By Mulengera Reporters
Equity Group whose headquarters are in Kenya has reported stronger performance from its regional subsidiaries, with new financial results showing that nearly half of its profit before tax in the first quarter of the year 2025 came from operations outside Kenya.
The bank’s financial statement shows that subsidiaries in the Democratic Republic of Congo (DRC), Rwanda, and Tanzania now contribute 45% of profit before tax and 47% of the Group’s total assets, pointing to a shift that has been taking shape quietly over the last few years.
DRC’s Equity BCDC, which has become central to the Group’s Africa Recovery and Resilience Plan, posted UGX 12.9 trillion (Kshs 468.4 billion) in customer deposits and a loan book of UGX 6.9 trillion (Kshs 252.1 billion). The subsidiary continues to finance key sectors including agriculture, manufacturing, and small businesses.
Tanzania also showed momentum, with deposits growing by 14% and lending increasing by 9%. Profit before tax rose by 540%, significantly boosting the Group’s earnings from the region. In Rwanda, positive growth was also recorded.
Kenya remains Equity Group’s home base and still contributes more than half of total revenues. However, the pace of contribution from outside markets suggests the Group’s future could be more regional than domestic.
Group Managing Director and CEO Dr. James Mwangi said the numbers reflected a balanced approach.
“We are seeing resilience across our footprint, and the diversification of income and assets is now supporting overall performance,” he said.
In Kenya, the bank reported growth in deposits to UGX 21.8 trillion (Kshs 792.7 billion) and a 23% rise in non-funded income, which helped boost profit before tax by 50%, with the return on equity in the Kenyan unit standing at 26%.
Regionally, the Group has used a mix of organic growth and local adaptation to build relevance in new markets, partnerships with MasterCard, Microsoft, and the African Development Bank are supporting digital agriculture solutions, while collaboration with the World Food Programme is helping build smallholder capacity in DRC.
The regional subsidiaries now control 48% of the Group’s loan book, together, giving Equity group an expanded footprint that is proving useful in absorbing economic pressure and broadening sources of income.
With operations in six countries and partnerships spanning public and private sectors, Equity group is increasingly positioning itself as a Pan-African lender. But the work of integrating cross-border services remains ongoing, especially in markets with complex regulatory environments. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
