Equity Group (EQTY) Q4 2025 earnings summary

Executive summary

• Achieved record profit after tax of KSh75.5 billion, a 55% year-over-year increase, marking the highest in East and Central Africa, with strong contributions from regional subsidiaries and insurance operations.

• Balance sheet expanded 9% to KSh1.97 trillion, with customer deposits up 4% to KSh1.46 trillion and net loans up 8% to KSh882.5 billion; regional subsidiaries now contribute about half of banking profitability.

• Operational efficiency improved, with cost-to-income ratio dropping to 51% from 58.2%, and over 98% of transactions conducted outside branches, 88% via digital channels.

• Strategic focus shifted to aggressive, value-creative growth, leveraging digital transformation, regional diversification, and rapid expansion in non-banking segments.

• Significant investment in human capital, including mandatory AI and technology training for all staff to support digital transformation.

Financial highlights

• Net interest income rose 17% to KSh126.9 billion, non-funded income up 7% to KSh90.8 billion, and total income up 12% to KSh217.7 billion year-over-year.

• Cost-to-income ratio improved to 51%, with operating expenses down 5% and discretionary costs down 10%.

• Loan loss provisions declined 28%, with NPL coverage at 67.7% and cost of risk reduced to 1.7%.

• Dividend payout increased by 35.3% to KSh21.7 billion, the highest in company history.

• Earnings per share increased 55% to KSh19.1; return on average equity at 26.8%, return on average assets at 4.2%.

Outlook and guidance

• 2026 guidance: loan growth 8–12.5%, deposit growth 8–10%, NIM 8.3–9.0%, cost-to-income ratio 46–49%.

• Subsidiaries expected to contribute 50–55% of assets and 45–50% of PBT.

• 2030 strategy targets operations in 15 countries and 100 million customers, leveraging digital and AI-enabled capabilities.

• Focus on scaling impact, deepening inclusion, and accelerating growth through the Africa Recovery and Resilience Plan.