EQUITY GROUP RECORDS HISTORIC RESULTS REPORTING A 55% GROWTH IN PROFIT AFTER TAX OF KSHS 75.5 BILLION, UNDERSCORING THE SUCCESS OF ITS STRATEGIC TRANSFORMATION.

• The proposed dividend payment of 21.7 billion Kenyan shillings equates to 5.75 Kenyan shillings per share, representing a 35.3% dividend growth (2024: 16 billion Kenyan shillings, 4.25 Kenyan shillings per share).

• Equity Bank Kenya's net profit increased by 63% to 39.2 billion Kenyan shillings (2024: 24.1 billion Kenyan shillings). Regional banking subsidiaries saw net profit growth of 53%, reaching 36.3 billion Kenyan shillings, driven by respective increases of 58%, 500%, and 125% for the DRC, Uganda, and Tanzania subsidiaries.

• Regional subsidiaries continued to deliver strong growth, driven by loan expansions of 17% in the DRC, 22% in Rwanda, and 61% in Tanzania.

• Equity Insurance Group maintains its strong momentum and reports a 75% increase in gross written premiums, contributing to a 36% increase in pre-tax profit.

• During fiscal year 2025, the Group invested approximately 99.5 billion Kenyan shillings (US$771 million) in social impact and sustainable development initiatives.

Equity Group Holdings Plc has announced record results for fiscal year 2025, a first in the history of Kenyan companies, with a 55% increase in net profit to 75.5 billion Kenyan shillings (KSh), compared to 48.8 billion KSh the previous year. This performance reflects the success of the Group's transformation, revenue diversification, improved efficiency, and strong regional presence. The balance sheet grew by 9% to 1,970 billion KSh (fiscal year 2024: 1,800 billion KSh), with customer deposits increasing by 4% to 1,460 billion KSh (fiscal year 2024: 1,400 billion KSh) and net loans by 8% to 882.5 billion KSh (fiscal year 2024: 819.2 billion KSh). The Group closed the year with 22.4 million customer accounts, thanks to a robust regional distribution network and a high-performing digital ecosystem.

Strong revenue performance resulted in a 17% increase in net interest income to KSh 126.9 billion, a 7% increase in non-financing income to KSh 90.8 billion, and a 12% increase in total revenue to KSh 217.7 billion (FY2024: KSh 193.8 billion). Operational efficiency improved significantly, with the expense-to-revenue ratio decreasing from 58.2% to 51.0%, driven by the continued migration to self-service channels, productivity gains, and enhanced cost control, supported by shared services and the Group's digital infrastructure. Over 98% of customer transactions were conducted outside of branches, with 88.4% of those via digital channels, demonstrating sustained demand for digital services and increased investment in customer-centric digital infrastructure. Provisions for loan losses decreased by 28%, while the loan loss coverage ratio improved to 67.7%, driven by a 1.7% reduction in the cost of risk. Commenting on the results, Dr. James Mwangi, Chief Executive and CEO of Equity Group, said these results demonstrate the strength of the Group's strategic transformation, driven by revenue diversification, improved efficiency, and the growing contribution of regional subsidiaries: “The 2025 results reflect the success of our deliberate transformation into a diversified regional financial services group. We have achieved strong earnings growth by developing and consolidating our revenue streams, improving efficiency across all our businesses, and strengthening the quality of our balance sheet.” Above all, our regional subsidiaries now contribute approximately half of our banking profitability, demonstrating the value of our pan-African presence and the resilience that diversification provides.

In light of these results, the directors recommended a dividend of Ksh 5.75 per share, up from Ksh 4.25 previously, representing a total payout of Ksh 21.7 billion (2024: Ksh 16 billion), a 35.3% increase in dividends.

Equity Bank Kenya Limited (EBKL) announced a 63% increase in its net profit after tax, amounting to Kenyan shillings 39.2 billion (fiscal year 2024).

EBKL recorded growth of Kenyan shillings 24.1 billion (KSh), driven by a 28% increase in net interest income and a 37% decrease in interest expense. Shareholders' equity increased by 11% to KSh 136.2 billion, while return on assets and return on equity improved, rising from 2.4% to 3.9% and from 20.2% to 26.8%, respectively. These results reinforce EBKL's leading role in supporting business growth. The bank was also recognized at the Kenya Bankers Association Sustainable Finance Initiative (KBA SFI Awards) as the best bank for SME financing, contributing 45% of all bank loans to SMEs.

Regional operations accounted for approximately half of the Group's profitability in fiscal year 2025, confirming Equity's emergence as a pan-African financial services group. In the DRC, net profit increased by 58% to Kenyan shillings (KSh) 24.7 billion, driven by a 17% increase in loans. In Uganda, net profit surged 500% to KSh 3.6 billion, while in Rwanda it reached KSh 5.4 billion, with a 5% increase in total assets and a 22% increase in the loan portfolio. In Tanzania, net profit climbed 125% to KSh 2.7 billion, alongside a 75% increase in shareholders' equity. Overall, subsidiaries contributed 51% to pre-tax profit and 48% to net profit.

