Equity Group Reports Ksh 60.7 Billion In Profits Before Tax

Equity Group Holdings Plc continues to deliver solid financial results, underpinned by the Group’s strategic focus on diversification, innovation, and regional expansion.

With strong liquidity, capital buffers, and robust regional businesses, the Group is poised to maintain its leadership position in the region and continue driving sustainable growth.

While releasing the full year 2024 results, Dr. James Mwangi, Equity Group Holdings Plc Managing Director and CEO, said, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group’s liquidity and capital position remains strong, positioning us to better support our customers in the years ahead.”

In FY 2024, Equity Group Holdings Plc achieved a Profit After Tax (PAT) of Kshs 48.8 billion, reinforcing the continued success of the Group’s diversified business model and prudent financial management.

The Group’s Profit Before Tax (PBT) grew by 17% to Kshs 60.7 billion, while Earnings Per Share (EPS) rose by 11% to Kshs 12.3, signifying the Group’s robust financial performance.

The Group’s total deposits grew to reach Kshs 1.4 trillion, with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise.

The Group’s liquidity position remains strong, with cash and cash equivalents rising by 17% to Kshs 339 billion, while investment securities grew to Kshs 512 billion, contributing to an overall liquidity ratio of 57%. This positions the Group to effectively underpin the Groups’ Africa Recovery and Resilience Plan (ARRP), a private sector-led development plan championed by Equity aimed at catalyzing, capacitating, connecting, and financing enterprises and households across Africa.

Read Also: 750 Top KCSE Scholars To Join Equity’s Leadership Program

Beyond providing financial and technological tools, it empowers individuals, businesses, and communities through a clear framework for development by building capabilities and mitigating risks, enabling them to leverage these tools effectively and efficiently to achieve their social, environmental, and economic ambitions.

The ARRP aspires to drive long-term transformation across the continent, relying on the support and active participation of diverse stakeholders. Strategic partnerships with Development Finance Institutions (DFIs), global implementation partners, and social institutions have been instrumental in delivering a wide range of social and commercial outcomes with lasting, sustainable results.

As part of these efforts, the Group has also partnered with AfDB, Microsoft and Mastercard Corporation to digitize 10 million farming customers under the Community Pass initiative for the delivery of the MADE Alliance, further enhancing financial inclusion and digital accessibility across Africa; and with the World Food Programme to further capacitate small-holder farmers into agribusiness.

The Group demonstrated commitment to its shareholders by proposing a dividend of Kshs 4.25 per share, a payout ratio of 34.5%, reinforcing its track record of delivering value to its shareholders. This is supported by a return on equity (ROE) of 21.5% and a return on assets (ROA) of 2.8%, both of which are well above industry averages.

Equity Group has adopted a tri-engine approach, integrating commercial, social, and sustainability priorities to foster sustainable economic growth and create meaningful societal impact. The Group continues to build on its legacy of resilience, strong governance, long track record of execution, self-disruption, agility, and scalability of its business model to thrive in the different markets it operates in.

It has continued to grow the value it creates for its customers and stakeholders, becoming a regional systemic financial services provider in position one or two in three of the six markets it operates in: Kenya, DRC, and Rwanda. The Group’s strategic focus on regional expansion and product diversification continues to drive growth, with the Group’s regional subsidiaries contributing 49% of total assets, 48% of total loans, and 54% of profit before tax, further diversifying the revenue base.

The Kenya subsidiary, while still a major contributor, accounted for 46% of total revenue. Equity Bank Rwanda’s revenue grew YoY by 36%, Tanzania by 20%, and DRC by 9%, while PAT for Equity Bank Rwanda grew by 30% YoY, Tanzania by 107%, Uganda by 186%, and DRC by 29%, signaling increasing contributions from regional operations.

Equity Bank Kenya has, in the past six months, cut its base lending rat