Equity Group’s Q1 2026 profit jumps 24 percent to $150 million on regional growth

Equity Group, East Africa’s leading financial services group, reported a strong start to 2026, building on a full-year performance in 2025 that pushed profit above $555 million. The group, led by Kenyan banker James Mwangi, posted a 24 percent rise in profit after tax for the first quarter of 2026, underscoring steady gains across its regional banking operations.

Profit rose to KSh19.1 billion ($150 million) in the three months to March 2026, compared with KSh15.4 billion ($120 million) a year earlier, according to the group’s financial statement. Management attributed the increase to higher earnings across core banking activities, tighter cost control, and stronger contributions from regional subsidiaries. Total revenue growth was supported by both interest and fee-based income, pointing to a more balanced earnings mix.

Tanzania unit posts 150 percent profit surge

Net interest income increased to KSh43.8 billion ($338.4 million) from KSh41.9 billion ($323.8 million), reflecting steady loan growth and improved pricing across key markets. Non-interest income also rose to KSh22.3 billion ($171.2 million), up from KSh19.6 billion ($151.4 million), driven largely by digital transaction fees and increased customer activity outside traditional branches. The revenue streams helped offset pressure from a competitive lending environment.

Performance across subsidiaries remained a key driver of the quarter’s results. Equity Bank Tanzania, Equity Bank Rwanda, and Equity Bank Democratic Republic of Congo posted profit growth of 150 percent, 36 percent, and 32 percent, respectively. These gains highlight the group’s widening footprint beyond Kenya and its focus on scaling operations in markets with growing demand for formal financial services.

Efficiency metrics improved during the period, with the cost-to-income ratio easing to 50.6 percent from 54.2 percent a year earlier. The improvement reflects productivity gains, increased use of shared services, and a continued shift by customers to digital platforms. Return on assets stood at 3.9 percent, while return on equity was 22.6 percent, indicating steady capital efficiency and stable earnings quality.

Equity Group’s balance sheet expands 3.5 percent

Equity Group Holdings Plc said its longer-term focus is to evolve into what it describes as a “Transformation Finance Institution,” aimed at supporting capital flows across African markets. That strategy is already visible in customer behavior, with 98.3 percent of transactions taking place outside branches and 89.5 percent processed through digital channels.

The latest results point to activity across core markets, with lending growth and fee income offsetting margin pressures in the region. Equity Group said its customer base rose to 22.7 million, supported by a distribution network of 86,910 agency outlets and 1.4 million merchants across East and Central Africa. The bank operates in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo and is deepening its presence.

The group’s balance sheet expanded 3.5 percent driven by a 13 percent rise in customer deposits and a 9 percent increase in net loans. Total assets increased from KSh1.97 trillion ($15.21 billion) as of Dec. 31, 2025, to KSh2.04 trillion ($15.76 billion) as of Mar. 31, 2026, while shareholders’ funds rose to KSh326.5 billion ($2.52 billion) from KSh309.5 billion ($2.4 billion). Retained earnings also climbed to KSh278.5 billion ($2.15 billion) over the period.