Equity Group (EQTY) Q3 2025 earnings summary

Executive summary

• Profit after tax rose 32% year-over-year to KES 54.1 billion, driven by diversified revenue, efficiency gains, and strong regional performance.

• Achieved 7% year-over-year balance sheet growth to KES 1.82 trillion, supported by increased shareholders' funds and steady loan book expansion.

• Regional subsidiaries contributed 45% of profit before tax and 42% of profit after tax, with notable growth in DRC, Rwanda, Uganda, and Tanzania.

• Insurance business expanded rapidly, with gross written premiums up 71% and profit before tax up 36%.

• Technology investments enabled 98% of transactions outside branches, with 87.4% on digital channels.

Financial highlights

• Net interest income grew 16% to KES 93.5 billion; non-funded income increased 3% to KES 63 billion.

• Total income up 10% to KES 156 billion; cost-income ratio improved to 50.6%.

• Provisions for loan losses decreased by 9%, and staff costs rose 19% due to talent investment.

• Return on assets at 4.1% and return on equity at 26.4%.

• NPL ratio improved from 14% to 12.1%, with coverage rising to 71%.

Outlook and guidance

• 2025 guidance targets met or exceeded: loan growth at 7.5%, NIM at 8.6%, ROAE at 26.4%, and ROAA at 4.1%.

• Focus on unlocking balance sheet by migrating cash to loans, targeting a loan-to-deposit ratio increase from 64% toward 85%.

• Expectation to reduce NPLs below 10% by year-end and sustain efficiency-driven profit growth.

• Continued investment in technology and digital platforms to drive future growth.

• Management highlights ongoing investment in customer-centric initiatives.