Equity Group’s profit soars 12% to Sh49Bn on regional growth
Equity Group CEO Dr. James Mwangi during the release of the regional lender's financial results on Thursday.
Regional subsidiaries of lender Equity Group powered the bank to realize 12 percent increase in net earnings to KES48.8 billion in the financial year ended December 31, 2024. The Board of Directors has proposed dividend payout of KES4.25 per share.
In an update on Thursday, the lender revealed that its units across the East African market accounted for nearly half or 49 percent of the Group's total assets and 54 percent of profit before tax, which stood at KES60.7 billion, reflecting a 17 percent increase.
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Disclosures released on Thursday show that Equity Bank Kenya, while still a major contributor, accounted for 46 percent of total revenue.
Equity Bank Rwanda revenue grew YoY by 36 percent, Tanzania by 20 percebt and DRC by 9 percent while the net earnings for Equity Bank Rwanda increased by 30 percent YoY, Tanzania by 107 percent, Uganda 186 percent and DRC by 29 percent, signaling to the expanding role of the lender's regional operations.
Equity Group CEO Dr. James Mwangi, said, “Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth.”
During the year under focus, customer deposits increased by 3 percent to reach KES1.4 trillion with the customer base growing to 21.6 million. The Group cut the provision for loan loss by 43 percent to to KES20.2 billion even as the stock of non-performing credit grew by 6.5 percent to KES121.9 billion.
"Equity Bank Kenya has in the past six months cut its base lending rate three times," said Dr. Mwangi, adding that, "the lowering of interest rates will reduce the cost of borrowing, offering businesses access to affordable credit."
Additionally, the Group's Life Assurance business continued to register strong growth with gross profit increasing by 58 percent to KES1.5 billion from the KES934 million reported in 2023.
"Encouragingly, our insurance premium financing solution has seen a significant 50 percent increase in uptake, reflecting our dedication to supporting customers through uncertain times as they prioritize protecting their health, life and assets," explained Dr. Mwangi.
