The impressive results were driven by diversified revenue streams, strong subsidiary performance, and continued recovery in the Kenyan banking business. The Group recorded a Return on Average Equity (RoAE) of 26.4% and a Return on Average Assets (RoAA) of 4.1%, underscoring robust profitability across markets.
'The execution of the strategic business plan has started to reflect on the balance sheet and performance of the Group in agriculture, mining, manufacturing, trade and investment, and small and medium enterprises (SMEs) that populate the eco-systems of the formal sector,' said Dr. James Mwangi, Equity Group Managing Director and CEO. 'This is likely to significantly and increasingly transform the structure and performance of the Group.'
Strong regional growth across markets
Equity's regional subsidiaries continued to strengthen their contribution, accounting for 50% of deposits, 53% of the loan book, 50% of total banking assets, and 49% of Group banking revenue. Collectively, these subsidiaries contributed 45% of Profit Before Tax and 42% of Profit After Tax for the banking business.
In Kenya, Equity Bank reported a 51% rise in Profit After Tax to Kshs 31.1 billion, up from Kshs 20.6 billion. Net interest income grew by 27% to Kshs 53.6 billion, supported by a 34% decline in interest expenses. Total equity rose by 36% to Kshs 171.4 billion, while the bank maintained leadership in MSME lending, disbursing 45% of Kenya's Kshs 201 billion MSME loans between January and July 2025.
In the Democratic Republic of Congo (DRC), Profit After Tax rose 21% to Kshs 13.8 billion, with loans and advances up 19% to Kshs 302.7 billion. In Uganda, Profit After Tax increased 61% to Kshs 2.9 billion, while Rwanda recorded 34% loan growth and an 18% rise in total equity to Kshs 19.6 billion. Tanzania posted the highest growth rate, with Profit After Tax jumping 88% to Kshs 1.5 billion and shareholders' funds rising 83% to Kshs 12.1 billion.
Dr. Mwangi praised the regional performance, noting, 'We are particularly proud of our regional subsidiaries, which have demonstrated resilience and contributed significantly to our overall performance.'
Efficiency and digital transformation
The Group's operational efficiency improved markedly, with the cost-to-income ratio declining to 50.6% from 55.1% last year. Asset quality remained strong, with the non-performing loan (NPL) coverage ratio at 71.4% and the cost of risk contained at 1.9%.
'Technology remains central to the Group's strong operational performance and strategic resilience,' Dr. Mwangi said. 'During the quarter, we further improved system reliability, launched key digital integrations across markets, strengthened fraud controls, and advanced our AI and data governance frameworks.'
Over 98% of transactions now occur outside branches, with 87.4% executed through digital channels. The Group invested heavily in scalable, next-generation technologies powered by machine learning and Generative Artificial Intelligence (GAI), aligned with international standards such as ISO 27001 and PCI-DSS for cybersecurity and compliance.
'These investments assure data protection and safeguard our digital ecosystem as transaction volumes and API integrations scale,' added Dr. Mwangi.
Strategic transformation and ARRP vision
Equity Group's Q3 2025 results come amid implementation of its Africa Recovery and Resilience Plan (ARRP) and 2030 Strategic Plan, which target presence in 15 countries and service to 100 million customers by 2030.
The Group's evolution is anchored in its Tri-Engine Business Model, comprising banking, insurance, and technology, to position itself as a 'Transformation Finance Institution,' bridging commercial capital with development finance and philanthropy.
'The ARRP is demonstrating how financial institutions can catalyze inclusive and sustainable growth by aligning private capital with national and regional development priorities,' the Group noted.
Growth in insurance and non-banking ventures
Equity Group's foray into insurance continued to deliver strong results. With three licenses for life, general, and health insurance, the Group reported a 36% growth in profit before tax to Kshs 1.46 billion, supported by a 71% rise in gross written premiums to Kshs 6.55 billion.
Equity Life Assurance grew its gross written premiums by 28% to Kshs 4.9 billion, serving 6.8 million unique customers with 17.8 million policies issued to date. It achieved a Return on Average Equity of 37.7% and Return on Assets of 4.5%.
General Insurance, in its first year, posted Kshs 1.67 billion in gross written premiums and Kshs 140 million in profit before tax, while Equity Health Insurance, licensed in July, recorded Kshs 23 million profit before tax in its debut quarter.
These subsidiaries are 'poised to contribute towards increased profitability and return on equity to the overall Group performance,' according to the Group's statement.
Commitment to SMEs
Throughout its digital and structural transformation, Equity Group reaffirmed its focus on micro, small, and medium enterprises (MSMEs).
'This transformation marks our evolution into a one-stop financial services provider, offering borrowing, investing, insurance, payments, and savings solutions seamlessly, 24 hours a day,' said Dr. Mwangi.
He emphasized that despite the transformation, Equity remains 'unwaveringly committed to supporting micro, small, and medium enterprises,' highlighting that 45% of all SME loans disbursed in Kenya between January and July 2025 originated from Equity.
Dr. Mwangi added, 'Our focus has shifted to product innovation, with our product houses actively rolling out new offerings to empower our customers and unlock greater opportunities for wealth creation.'
Social impact and inclusion
The Equity Group Foundation (EGF) continued to advance its mission of transforming lives through social impact investments across education, enterprise, health, and climate resilience. In Q3 2025, 145 Equity Leaders Program scholars secured fully funded global university scholarships worth Kshs 3.8 billion (USD 29.47 million), including 16 placements to Ivy League universities.
Through its Enterprise Development and Financial Inclusion pillar, 30,000 entrepreneurs were trained, while 91,000 MSMEs accessed Kshs 38 billion in credit. The Foundation also facilitated loans worth Kshs 78 billion to MSMEs under the Young Africa Works program in partnership with the Mastercard Foundation.
The Foundation's Food and Agriculture and Energy, Environment, and Climate Change pillars trained 80,000 farmers in climate-smart agriculture and distributed over 535,000 clean-energy solutions, impacting 2.1 million people and planting 39.6 million trees. Its health arm, Equity Afya, expanded to 147 medical centers in Kenya and the DRC, serving over 4.3 million patients.
Equity Group's continued innovation and resilience earned it the African Banker Award 2025 for 'Best Regional Bank in East Africa' and recognition as Kenya's Most Valuable Brand for the second consecutive year.
IGIHE
Source : https://en.igihe.com/news/article/equity-group-records-32-growth-in-profit-after-tax
