Equity Group (EQTY) Q2 2025 earnings summary

Executive summary

• Transformation over four years has shifted focus from strategy to execution, with visible improvements in operational and financial performance.

• Total assets reached KSh 1.80 trillion as of June 30, 2025, up from KSh 1.75 trillion, with profit after tax for H1 2025 rising 17% to KSh 34.6 billion.

• Subsidiaries contributed 49% of assets and 48% of PBT, reflecting successful regional diversification.

• Governance, leadership, and risk management frameworks have been completed, with a strengthened board and executive team.

• The group diversified into insurance and technology, both segments showing rapid growth and profitability.

Financial highlights

• Net interest income grew 9% YoY to KSh 59.3 billion; non-interest income reached KSh 40.9 billion.

• Cost-to-income ratio at 51.7%, within guidance; NIM improved to 8.3% from 7.9% YoY.

• Profit after tax for H1 2025 was KSh 24.07 billion, up from KSh 13.92 billion year-over-year.

• Customer deposits grew to KSh 1.40 trillion from KSh 1.30 trillion year-over-year.

• Insurance segment gross written premiums up 115% YoY, with PBT up 26%.

Outlook and guidance

• Focus on optimizing the balance sheet by reallocating KSh 450 billion from government securities to higher-yielding loans.

• Expectation of double-digit quarterly profit growth as transformation matures and lending accelerates.

• Brand value rose to KSh 65.8 billion, ranked 2nd strongest banking brand globally and top in Africa.

• Management highlights continued focus on sustainable growth, risk management, and digital innovation.

• Loan and deposit growth slightly below guidance; focus remains on risk management and digital transformation.