What Drove Equity Group’s Strongest Quarter in History
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Equity Group has posted its strongest quarter in history, delivering a profit before tax of Kshs.22.9 billion in Q2 2025. This performance exceeded the Group’s four-year average quarterly profit before tax of Kshs.14.8 billion.
For the six months ended June 2025, Equity Group’s profit before tax stood at Kshs.41.5 billion, with profits after tax rising 17% to Kshs.34.6 billion from Kshs.29.6 billion in the same period last year.
The growth was supported by a 9% increase in net interest income following an 18% decline in interest expenses, and a 2% reduction in total costs, driven by a 34% drop in loan loss provisions.
Recovery Across Subsidiaries
Equity Bank Kenya Half Year 2025 profit after tax grew by 40%, with net interest margin improving to 7.5% from 6.5%, return on assets increasing to 3.9% from 2.8%, and return on equity rising to 28.1% from 25%.
Equity Bank Uganda Half Year 2025 saw a 40% rise in profit after tax, with return on assets growing to 3.4% from 2.2% and return on equity climbing to 25.1% from 17.1%.
Equity Bank Tanzania registered the highest growth rate among subsidiaries at 75%, with net interest margin increasing to 8.7% from 8.1%, return on assets advancing to 4% from 2.3%, and return on equity improving to 27% from 17.5%.
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Equity Bank DRC Half Year 2025 saw a 22% rise in profit after tax, with net interest margin moving to 7.1% from 6.9%, return on assets up to 3.1% from 2.6%, and return on equity increasing to 23.5% from 21.9%.
In Rwanda, the Group recorded the highest return on assets across the network at 4.1% and a return on equity of 29.6%, alongside a cost-to-income ratio of 35.8%.
Diversified Operations and Regional Contribution
Regional banking businesses now account for 49% of the Group’s deposits, 50% of the loan book, and 50% of banking revenue. In addition to banking, Equity Group Half Year 2025 earnings were bolstered by three insurance lines, life, general, and health, enhancing diversification and resilience.
Balance Sheet Growth
The Group’s total assets rose by 3% to Kshs.1.8 trillion, with net loans up 4% to Kshs.825.1 billion and customer deposits growing 2% to Kshs.1.32 trillion. Shareholders’ funds recorded a 25% increase, while earnings per share rose 16% to Kshs.8.8 from Kshs.7.6.
The Equity Group Half Year 2025 loan deposit ratio stood at 62.5%, supported by strong capital buffers, 16.5% core capital to risk-weighted assets and 18.1% total capital to risk-weighted assets, and a liquidity ratio of 58.6%.
CEO’s Outlook
Commenting on the results, Equity Group Managing Director and CEO James Mwangi said the execution of the Group’s business plan across agriculture, mining, manufacturing, trade, and SMEs is beginning to transform both the balance sheet and profit-and-loss structures.
“Continued execution has resulted in transformation of the balance sheet structure and the resultant profit and loss structure creating resilience in performance,” Mwangi noted.
Consistent Quarter-on-Quarter Growth
The Group’s four-year transformation journey has delivered back-to-back strong quarters in 2025, with Q1 profit before tax at Kshs.18.6 billion and Q2 at Kshs.22.9 billion, both above the long-term quarterly average despite muted loan growth, geopolitical uncertainty, and ongoing operational changes.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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