Equity Group has posted a strong financial performance for the first half of 2025, with profit after tax rising 17% from Sh29.6 billion to Sh34.6 billion. The growth was supported by improved operational efficiency, reflected in a wider net interest margin of 8.3% and a lower cost-to-income ratio of 51.7%, indicating tighter cost control.
Total assets grew 3% to Sh1.8 trillion, while net loans increased 4% to Sh825.1 billion. Government securities surged 18% to Sh540.9 billion, signalling a strategic shift towards safer assets amid economic uncertainty. Deposits rose 2% to Sh1.3 trillion, maintaining the group’s strong liquidity position.
However, asset quality remains a concern. Non-performing loans (NPLs) edged up to 13.7%, driven by stress in the corporate and MSME segments, where NPL ratios climbed to 24.5% and 14.2% respectively.
Among its regional subsidiaries, Equity Bank Kenya led with a return on equity of 28.1%, up from 25.0% a year earlier, and a return on assets of 3.9%. The Democratic Republic of Congo subsidiary also performed strongly, posting a 23.5% return on equity.
South Sudan, however, swung from a Sh2.5 billion pre-tax profit in 2024 to a Sh200 million loss this year, weighed down by volatile economic conditions.
Despite such challenges, shareholders’ funds rose 25% to Sh276.1 billion, highlighting the bank’s resilience. The results point to cautious optimism, with strong profitability and balance sheet growth balanced against rising NPLs and instability in some regional markets.
