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 rising 17% to KSh 34.6 billion and total comprehensive income at KSh 39.84 billion.

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

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

• Social impact initiatives have scaled, with over $713 million invested in education, health, and entrepreneurship, impacting millions across Africa.

Financial highlights

• Net interest income grew 9% year-over-year to KSh 59.3 billion, with non-interest income at KSh 32.78 billion.

• Profit before tax rose 12%, and profit after tax increased 17% to KSh 34.6 billion; earnings per share rose to 802.40.

• Cost-to-income ratio at group level is trending toward 48%–51.7%, with further improvement expected.

• Return on equity reached 28% in Kenya and 26.1% group-wide; return on assets improved to 3.9%.

• NPL ratio stands at 13.7%, with gross NPLs at KSh 109.45 billion, above guidance.

Outlook and guidance

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

• H1 2025 performance aligns with guidance for NIM, CIR, ROE, and ROA, but NPL ratio remains above target.

• The group aims to reach 100 million customers and maintain a cost-income ratio below 40% in the medium term.

• No plans to raise additional capital unless for acquisitions; internally generated cash is sufficient for growth.