804.7 billion. The bank’s non-performing ration stood at 14 percent compared to the industry average of 17 percent.
Their forecasts…
The leaderships of the two lenders has forecasted a positive year ahead. However, it remains to be seen if their Q2 results will be as suppressed as the Q1 results have been.
******
“As we steer the remainder of the year, our focus is on leveraging the group’s scale, capabilities, people and partners, to deepen relationships and financial inclusion. We will continue to harness technology to enhance banking services and drive relevant products and services that contribute to economic growth, sustainability, and shareholder value,” KCB Group chief executive officer Paul Russo said.
******
“Despite the global uncertainties and geopolitical tensions that created a complex financial landscape, Equity remains resilient and focused on delivering value to all our stakeholders,” said Dr James Mwangi, the Group managing Director and Chief Executive Officer.
“Equity is strongly positioned across all our subsidiaries. As we continue our transformation journey, we see significant opportunities for sustained growth. We are a global brand, one of the strongest, not just in valuation but also in global rankings. We are open to partnering with development organizations to fund infrastructure, trade, and other key sectors.”
