Equity Group Posts Shs553 Billion Profit for Three Months as Digital Strategy Drives Regional Expansion

By Mulengera Reporters

Equity Group Holdings has reported a strong first quarter performance for 2026, posting a profit after tax of KSh19.1 billion (about Shs553 billion), up from KSh15.4 billion (about Shs446 billion) recorded during the same period last year, driven by digital transformation, regional expansion, and improved operational efficiency.

The Group’s Q1 2026 financial results, released in Nairobi on May 19, showed that the lender’s balance sheet expanded by 16 percent to KSh2.04 trillion (approximately Shs59.2 trillion), compared to KSh1.75 trillion (about Shs50.8 trillion) in Q1 2025. Customer deposits also grew by 13 percent to KSh1.48 trillion (about Shs42.9 trillion), while net loans rose by 9 percent, supported largely by growth in retail banking, MSMEs, and public sector lending.

The lender attributed the performance to sustained customer confidence and increasing economic activity across its regional markets. Equity Group currently serves 22.7 million customers through a vast distribution network of 86,910 agency outlets and 1.4 million merchants across East and Central Africa.

Speaking during the Q1 2026 Investor Briefing event in Nairobi- Kenya, Equity Group Managing Director and CEO Dr. James Mwangi said the results demonstrate the success of the bank’s deliberate transition into a diversified pan-African financial services institution powered by technology and innovation.

“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology-led financial services Group,” Mwangi said. “We are building a future-ready institution anchored in digital capabilities, staff upskilling, and disciplined execution.”

The Group revealed that digital banking continues to dominate customer transactions, with 98.3 percent of all transactions occurring outside physical branches and 89.5 percent processed through digital channels. Equity has also intensified investments in artificial intelligence, payments infrastructure, and data analytics to strengthen efficiency, customer experience, and risk management.

As part of the digital transition, the bank disclosed that 80 percent of Group staff have completed generative AI training, accounting for over 20,000 hours of instruction. Additional technology skills programmes are being implemented through partnerships with iamtheCODE, Huawei ICT Academy, and WorldQuant University.

Operational efficiency improved significantly during the quarter, with the Group’s cost-to-income ratio dropping to 50.6 percent from 54.2 percent in the previous year. Return on assets stood at 3.9 percent, while return on equity reached 22.6 percent, highlighting strong profitability and effective capital deployment.

Regional subsidiaries continued to play a major role in driving growth. Equity Bank Tanzania recorded the highest increase in profit after tax with 150 percent growth, while Equity Bank Rwanda and Equity Bank DRC posted increases of 36 percent and 32 percent respectively. Regional subsidiaries now account for 50 percent of the Group’s banking profitability and 52 percent of total banking assets.

Meanwhile, Equity Bank Kenya registered a 21 percent rise in profit after tax to KSh10.3 billion (about Shs299 billion), up from KSh8.5 billion (approximately Shs246 billion) in Q1 2025. The bank also maintained its leadership in MSME financing, disbursing 36.2 percent of the KSh101 billion (about Shs2.9 trillion) MSME loans issued in Kenya between January and March 2026.

The Group’s insurance business also posted impressive growth. Equity Insurance Group recorded a 30 percent increase in gross written premiums to KSh4.5 billion (about Shs130 billion), while profit before tax rose by 53 percent to KSh640 million (around Shs18.6 billion).

Equity also highlighted the growing impact of the Equity Group Foundation, which continues to support education, healthcare, agriculture, climate action, and financial inclusion programmes across Africa. The Foundation currently supports more than 12,800 scholars and has facilitated access to over KSh416 billion (about Shs12 trillion) in credit for MSMEs.

Under its long-term 2030 strategy, Equity Group plans to expand operations to 15 countries, serve 100 million customers, and deepen the use of AI-enabled systems to accelerate financial inclusion and economic transformation across Africa. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).