Equity Group (EQTY) Q2 2026 earnings summary

Executive summary

• Profit After Tax rose 32% year-over-year to KSh45.5 billion, with Profit Before Tax up 39% to KSh57.8 billion, reflecting robust balance sheet growth and regional expansion.

• The group is now a diversified, pan-African financial services provider, with significant contributions from both banking and non-banking subsidiaries.

• Technology-driven transformation accelerated, with 98.3% of transactions outside branches and 89.7% processed digitally.

• The Group's Africa Recovery and Resilience Plan (ARRP) 2030 aims to expand to 15 countries and serve 100 million customers, leveraging technology and partnerships.

• Regional subsidiaries, especially in Tanzania and DRC, delivered strong profit growth of 82% and 30% respectively.

Financial highlights

• Balance sheet expanded 20% year-over-year to KSh2.16 trillion, with customer deposits at KSh1.59 trillion and net loans at KSh981 billion.

• Net interest income increased 17% year-over-year to KSh69.3 billion; total income up 25% to KSh124.9 billion.

• Non-funded income grew 36% to KSh55.6 billion, now contributing 44.5% of total income.

• Cost-to-income ratio improved to 48.6% from 51.7%, with further reductions expected as digitalization deepens.

• Return on Equity at 26.5% and Return on Assets at 4.5% for the half year.

Outlook and guidance

• Management exceeded guidance on most parameters, with continued focus on digital transformation and regional growth.

• The Group targets 100 million customers and presence in 15 countries by 2030, projecting a KSh5 trillion balance sheet before 2030.

• Guidance for full-year profit after tax is KSh100 billion, with all key ratios and targets on track.

• Dividend payout policy remains at a minimum of 30%, with dividends expected to grow in line with profits.

• Digital and AI-enabled systems are central to future growth and operational scalability.