Equity Group Managing Director and CEO James Mwangi during an interview at his office after the bank's investor briefing and release of Q1 2025 Financial Results at Equity Centre, Upper Hill, Nairobi on May 29, 2025.
Equity Group Holdings has posted a 54.6 per cent net profit growth to Sh71.9 billion in the year ended December 2025, riding on cost-cutting and subsidiary contributions to become the most profitable company in the country currently.
The company had reported a net income of Sh46.5 billion, the year before which had seen it rank behind Safaricom’s Sh69.5 billion and KCB’s Sh60 billion.
Safaricom, whose profitability has been weighed down by startup losses from its Ethiopian subsidiary, closes its financial year at the end of March with results set to be released in early May.
The telco had recorded a net income of Sh42.7 billion in the half year to September, indicating that its earnings for the full year will likely top Sh80 billion in what will see it reclaim the pole position.
KCB has meanwhile reported a full year net profit of Sh66.8 billion in the year ended December 2025.
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Equity which rode on cost-cutting and contribution from its subsidiaries to grow its profits, was however less generous with its dividend payout giving its shareholders 30.15 percent of the profits or Sh5.75 per share.
An Equity Bank branch in Nairobi.
This was lower than the 34.4 per cent of earnings distributed in the previous year which amounted to Sh4.25 per share. The new dividend however marks a 35.2 per cent growth in absolute terms to set a new record of Sh21.7 billion.
The management said the new dividend was in recognition of its expansion plans which targets entry into seven new markets in the next four years.
Management said it was looking at acquisitions in the targeted markets which include Ethiopia, Angola, Mozambique and Zambia and also to grow its market share in Tanzania and Uganda.
“We have a commitment from shareholders that they want us to be in 15 countries by 2030. If we don't start it today, there will be no 2030,” said James Mwangi., the banks Group CEO.
The bank has a dividend policy of distributing at a minimum 30 per cent of its net earnings to shareholders and an upper limit of 50 per cent.
“We have complied with the policy to the letter. If you look at the dividend we have paid, it is 30.15 percent,” said Mr Mwangi.
The high retention saw the group’s retained earnings grow 19.6 percent to Sh278.5 billion.
Its subsidiaries contributed 53 per cent of its net income, Sh36.3 billion, up from 50 per cent last year with Uganda recording the fastest growth after raising its gross profits nine fold to Sh4.5 billion.
Democratic Republic of Congo was the most profitable subsidiary with gross earnings of Sh32.1 billion while Rwanda posted Sh7.2 billion and Tanzania Sh3.5 billion.
Equity Group Chief Executive Officer (CEO) James Mwangi.
Cost reduction was mainly in interest expenses which shrunk by 24 per cent and loan loss provisions that fell 28 per cent as the bank's bad debts ratio improved to 10.5 per cent from 12.2 per cent earlier.
“The profit of the group has grown by 55 per cent to Sh72 billion from Sh46.5 billion last year. I can hear the silence. Equity has broken the corporate record of profitability,” said Mr Mwangi.
"So, how did we make this money? As you can see it is net interest income which went up by 17 per cent. The top line was not about growth; it was about efficiency. So we reduced our cost of funding by 24 per cent,” he added.
Equity paid out Sh35.6 billion as interest for customer deposits, which stood at Sh1.45 trillion compared to Sh48.4 billion it paid a year earlier when it held Sh1.39 trillion in customer savings. Its interest income from loans fell marginally, 1.6 percent, to Sh105.8 billion despite a 7.7 percent expansion of its loan book to Sh882.4 billion.
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