Equity Group Holdings has reported a 32 per cent growth in profit after tax for the nine-month period ended September 30, 2025 driven by cheap deposits. The lender cut interest expenses on customer deposits by 15 per cent to Sh28.7 billion lifting net interest income by 16% to Sh93.6 billion.
The regional lender, which operates in Kenya, Uganda, Tanzania, Rwanda, DRC and South Sudan, reported a profit of Sh54.1 billion, up from the Sh40.9 billion reported in September 2024. The Kenyan unit was the driver of profit growth, contributing 35.3 per cent of the group’s profits. The Kenyan operation grew its profit before tax by 50 per cent to Sh35.3 billion compared to Sh23.5 billion reported during the same period last year.
The Group CEO, Dr. James Mwangi, said the Kenyan unit performed well despite shrinking balance sheet in a challenging environment due to operational efficiency. Equity Bank Kenya reduced its cost to income ratio to 47 per cent from 57 per cent a year ago.
The Group CEO, Dr. James Mwangi, told investors during the investor briefing:
“The cost-income ratio of Kenya has moved from 57 per cent to 47 per cent. What does it mean? That as at December, for every 100 shillings of revenue Kenya was making, It was spending 60. For every 100 shilling Kenya is making now, it is only spending 47 and keeping 53.”
Equity BCDC, the group’s subsidiary in Democratic Republic of Congo, came in second contributing 28% of the banking group’s pre-tax profits. The bank reported a 18 per cent growth in profit before tax to Sh17.7 billion compared to Sh15 billion reported a year earlier.
The group CEO, Dr. James Mwangi, speculated to investors that he expected the DRC unit to bigger than the the Kenyan unit by 2027.
“I bet by 2027, DRC might be bigger than Kenya.”
Uganda contributed Sh3.5 billion to banking group’s pre-tax profits, Rwanda (Sh5.5 billion), Tanzania (Sh1.9 billion) and South Sudan(Sh0.1 billion). In total, regional subsidiaries outside Kenya contributed 45% of the banking group’s profit before tax.
Equity Group Holdings share price has jumped by more than 10%, or Sh6.25, to Sh66.25 as of Friday, October 31, 2025 in the early trading session.
