Equity Group has announced its full-year 2024 financial results, showcasing resilient performance and sustained regional growth. The Group recorded a Profit After Tax (PAT) of Kshs 48.8 billion, underscoring the strength of its diversified business model, robust risk management, and regional expansion strategy.
Commenting on the results, Dr. James Mwangi, Group Managing Director and CEO, stated, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength positions us to seize opportunities across the region and support our customers through continued growth.”
Strong Financial Performance
- Profit Before Tax (PBT): Kshs 60.7 billion (+17% YoY)
- Earnings Per Share (EPS): Kshs 12.3 (+11%)
- Deposits: Grew to Kshs 1.4 trillion with the customer base expanding to 21.6 million
- Liquidity: Cash and cash equivalents rose by 19% to Kshs 345 billion, while investment securities stood at Kshs 512 billion, resulting in a strong liquidity ratio of 57%.
The Group proposed a Kshs 4.25 per share dividend (34.5% payout ratio), backed by a Return on Equity (ROE) of 21.5% and a Return on Assets (ROA) of 2.8%, both outperforming industry averages.
Africa Recovery and Resilience Plan (ARRP) Impact
Through the ARRP, Equity continues to support enterprises, households, and communities across the continent by building capacity and providing affordable financing. Partnerships with the AfDB, Microsoft, Mastercard, and the World Food Programme have driven key initiatives, including digitizing 10 million farmers under the Community Pass and expanding access to agribusiness financing.
Regional Subsidiaries Driving Growth
Equity’s regional subsidiaries contributed:
- 49% of total assets, 48% of total loans, and 54% of Profit Before Tax.
- PAT Growth: Rwanda (+30%), Tanzania (+107%), Uganda (+186%), DRC (+29%).
Equity Bank Kenya, while remaining a major contributor, accounted for 46% of Group revenue. Notably, the Bank has cut its base lending rate three times in the past six months to stimulate credit uptake and support economic recovery.
Strong Asset Quality Amid Global Headwinds
- Loan loss provisions: Kshs 20.2 billion
- NPL ratio: 12.2%, well below the industry average of 16.4%
- NPL coverage: 71%, reflecting prudent risk management
Diversified Business Model and Digital Transformation
The Group’s Life Assurance business posted a 58% growth in Profit Before Tax to Kshs 1.5 billion. Equity also acquired a general insurance license, expanding its insurance offering across corporate, SME, and retail segments.
Equity’s digital transformation continues to drive operational efficiency:
- 86% of all transactions are now processed through digital channels.
- Equity Mobile processed Kshs 3.17 trillion (+67% YoY).
- EazzyBiz (for businesses) processed Kshs 3.84 trillion (+21%).
- Pay With Equity (PWE) transactions grew by 14%.
- Branch transactions rose by 21% to Kshs 5.05 trillion, boosted by Cash Deposit Machines and SME-focused services.
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