Regional lender Equity Group has posted a profit after tax of KES15.4 billion for Q1 2025, a 4 percent year-on-year decline—reflecting the impact of reduced non-funded income amid a volatile economic climate. 

Despite the dip, the Group cut its loan loss provisions by 44 percent to KES3.4 billion, signaling improved asset quality and credit risk management at the start of the current trading year.

While non-funded income dropped by 12 percent to KES19.6 billion, core banking operations remained steady. Net interest income rose 3 percent to KES28.6 billion, underpinned by a growing loan book and stable margins. 

Customer confidence in the brand continued to grow, with deposits climbing 7 percent to KES1.32 trillion and net loans rising 3 percent to KES804.7 billion, reinforcing the Group’s position as a strong financial partner across the region.

"We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape, where our financial strength provides the flexibility to seize opportunities as the regional economy presents diversified levers for growth," said Dr. James Mwangi, CEO, of Equity Group Holdings Plc.

He added, "This, coupled with the strength of our regional and non-banking subsidiaries, positions us to continue delivering sustainable growth and creating long-term value for our customers, communities, and shareholders." 

During the quarter, regional subsidiaries of the Nairobi Securities Exchange listed lender accounted for 47 percent of total assets, 48 percent of net loans, and 45 percent of profit before tax, with key markets DRC, Tanzania, and Rwanda showing growth in deposits and loans. 

"This regional performance reinforces Equity’s strategic positioning as a cross-border financial powerhouse and underpins its growing footprint across East and Central Africa," noted Dr. Mwangi.

The Group’s non-banking subsidiaries, including investment banking, fintech, and insurance, continued showing stellar performance. Insurance unit saw profit before tax increase by 27 percent to KES414 million in Q1 2025 from KES321 million during the comparable quarter.

Regional banking subsidiaries accounted for 47 percent of total assets, 48 percent of net loans, and 45 percent of profit before tax, with key markets including DRC, Tanzania and Rwanda, showing growth in deposits and loans.

In Tanzania, deposits went up by 14 percent, loans by 9 percent year on year, pushing up profit before tax by 540 during the quarter under focus.

Equity Kenya subsidiary posted a strong recovery, registering 7 percent growth in deposits to KES792.7 billion with total revenue up 19 percent, non-funded income increasing by 23 percent to KES7.57 billion which resulted to a 50 percent increase in profit before tax. 

EquityBCDC experienced a 9 percent YoY growth in customer loans to KES252.1 billion and 8 percent jump in deposits to KES468.4billion. The subsidiary is instrumental in financing priority sectors such as agriculture, manufacturing, and MSMEs, Group CEO, Dr. James Mwangi said.

[email protected]