Equity’s Tech-Led Transformation Powers Record Q1 Performance, Regional Subsidiaries Drive Half of Group Profitability
Equity Group Holdings Plc has reported strong first-quarter results for 2026, demonstrating the continued success of its deliberate transformation into a resilient, technology-led, pan‑African financial services Group. Profit After Tax rose 24% to KSh19.1 billion, reflecting strengthened balance sheet quality, disciplined execution, and growing contributions from regional subsidiaries.
The Group’s balance sheet expanded 16% to KSh2.04 trillion, supported by 13% growth in customer deposits and 9% growth in net loans, signaling sustained customer confidence and broad-based economic activity across its markets. This growth was driven by a strong and growing customer base of 22.7 million customers, supported by an extensive distribution infrastructure comprising 86,910 Agency Outlets and 1.4 million merchants, reinforcing the Group’s position as a leading integrated financial services provider in the region.
A Deliberate Journey of Transformation
Equity’s Q1 performance reflects a multi‑year transformation agenda anchored in resilience, diversification, and technology. The Group has restructured its operating model, strengthened its regional footprint, and invested heavily in digital and AI‑enabled capabilities to build a future‑ready institution.
Operational efficiency continued to improve, with the cost‑to‑income ratio declining to 50.6% from 54.2% – a direct outcome of productivity gains, shared services, and customer‑led migration to digital channels.
Return on assets and equity remained strong, with ROA at 3.9% and ROE at 22.6% signaling strong asset productivity and disciplined capital deployment.
Commenting on the results, Dr. James Mwangi, Group Managing Director and CEO, said: “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 added:
“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.” Equity’s technology‑led transformation is now firmly embedded across the Group. Customer behavior continues to shift decisively toward digital channels, with 98.3% of all transactions occurring outside branches and 89.5% processed through digital platforms, demonstrating that customers are actively choosing the convenience and reliability of Equity’s digital ecosystem.
The Group’s technology organization, strengthened through the buildout of the Technology Group in the fourth quarter, continues to modernize core systems, payments infrastructure, and risk analytics. This transformation is reinforced by large-scale staff upskilling, with employees embracing AI and digital training at impressive scale, positioning the workforce to lead the next phase of innovation. This includes 80% of Group staff completing a business-focused generative AI course, with over 20,000 hours of instruction achieved. Upskilling efforts with iamtheCODE reflect over 5,000 active users with over 3,500 hours of learning recorded. These foundational investments are enabling faster service delivery, improved risk management, and scalable growth across all markets.
Tighter risk controls and diversification – fueled growth
The Group continued to strengthen asset quality and risk buffers. NPL coverage improved to 72%, up from 67%, while loan loss provisions declined by 18% as the quality of the loan book improved. The loan book also recorded a significant improvement in risk indicators, with a year‑on‑year improvement in non-performing loans (NPLs) from 14% to 10%, reflecting disciplined collection underwriting, enhanced analytics, and the benefits of a diversified portfolio. These improvements underscore the Group’s commitment to resilience and long-term sustainability.