Equity Insurance Group continued its strong expansion, driven by the recent acquisition of life, property and casualty, and health insurance underwriting licenses. Gross written premiums increased by 75% to 9.17 billion Kenyan shillings (KSh), generating a 36% increase in pre-tax profit to 2 billion KSh and a 150% rise in insurance revenue to 3.57 billion KSh. All subsidiaries recorded solid growth: Equity Life Assurance, which generated a pre-tax profit of 1.77 billion KSh, now has 6.9 million unique customers and has issued 19.2 million policies since its inception; Equity General Insurance recorded 1.79 billion KSh in gross written premiums and 199 million KSh in pre-tax profit in its first year of operation; Equity Health Insurance recorded KSh 20 million in gross written premiums and KSh 40 million in pre-tax profit during its first four months of operation.

Africa continues to show strong economic momentum, with 11 of the world’s 20 fastest-growing economies projected for 2025, including South Sudan, Rwanda, and Uganda. A mining boom is fueling growth in the Democratic Republic of Congo, Tanzania, and Uganda, while high prices for gold, copper, and coffee—combined with lower oil and wheat prices and a weaker US dollar—are supporting East African economies. Although geopolitical risks have increased due to the Iranian conflict, their impact is expected to be temporary; oil prices briefly reached around $100 but are expected to fall back to around $65 following a ceasefire, helping to stabilize trade and inflation.

Global inflation remains under control, although recent interest rate cuts in the DRC and Kenya could face short-term pressures due to rising oil prices.
The Equity Group Foundation (EGF) is generating significant social impact across Africa: it supports 1,115 students through international scholarships, 145 of whom received airfare this year; trains nearly one million entrepreneurs; and provides access to 401 billion Kenyan shillings in credit for over 500,000 SMEs. It has trained 3.8 million farmers in climate-smart agriculture techniques, distributed over half a million clean energy solutions, and planted 44.6 million trees. Through its rapidly expanding Equity Afya network, now with 150 centers, 4.6 million patients have received affordable, quality healthcare.

The Foundation is strengthening its Innovation and Technology pillar by training over 600,000 young people in AI, machine learning, and data analytics through partnerships with iamtheCODE, Huawei, and WorldQuant University. With enhanced impact measurement under the global Sustainable Disclosure Impact Data (SDID) framework and recognition through the 2025 Sustainable CSR Award, EGF continues to demonstrate how integrated investments in education, business, health, and climate resilience foster inclusive growth.

The Group’s excellent results also reflect its commitment to consolidating a renewed corporate culture and improving team productivity to consistently deliver an exceptional customer experience. By institutionalizing rigorous internal controls, raising performance standards, and integrating disciplined, data-driven execution across all teams, the Group has improved its operational efficiency and strengthened its market position.

Strengthened risk management and customer focus. These strategic measures, combined with a culture of accountability, agility, and service excellence, continue to position the Group for superior results across all markets. Equity Bank was named the best regional bank in East Africa and retained its position as Kenya's most valuable brand in 2025, reaffirming the Group's regional leadership and commitment to financial inclusion and socio-economic transformation. Beyond lending, the Group strengthens trade links for SMEs by facilitating cross-border trade through its regional network and integrated digital payment and transaction banking solutions, helping businesses access new customers, suppliers, and growth opportunities throughout the region.

Dr. Mwangi added that the Group will continue to implement its 2030 strategy, anchored in the African Recovery and Resilience Plan (ARRP), by leveraging next-generation digital technologies and artificial intelligence to amplify its impact, strengthen inclusion, and accelerate growth across the continent: “Our goal is to build an i a forward-looking, scalable, secure, and impact-driven institution. Through our Africa Recovery and Resilience Plan, we are investing in next-generation digital technologies and artificial intelligence that enhance the customer experience, strengthen risk management, and reduce service costs, while expanding access to affordable credit, insurance, and investment solutions. In pursuit of our 2030 ambitions, we are evolving beyond the traditional banking model to become a transformative financial institution that mobilizes capital, connects ecosystems, and accelerates inclusive and sustainable prosperity in Africa,” he said.

Equity Group’s 2030 strategy positions the organization for transformative growth across the continent. Anchored in the African Recovery and Resilience Plan (ARRP), the Group aims to operate in 15 countries and serve 100 million customers by 2030. Through strong governance, improvements include next-generation digital systems, AI-powered systems, and the launch of innovative applications, supported by a modern go-to-market model. These developments enable the Group to deliver more efficient service to diverse customer segments while fostering a customer-centric, agility, and innovative culture. Through blended finance, strategic partnerships, and the development of its ecosystem, Equity is evolving from a traditional bank into a transformational finance institution, mobilizing private capital to drive inclusive and sustainable prosperity in Africa.