Equity Group Holdings Plc has posted a profit before tax (PBT) of Kshs 60.7 billion, for the financial year 2024, representing a 17 percent growth compared to the previous year. The bank’s profit after tax (PAT) rose by 12 percent to Kshs 48.8 billion, driven by strategic diversification, innovation, and regional expansion.
Announcing the results, Dr. James Mwangi, Managing Director and CEO of Equity Group, attributed the strong performance to the Group’s resilience and ability to navigate a challenging global economic landscape. He emphasized that Equity’s strong liquidity and capital buffers positioned it well, for sustainable growth and to support customers.
Key Financial Highlights
Earnings per share (EPS) increased by 11 percent to Kshs 12.3.
Total deposits grew to Kshs 1.4 trillion, with the customer base reaching 21.6 million.
Liquidity position remained strong, with cash and cash equivalents rising by 19 percent to Kshs 345 billion.
Asset quality improved by 100 basis points, with the Non-Performing Loan (NPL) ratio at 12.2 percent, significantly lower than the industry average of 16.4 percent.
Loan loss provisions stood at Kshs 20.2 billion, reflecting a prudent approach to risk management.
The Group also proposed a dividend of Kshs 4.25 per share, translating to a payout ratio of 34.5 percent, reinforcing its commitment to shareholder value.
Regional Expansion and Digital Growth
Equity’s regional subsidiaries continue to play a crucial role in the Group’s overall performance, contributing 49 percent of total assets and 54 percent of profit before tax. In 2024, Equity Bank Rwanda’s revenue grew by 36 percent, Tanzania by 20 percent, and the Democratic Republic of Congo (DRC) by 9 percent.
The Group’s digital transformation is also paying off, with 86 percent of all transactions now processed digitally. Key highlights include:
Equity Mobile transactions increased by 67 percent, reaching Kshs 3.174 trillion.
Equity Online for Business (EazzyBiz) transactions grew by 21 percent to Kshs 3.841 trillion.
Merchant transactions (Pay With Equity – PWE) rose by 14 percent to Kshs 2.149 trillion.
Insurance and Sustainability Initiatives
Equity Group continues to expand its footprint in the insurance sector. Its Life Assurance business posted a 58 percent growth in profit before tax, reaching Kshs 1.5 billion. The bank also acquired a general insurance license, allowing it to provide comprehensive financial protection solutions for individuals and businesses.
On the sustainability front, Equity has made significant strides in climate finance, disbursing over USD 200 million to support green projects. The Group has also planted 35 million trees and distributed 466,975 clean energy products to households and institutions.
Commitment to Social Impact
Through its Equity Leaders Program (ELP), the bank has supported 29,515 scholars, with 113 receiving full scholarships to global universities. The Equity Afya Clinics have recorded over 3.3 million patient visits, while the bank’s social protection programs have reached 5.79 million individuals, disbursing Kshs 164.2 billion in cash transfers.
Outlook for 2025
Equity Group remains optimistic about future growth, focusing on regional expansion, financial inclusion, and digital innovation. Dr. Mwangi reaffirmed the bank’s commitment to driving economic empowerment and resilience across Africa, positioning the Group as a leader in sustainable banking.
With its strong financial position, robust risk management, and commitment to innovation, Equity Group is well-prepared to navigate market dynamics while continuing to deliver value to shareholders, customers, and communities.