- Equity Group’s Pan-African expansion helps drive the lender lion’s share of assets and half of banking profits, as non-funded income reaches record levels in the six months to June 2026.
Equity Group Holdings has delivered a 32 per cent increase in half-year profit after tax to KSh45.5 billion (approximately $351.8 million) in the six months to June 2026, with regional subsidiaries outside Kenya now contributing 52 per cent of banking assets and 47 per cent of revenue, marking a structural shift in the lender’s earnings base.
During the half, profit before tax rose 39 per cent to KSh57.8 billion (about $447 million) for the six months ended June, up from KSh41.5 billion in 2025. The performance reflects a deliberate multi-year strategy to reduce reliance on the Kenyan market, which has long been the group’s traditional heartland.
Subsidiaries in Tanzania, the Democratic Republic of Congo and Rwanda delivered the strongest growth. Equity Bank Tanzania led with an 82 per cent jump in profit after tax to KSh2.0 billion, while Equity BCDC in the DRC posted a 30 per cent rise to KSh11.8 billion.
At the same time, Equity Rwanda’s earnings grew 12 per cent to KSh2.9 billion. The regional operations now account for 51 per cent of group deposits, 54 per cent of loans and 52 per cent of banking assets, according to the company.
By contrast, Equity Bank Kenya, which historically has been the group’s dominant engine, reported a 32 per cent profit increase to KSh25.7 billion, with balance sheet growth of 13 per cent. While the local unit remains the largest single entity, its relative contribution is diminishing as the group’s pan-African strategy gains traction.
Read also: Equity’s pan-African pivot pays off as regional arm drives half of record $582 million profit
Equity Group Non-funded income drives revenue mix
The group’s total income went up by 25 per cent to KSh124.9 billion, driven by a 36 per cent surge in non-funded income to KSh55.6 billion. Fee-based revenue, foreign exchange earnings and other transaction income now account for 44.5 per cent of total income, up from 40.8 per cent in the first half of 2025.
Net interest income, while still the largest revenue component, increased at a slower pace of 17 per cent to KSh69.3 billion. The divergence highlights the group’s accelerating transition from a traditional lender to a diversified financial services provider, with payments, trade finance and insurance increasingly shaping its earnings profile.
Equity Insurance Group, now positioned as a “third pillar” alongside banking and payments, reported a 24 per cent increase in gross written premiums to KSh6.4 billion, with profit before tax rising 34 per cent to KSh1.25 billion. Digital channels accounted for 79 per cent of policy distributions.
Dr. James Mwangi, Equity Group Managing Director and CEO.
Equity Group loan loss provisions fall
The group continued to strengthen its risk buffers, with gross non-performing loans declining 22.2 per cent to KSh108.4 billion. The NPL ratio improved to 9.5 per cent from 13.7 per cent a year earlier, while provision coverage rose to 70 per cent from 68 per cent. Loan loss provisions fell 6 per cent year-on-year to KSh6.5 billion.
The cost-to-income ratio improved to 48.6 per cent from 51.7 per cent, driven by customer migration to digital platforms, which now process 89.7 per cent of all transactions. Return on assets stood at 4.5 per cent, while return on equity reached 26.5 per cent.
The balance sheet expanded 20 per cent to KSh2.16 trillion, with customer deposits rising 21 per cent to KSh1.59 trillion and net loans growing 19 per cent to KSh981 billion. Shareholders’ funds increased 27 per cent to KSh350 billion.
Read also: Equity Group backs global investors eyeing DRC’s multi-billion-dollar frontier
Technology investment accelerates
The group has invested heavily in staff upskilling, with 82 per cent of employees completing a business-focused generative AI course and 55 per cent undertaking additional Huawei ICT Academy certifications. Some 406 staff have been admitted to Masters programmes in Financial Engineering and Applied AI at WorldQuant University.
Dr James Mwangi, Group Managing Director and CEO, said the results reflected the success of the group’s transformation agenda. “Equity’s half-year 2026 performance is the outcome of a multi-year transformation agenda focused on resilience, diversification, and technology enablement,” he said.
“The Group has repositioned its operating model, strengthened its regional presence, and invested heavily in digital and AI-enabled capabilities to build an institution equipped for the future.”
(1USD=KSh130)
