Kenya’s Equity Group Holdings reported a sharp rise in full-year 2025 earnings on Wednesday, as higher interest income and reduced loan loss provisions boosted profitability across its regional operations.
The lender, one of East Africa’s largest financial institutions, said pretax profit climbed 52 percent year-on-year to 92.1 billion Kenyan shillings (US$711.5 million), up from 60.7 billion shillings in 2024.
The strong performance was driven largely by growth in net interest income, which rose to 126.9 billion shillings from 108.8 billion shillings the previous year, reflecting increased lending activity and improved yields.
Equity Group, which operates in several African markets including Uganda, Tanzania, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo, has been expanding its regional footprint as part of a broader strategy to diversify revenue streams and reduce reliance on its home market.
The bank said the earnings boost was also supported by a significant decline in loan loss provisions, which fell to 14.5 billion shillings from 20.2 billion shillings a year earlier.
Lower provisioning suggests an improvement in asset quality, as fewer loans are expected to go bad compared with the previous year, analysts said.
The results come against a backdrop of mixed economic conditions across East Africa, where lenders have had to navigate currency volatility, inflationary pressures and shifting monetary policies.
Despite these challenges, Equity Group has continued to grow its loan book and deepen its presence in key markets, benefiting from increased demand for credit among businesses and households.
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The rise in interest income highlights the bank’s ability to capitalise on higher lending rates, which have boosted margins across the sector, even as borrowing costs remain elevated.
Analysts say the combination of stronger core income and improved credit quality positions the group favourably heading into 2026, although risks remain linked to macroeconomic conditions in its operating markets.
Equity Group has in recent years positioned itself as a regional banking powerhouse, leveraging digital banking platforms and cross-border expansion to drive growth.
Its operations in the Democratic Republic of Congo, in particular, have been seen as a key long-term growth driver, given the country’s large population and relatively underdeveloped banking sector.
The lender did not immediately provide forward guidance, but the latest results are likely to reinforce investor confidence in its business model and regional strategy.
Banking sector performance across East Africa is expected to remain closely tied to economic recovery trends, credit demand and the trajectory of interest rates.
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For Equity Group, sustaining the current growth momentum will depend on maintaining asset quality while continuing to expand lending in a competitive and evolving financial landscape.
