Equity Group Delivers Record Half-Year Profit In Four Years Amid Muted Credit Growth And Economic Headwinds

Equity Group Holdings Plc has defied a turbulent economic climate to post its strongest quarterly profit in four years, underscoring the bank’s operational excellence, prudent cost management, and diversified income strategy.

For the second quarter alone, the Group recorded a Profit Before Tax (PBT) of KES 8.1 billion, contributing to a robust half-year performance that cements its resilience in the face of muted credit growth and rising macroeconomic pressures.

For the first half of 2025, Equity Group’s PBT stood at KES 41.5 billion, representing a 12% increase from KES 37.2 billion in H1 2024. Stripping out the contribution from Equity Bank South Sudan Limited (EBSSL), the Group’s core banking business still saw a remarkable 20% jump in PBT, from KES 34.6 billion to KES 41.7 billion, demonstrating that the performance surge was not merely a function of currency or one-off factors, but a result of sustained strategic execution.

Net interest income rose by 9% to KES 59.4 billion, boosted by a significant 18% drop in interest expenses, which fell to KES 25.0 billion. This cost-saving came despite a marginal 1% dip in interest income, signaling a disciplined approach to asset-liability management.

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Non-funded income, which includes fees, commissions, and other non-interest revenue streams, held steady with a slight 4% contraction to KES 40.9 billion, though in constant currency terms, it still reflected growth, reaching KES 45.7 billion, a 7% improvement.

Total operating costs dropped by 2% to KES 58.7 billion, reflecting Equity Group’s keen eye on efficiency even while navigating inflationary pressures. Loan loss provisions fell sharply by 34% to KES 6.9 billion, a sign of improved asset quality and prudent credit risk management.

Staff costs rose modestly by 10% to KES 18.6 billion (constant currency), reflecting strategic investments in human capital to support future growth, while other operating expenses grew by 2% to KES 34.2 billion.

The Group’s total income climbed to KES 100.2 billion, a 3% increase from H1 2024, but in constant currency terms, it jumped by an impressive 11% to KES 107.5 billion—further reinforcing the strength of its core operations despite currency volatility.

After accounting for taxes, Profit After Tax (PAT) climbed 17% to KES 34.6 billion, compared to KES 29.6 billion in the same period last year. On a constant currency basis, PAT grew by 21% to KES 35.9 billion. This rise in bottom-line profitability in such a challenging macroeconomic environment speaks volumes about the Group’s strategic agility and operational resilience.

The half-year results come at a time when Kenya’s banking sector is contending with slower credit uptake, high-interest rate environments, and foreign exchange pressures. Yet Equity Group’s ability to grow earnings while reducing cost pressures illustrates the success of its diversified business model, which does not overly rely on credit growth to drive profitability.

By balancing funded and non-funded income streams, managing costs tightly, and keeping a firm handle on credit risk, the bank has managed to protect its margins and continue delivering shareholder value.

Equity Group’s latest results send a clear signal to investors, regulators, and customers alike: that resilience is not merely about weathering the storm, but using it to gain a competitive advantage. The Group’s performance reflects not just defensive strategies, but proactive positioning to seize opportunities in new markets, expand digital banking services, and improve customer experience.

The launch of new digital innovations, expansion into regional markets, and continuous operational refinements appear to be bearing fruit—allowing the Group to remain profitable even in subdued lending conditions.

As the year progresses, Equity Group is well-positioned to build on this momentum. The combination of cost discipline, diversified income streams, prudent risk management, and strategic growth investments means the Group is likely to sustain its earnings trajectory, even if credit growth remains sluggish.

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