After $555 million profit, Equity targets Angola, Zambia, Mozambique acquisitions

After reporting more than $555 million in profit for 2025, Equity Group is setting its sights on a fresh phase of regional expansion, with Angola, Zambia and Mozambique emerging as its next potential markets as the lender builds on years of steady cross-border growth.

The Kenyan bank, led by Group Chief Executive Officer James Mwangi, posted a net profit of Ksh71.96 billion ($555.37 million) for the year ended December 2025, up from Ksh46.55 billion ($359.22 million) a year earlier. The 54.6 percent increase reflects stronger contributions from its regional subsidiaries and improved income across its core banking businesses.

Southern Africa expansion targets Angola, Zambia, Mozambique 

Attention is turning beyond East Africa. The group is considering acquisitions in Southern Africa, with Angola, Zambia, and Mozambique central to its next move. The strategy is tied to trade flows and infrastructure links across the continent, particularly the Lobito transport corridor connecting Angola’s Atlantic coast to copper and cobalt belts in the DRC and Zambia. 

Mwangi said the bank’s expansion is being shaped by customer activity and regional trade rather than geography alone. “It’s not just about countries; it’s about following our customers and following trade routes,” he said, adding that Mozambique and Zambia are economically linked in ways that make a standalone entry less practical.

Angola has become a priority target after earlier plans to enter Ethiopia slowed due to regulatory limits on foreign ownership in the banking sector. Angola offers a clearer path through a potential majority stake in a local lender in Luanda, a deal Equity Group hopes to advance in the near term market conditions in Africa. 

Equity Group profits shift regionally

If completed, Mozambique would become Equity Group’s sixth subsidiary outside Kenya, reinforcing its wider plan to operate in 15 African markets by 2030 under its Africa Recovery and Resilience framework. It has operations in Uganda, Tanzania, Rwanda, South Sudan and the Democratic Republic of Congo, which contributed 45.5 percent of total earnings in 2025.

The results show how far the business has shifted from a Kenya-focused lender to a regional financial group. Equity Group now generates nearly half of its profits outside its home market, reflecting stronger lending activity, fee income and investment returns across subsidiaries.

Interest income hit $1.34 billion, up 2.9 percent 

Equity Group’s interest income in 2025 rose 2.9 percent to Ksh173.64 billion ($1.34 billion), while non-interest income climbed 6.7 percent to Ksh90.8 billion ($700.8 million), supported by higher fees, commissions, and dividend earnings. Together, these streams helped lift overall performance despite uneven economic conditions across some of its markets.

The balance sheet also expanded. Customer deposits rose to Ksh1.46 trillion ($11.23 billion), while total assets increased 9.22 percent to Ksh1.97 trillion ($15.21 billion), supported by growth in loans and investment securities. Liquidity remained strong at 64.7 percent, well above regulatory requirements. Shareholders are also set for higher returns. The board has recommended a dividend of Ksh5.75 ($0.04) per share, up from Ksh4.25 ($0.03) in 2024.