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 at June 30, 2024, reflecting continued balance sheet growth.

• Profit after tax for H1 2025 rose 17% to KSh 34.6 billion, with subsidiaries contributing 49% of assets and 48% of PBT, highlighting successful regional diversification.

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

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

Financial highlights

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

• Profit before tax rose 12%, and profit after tax increased 17% year-over-year.

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

• Cost-to-income ratio at group level is trending down, with a target to reduce from 50% to 40%; current CIR is 51.7%.

• NPL ratio stands at 13.7%, with strong coverage and a plan to reduce further.

Outlook and guidance

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

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

• Targeting 100 million customers and significant SME loan book growth by 2030.

• H1 2025 performance largely in line with FY 2025 guidance for NIM, CIR, ROE, and ROA; NPL ratio remains above target.

• Continued focus on sustainable growth, risk management, and digital innovation.