Equity Group Holdings has reported a strong start to 2026, posting a 24 percent increase in profit after tax for the first quarter as the regional financial services giant accelerated its technology-led transformation and expanded its footprint across Africa.
The Group announced that profit after tax rose to KSh19.1 billion in Q1 2026, up from KSh15.4 billion recorded during the same period last year, reflecting improved operational efficiency, stronger regional performance, and growing adoption of digital banking channels.
The results also showed significant balance sheet growth, with total assets rising by 16 percent to KSh2.04 trillion from KSh1.75 trillion. Customer deposits grew 13 percent to KSh1.48 trillion, while net loans increased by 9 percent, driven mainly by expansion in the retail, MSME, and public sector lending segments.
According to the Group, the performance demonstrates the success of a deliberate long-term strategy focused on building a diversified, technology-driven pan-African financial services institution.
Regional Subsidiaries Drive Growth
A major highlight of the quarter was the strong contribution from regional subsidiaries, which now account for 50 percent of Group banking profitability and 52 percent of total banking assets.
Equity Bank Tanzania recorded the fastest growth, with profit after tax surging by 150 percent. Equity Bank Rwanda posted a 36 percent increase, while EquityBCDC registered 32 percent growth.
Meanwhile, Equity Bank Kenya reported a 21 percent rise in profit after tax to KSh10.3 billion and maintained its leadership in the MSME banking segment by disbursing 36.2 percent of the KSh101 billion MSME loans issued in Kenya between January and March 2026.
The Group said the regional businesses are increasingly becoming a central pillar of its growth strategy, contributing more than half of assets, revenues, and profits across the banking business.
Digital Banking Now Dominates Transactions
Equity Group’s transformation strategy continues to be heavily anchored on digital banking and technology infrastructure.
The bank reported that 98.3 percent of all transactions are now taking place outside physical branches, with 89.5 percent processed through digital platforms. The Group currently serves 22.7 million customers supported by 86,910 agency outlets and 1.4 million merchants across the region.
Speaking on the results, Dr. James Mwangi said the Group’s performance reflects years of strategic investment in resilience, technology, and regional diversification.
“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology-led financial services Group. We are building a future-ready institution; scalable, secure, and impact-led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution,” he said.
The Group has also intensified investment in artificial intelligence and staff digital capacity building. Equity disclosed that 80 percent of Group employees have completed business-focused generative AI training, accumulating more than 20,000 hours of instruction.
In partnership with iamtheCODE and other technology institutions, the Group is also scaling AI, data analytics, and digital learning programmes for both staff and youth across Africa.
Improved Asset Quality and Lower Risk Exposure
The financial results further indicated improved asset quality and tighter risk management controls.
Non-performing loans declined from 14 percent to 10 percent year-on-year, while NPL coverage improved to 72 percent from 67 percent. Loan loss provisions fell by 18 percent as the quality of the loan portfolio improved.
The Group attributed the improvements to disciplined underwriting, enhanced analytics, stronger collection frameworks, and portfolio diversification across markets and sectors.
Operational efficiency also improved significantly, with the cost-to-income ratio declining to 50.6 percent from 54.2 percent, largely due to productivity gains, shared services, and migration of customers to digital channels.
Return on assets stood at 3.9 percent, while return on equity remained strong at 22.6 percent.
Insurance Business Emerges as Growth Driver
Beyond banking, Equity’s insurance business continued to gain momentum.
Equity Insurance Group recorded a 30 percent increase in gross written premiums to KSh4.5 billion, while profit before tax rose by 53 percent to KSh640 million.
The health insurance business generated KSh1.2 billion in premiums, while life and general insurance businesses contributed KSh2.7 billion and KSh600 million respectively.
The Group said insurance is now emerging as a significant third engine of growth alongside banking and payments.
Social Impact Programmes Expand Across Africa
The Group also highlighted the growing impact of the Equity Group Foundation across education, financial inclusion, healthcare, agriculture, and climate action.
Under its education programmes, the foundation currently supports 12,844 active high school scholars and has facilitated 91 new international university admissions valued at over USD18.6 million.
Its enterprise development initiatives have trained more than one million entrepreneurs and enabled over KSh416 billion in credit access to MSMEs across the region.
The foundation has also expanded climate and sustainability programmes, including tree planting initiatives that have surpassed 45.5 million trees across Africa.
Healthcare expansion through Equity Afya has also continued, with the network now operating 154 medical centres serving more than 4.9 million patient visits.
Expansion Towards 2030 Targets
Looking ahead, Equity Group said it remains focused on its Africa Recovery and Resilience Plan (ARRP), which aims to expand operations to 15 countries, grow its customer base to 100 million people, and deploy next-generation digital and AI-enabled financial systems across the continent.
The Group said it remains well-capitalised and adequately positioned to support future expansion, innovation, and transformation finance initiatives across Africa.
“As we progress toward our 2030 ambitions, we are evolving beyond traditional banking into a Transformation Finance Institution that mobilizes capital, connects ecosystems, and accelerates inclusive, sustainable prosperity across Africa,” Dr. Mwangi added.