Equity Group (EQTY) Q1 2025 earnings summary

Executive summary

• Total assets grew 4% YoY to KES 1.75T, with deposit growth of 7% to KES 1.32T, despite macroeconomic and regional volatility.

• Net profit after tax for Q1 2025 reached Shs. 20.3B, up from Shs. 15.4B in Q1 2024, reflecting strong earnings growth.

• Profit before tax declined 8% YoY to KES 18.7B, while subsidiaries contributed 48% of assets and 47% of PBT.

• Maintained strong capital (total CAR 18.3%) and liquidity (58.5%) positions.

• Recognized as the 2nd strongest banking brand globally and top in Africa.

Financial highlights

• Net loans grew 3% YoY to KES 804.7B; customer deposits up 7% to KES 1.32T.

• Net interest income rose to KES 28.6B; non-funded income was KES 19.6B.

• Operating expenses increased to Shs. 29.7B from Shs. 27.4B YoY.

• Cost-to-income ratio rose to 54.2% from 47.1% YoY; NIM improved to 8.0%.

• Loan loss provisions dropped 44% YoY, supporting profitability.

Outlook and guidance

• 2025 guidance: loan growth 5–10%, deposit growth 7.5–12.5%, NIM 7.3–7.8%, CIR 48–52%, ROE 25–30%, ROA 3.2–3.7%.

• Actual Q1: loan growth 3%, deposit growth 7%, NIM 8.0%, CIR 54.2%, ROE 23.9%, ROA 3.5%.

• Management expects continued regional growth, digital expansion, and resilience amid macroeconomic and political risks.

• Brand value rose to Kshs. 65.8B, with a Brand Strength Index score of 92.5/100 and AAA+ rating.

• Recognized as the most admired financial services brand in Africa and best bank for corporate responsibility.