Equity Group Holdings has reported a strong start to 2026, posting a 24% year on year increase in profit after tax to KSh19.1 billion in the first quarter, supported by robust regional growth, expanding customer activity, and continued digital transformation across its operations.
The performance was driven by broad based expansion across its banking network in East and Central Africa, with total assets rising 16% to KSh2.04 trillion, customer deposits increasing 13% to KSh1.48 trillion, and net loans growing 9% to KSh873.5 billion. The group said this reflects sustained customer confidence and increased economic activity across its markets.
A key highlight of the results was the strong performance of regional subsidiaries, which continue to play a central role in Equity’s growth strategy. These subsidiaries now account for more than half of the group’s total banking assets and profitability, underlining the success of its cross border expansion model.
In Uganda, Equity Bank Uganda recorded a 16% increase in total assets to KSh131.1 billion, supported by steady growth in deposits and lending activity. Customer deposits rose 6% to KSh96.2 billion, while loans expanded 5% to KSh49.6 billion, reflecting continued support for households and businesses in the country.
Despite a moderation in profitability, the Ugandan operation maintained a solid earnings position with profit before tax of KSh1.1 billion. The bank also reported improved risk management metrics, with IFRS coverage strengthening to 82%, indicating more conservative provisioning against potential loan losses.
Group Chief Executive Officer Dr James Mwangi said the results reflect the success of Equity’s long term transformation strategy, which is shifting the institution from traditional banking into a technology driven financial services ecosystem.
He noted that the group is increasingly focused on becoming what it describes as a “transformation finance institution”, aimed at mobilising capital across sectors, supporting economic ecosystems, and driving inclusive growth across Africa.
Digital adoption continues to be a major driver of efficiency within the group. Equity reported that more than 98% of transactions are now conducted outside physical branches, with nearly 90% processed through digital platforms, highlighting the rapid shift in customer behaviour.
Efficiency gains were also reflected in improved operational ratios, with the cost to income ratio declining to 50.6% from 54.2%, while return on equity stood at 22.6%, signalling strong profitability despite a challenging macroeconomic environment in parts of the region.
Subsidiaries in Tanzania, Rwanda, and the Democratic Republic of Congo delivered particularly strong growth, reinforcing the group’s diversified regional footprint. Tanzania recorded profit growth of 150%, Rwanda 36%, and DRC 32%, further strengthening the group’s earnings base outside its home market.
Analysts say the results underline the increasing importance of regional banking groups in Africa’s financial sector, as institutions expand beyond domestic markets to capture growth opportunities linked to trade integration, digital finance, and rising financial inclusion.
The group also highlighted its continued investment in youth development and leadership programmes, particularly in Uganda, where it continues to support education and entrepreneurship initiatives aimed at building long term human capital.
With improving macroeconomic conditions in key markets and continued expansion of digital banking infrastructure, Equity Group said it remains confident in sustaining its growth trajectory through 2026 and beyond.
