Equity Bank’s Non-Banking Units Deliver Double-Digit Growth As Group Strengthens Regional And Sectoral Diversification

Equity Group Holdings has reported another stellar performance, with its non-banking units delivering double-digit growth, signalling the Group’s steady transformation into an integrated financial services powerhouse.

The Group’s latest results underscore a bold strategy of revenue diversification, future-readiness, and deepening regional expansion.

The Group’s insurance arm stood out as a major driver of growth, with profit before tax surging 26%, supported by a 115% increase in gross written premiums to KShs. 5.18 billion from KShs. 2.41 billion.

Insurance revenue climbed 59%, while total assets expanded 40%. The addition of a health insurance license this year now complements the Group’s existing life and general insurance licenses—positioning Equity as one of the few financial institutions in the region licensed across all three major insurance categories.

Equity Life Assurance, now in its third year of operation, has risen rapidly to become the second-largest group credit insurance company with a 7% market share in group life and credit life insurance. Gross written premiums soared 58% to KShs. 3.8 billion from KShs. 2.4 billion.

Net insurance and investment revenue grew by 18% to KShs. 953 million, while profit before tax jumped 20% to KShs. 890 million. With assets at KShs. 28.6 billion and a return on equity of 40.7%, the business has issued 16.6 million policies to date, reaching 6.7 million cumulative unique customers.

The general insurance business, launched this year, recorded a strong start, booking KShs. 1.36 billion in gross written premiums within just six months, generating KShs. 640 million in insurance revenue and delivering a profit before tax of KShs. 32 million.

The Group’s fintech platforms also demonstrated formidable growth, handling 87.4% of all customer transactions via digital channels. In total, over 98% of transactions now occur outside physical branches, reflecting a well-executed migration from high-cost, fixed infrastructure to scalable self-service channels.

Equity’s non-banking businesses, technology, and insurance have increased their contribution to Group assets from 1.4% to 1.9%, revenue from 2.8% to 4%, and profit before tax from 3.5% to 3.8% year-on-year. Notably, these units delivered a return on equity of 42.4% and a return on assets of 6.6%, outpacing the Group’s overall return on equity of 26.1% and return on assets of 3.9%.

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Regional Expansion Paying Off

The Group’s regional diversification strategy continues to bear fruit, with nearly half of its banking metrics now coming from outside Kenya. Regional subsidiaries contribute 49% of deposits, 50% of the loan book, 48% of assets, and 50% of banking revenue. Importantly, they account for 46% of profit before tax and 43% of profit after tax in the banking segment.

Asset quality remains a point of strength, with the Group’s non-performing loan (NPL) ratio improving from a Q1 2025 peak of 14.0% to 13.7% in H1 2025—well below the industry average of 17.6% as at April 2025. Standout performances came from Equity Bank Tanzania, where the NPL ratio fell to 2.9% from 10.6%, and Equity Bank Uganda, where it dropped to 12.2% from 17.9%. The cost of risk declined from 2.6% to 1.7% year-on-year, while IFRS NPL coverage remained robust at 68.2%.

Financial Performance

The Group’s balance sheet expanded 40% to KShs. 31.48 billion from KShs. 22.4 billion. Profit after tax rose 27% to KShs. 660 million from KShs. 520 million.

Social and Sustainability Impact

Alongside its commercial success, Equity continued to invest in its social and sustainability initiatives through the Equity Group Foundation, deploying USD 715 million into community and environmental programs. Nearly half of this funding supported scholarships for secondary school students, with a further 34% allocated to university scholarships. The Foundation’s work spans enterprise development, financial inclusion, health, energy, environment, and agriculture—positioning the Group as a private-sector leader in sustainable development.

The Equity Leaders Program (ELP) has now supported 29,515 university scholars, with over 1,000 gaining placements at top global universities. The Group’s climate action programs have distributed over 520,000 clean energy products and planted 36.4 million trees, alongside deploying more than USD 200 million in targeted climate finance.

Through the Young Africa Works initiative, KShs. 363.09 billion has been disbursed to 350,149 MSMEs, with over 2.4 million women and youth receiving financial education. Social protection programs have reached 5.9 million individuals, disbursing KShs. 169.8 billion in cash transfers. The Equity Afia healthcare network has expanded to 139 clinics, recording 3.98 million patient visits.

Recognition and Industry Leadership

Equity Bank was named “Best Regional Bank in East Africa” at the African Banker Awards 2025 and retained its position as Kenya’s most valuable brand for the second consecutive year. These accolades affirm its market leadership, strong governance, and commitment to financial inclusion across the continent.

With a rapidly expanding footprint in both banking and non-banking sectors, an increasingly digital customer base, and a deep commitment to sustainable development, Equity Group appears well-positioned to redefine the role of an African financial institution in the 21st century.

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