Regional lender Equity Group has reported a 32 percent increase in first-half net profit to KSh45.5 billion, driven by expanding subsidiaries and a shift toward non-interest income.

Profit before tax climbed by 39 percent to KSh57.8 billion for the six months ended June, from KSh41.5 billion a year earlier, according to results released at a Nairobi investor briefing on Wednesday.

Non-funded income, which comprises fees, commissions, foreign exchange and other transaction-based earnings, expanded by 36 percent to KSh55.6 billion, now accounting for 44.5 percent of total income against 40.8 percent reported in the same period in 2025.

Equity's revenue mix underscores an accelerating transformation at Kenya’s largest bank by assets: traditional net interest income rose by 17 percent to KSh69.3 billion, while total income expanded by 25 percent to KSh124.9 billion. 

During the half, Group balance sheet grew by 20 percent to KSh2.16 trillion, with customer deposits up 21 percent at KSh1.59 trillion and net loans rising 19 percent to KSh981 billion. Shareholders’ funds strengthened by 27 percent to KSh350 billion.

Subsidiaries performance

Equity subsidiaries outside Kenya now account for a majority of the group’s assets and deposits, with regional operations contributing 51 percent of deposits and 54 percent of loans, according to the company .

Equity Tanzania led regional performance with an 82 percent jump in profit after tax to KSh2 billion. Equity BCDC in the Democratic Republic of Congo reported a 30 percent rise to KSh11.8 billion, while Rwanda posted 12 percent growth to KSh2.9 billion.

Equity Bank Kenya, the group’s largest unit, grew profit by 32 percent to KSh25.7 billion, supported by 24 percent deposit growth and 8 percent loan expansion.

“The Group’s performance is unfolding against a backdrop of resilient regional economic growth,” said Group CEO Dr James Mwangi. “Kenya is projected to expand by 4.5 percent – 5 percent, the Democratic Republic of Congo by 5.6 percent, Tanzania by 5.9 percent, Uganda by 6.4 percent, Rwanda by 6.8 percent, and South Sudan by 20 percent.”

The group reported a notable improvement in asset quality, with non-performing loans declining to 9.5 percent from 13.7 percent a year earlier, returning to single-digit territory for the first time since 2021.

Provision coverage rose to 70 percent from 68 percent, while loan loss provisions fell 6 percent year-on-year. 

Insurance business

Equity Insurance Group continued its growth trajectory, with gross written premiums rising by 24 percent to KSh6.4 billion and profit before tax increasing 34 percent to KSh1.25 billion.

The insurance arm wrote KSh4.5 billion in life premiums, KSh1.2 billion in health and KSh0.6 billion in general insurance, distributing 79 percent of policies digitally. 

Non-banking subsidiaries collectively contributed 4.8 percent of group revenue, up from 4 percent a year earlier.

Equity continues to invest heavily in technology and human capital. The group reports that 82% of staff have completed a business-focused generative AI course.

“We are building a future ready institution; scalable, secure, and impact led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” Dr Mwangi said. 

“As we progress towards our Africa Recovery and Resilience Plan 2030 ambitions, we are evolving beyond traditional banking into an integrated tech enabled financial institution.”

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