Equity Group Holdings Plc has delivered a landmark financial performance for the year ended 2025, posting a 55% increase in profit after tax as its regional subsidiaries particularly in Uganda and the Democratic Republic of Congo emerged as key growth engines in a rapidly diversifying earnings base, reports Pedson Mumbere.
The Group’s profit after tax rose to a record KSh 75.5 billion (approximately UGX 2.1 trillion), up from KSh 48.8 billion (about UGX 1.36 trillion) in 2024, underscoring the success of its long-term pan-African expansion strategy.
Notably, subsidiaries outside Kenya now contribute nearly half of total banking profitability, reflecting a structural shift in the Group’s revenue composition.
The Board has proposed a record dividend payout of KSh 21.7 billion (approximately UGX 610 billion), translating to KSh 5.75 per share, a 35.3 percent increase compared to the previous year signaling strong shareholder returns on the back of improved earnings.
Growth under the Group’s Africa Recovery and Resilience Plan was most pronounced in the Great Lakes region, where regional operations gained momentum.
While the Kenyan business posted a solid 63 percent rise in profit to KSh 39.2 billion, it was the international subsidiaries that drove the Group’s overall performance.
Uganda stood out as the fastest-growing market, with profit after tax surging by an exceptional 500 percent to KSh 3.6 billion (about UGX 100 billion), highlighting accelerating market penetration and improved operational efficiency.
In the Democratic Republic of Congo, profit grew by 58 percent to KSh 24.7 billion, supported by a 17 percent expansion in the loan book, while Tanzania recorded a 125 percent increase in profit to KSh 2.7 billion.
Dr. James Mwangi, Managing Director and CEO, attributed the performance to deliberate strategic transformation.
He noted that the Group’s regional subsidiaries now account for about half of banking profitability, reinforcing resilience derived from its diversified African footprint.
The Group’s balance sheet expanded by 9 percent to KSh 1.97 trillion (approximately UGX 55 trillion), with operational efficiency playing a critical role in profitability.
The cost-to-income ratio improved significantly to 51.0 percent from 58.2 percent, driven by aggressive digitisation.
Digital channels now dominate operations, with 98 percent of transactions conducted outside physical branches and 88.4 percent processed through mobile and digital platforms.
This shift has enabled the Group to scale its customer base to 22.4 million while lowering the cost-to-serve.
Beyond banking, non-funded income streams continued to strengthen earnings resilience. The insurance business recorded a 75 percent growth in gross written premiums, while profit before tax rose by 36 percent to KSh 2.0 billion.
At the same time, the Group maintained a strong focus on social impact, channeling KSh 99.5 billion (approximately UGX 2.8 trillion) through the Equity Group Foundation to support over 1.1 million scholars and nearly one million entrepreneurs across the region.
Looking ahead, the Group is targeting 100 million customers across 15 African markets by 2030. Mwangi emphasized that Equity is evolving into a transformation finance institution, leveraging artificial intelligence and integrated digital ecosystems to unlock trade, credit access, and inclusive growth across the continent.
