Equity Group (EQTY) Q1 2026 earnings summary

Executive summary

• Achieved strong growth in Q1 2026 with total assets up 16% year-over-year to Shs 2.04 trillion and profit after tax up 24% to Kes 19.1B, driven by robust performance across banking and insurance segments and strategic transformation focused on resilience, technology, and regional integration.

• Subsidiaries contributed over 50% of group assets, deposits, and profit before tax, reflecting successful regional diversification.

• Maintained leadership in MSME lending, disbursing 36% of industry MSME loans in Kenya for Q1 2026.

• Maintained a strong governance structure and capital buffers, enabling agility and risk management.

• Customer base reached 22.7 million across East and Central Africa.

Financial highlights

• Balance sheet grew 16% year-over-year, surpassing KES 2 trillion, with KES 300 billion annual growth; net loans grew 9% to Kes 873.5B and customer deposits rose 13% to Kes 1.48T.

• Net interest income up 15% to Kes 33.0B; non-funded income up 14% to Kes 22.3B; non-interest income reached Shs 36.1 billion.

• Profit before tax increased 31% to Kes 24.5B; profit after tax up 24% to Kes 19.1B; EPS rose 24% to Kes 4.9.

• NPL ratio improved to 10.6% with coverage at 72%.

• Cost-to-income ratio at 50.6%; ROAE at 22.6%; ROAA at 3.9%.

Outlook and guidance

• Expects return on equity to approach 30% by year-end as profit accumulates.

• Forecasts cost-to-income ratio to fall below 50% by year-end, with cost of risk trending below 1%.

• Anticipates non-funded income to surpass funded income by 2028, driven by technology and digital adoption.

• Q1 2026 actuals largely met or exceeded guidance for loan growth (8.6%), deposit growth (12.8%), and ROAA (3.9%).

• NPL ratio (10.6%) exceeded guidance range (7–9%), while cost-to-income ratio (50.6%) was above target (46–49%).