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Equity Group records Sh48.8 billion profit after tax

The success is attributed to the group's diversified business model and prudent financial management.

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by JAMES GICHIGI

News27 March 2025 - 13:14
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In Summary


  • Equity Group Holdings has registered 12 per cent growth in profit after tax to Sh48.8 billion, up from Sh43.7 billion for the period ended 31st December 2024.
  • The Group’s profit before tax grew by 17 per cent was Sh60.7 billion, while earnings per share (EPS) rose by 11 per cent to Sh12.3.
Equity Group CEO James Mwangi [PHOTO: EQUITY BANK KENYA/X]


Equity Group Holdings has registered 12 per cent growth in profit after tax to Sh48.8 billion, up from Sh43.7 billion for the period ended December 31, 2024.

This reinforces the continued success of the Group’s diversified business model and prudent financial management.

The Group’s profit before tax grew by 17 per cent was Sh60.7 billion, while earnings per share (EPS) rose by 11 per cent to Sh12.3, signifying the Group's robust financial performance.

Regional operations contributed 49 per cent of total assets and 54 per cent of profit before tax.

As a demonstration of commitment to its shareholders, the Group proposed a dividend of Sh4.25 per share, a payout ratio of 34.5 per cent, reinforcing its track record of delivering value to its shareholders.

While releasing the full year 2024 results, Equity Group Holdings Managing Director James Mwangi said the resilience of the financial institution was demonstrated amid global economic landscape and challenges.

“Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group's liquidity and capital position remains strong, positioning us to better support our customers in the years ahead," Mwangi stated.

Meanwhile, the Group's total deposits grew to reach Sh1.4 trillion, with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise.

Its liquidity position remained strong, with cash and cash equivalents rising by 19 percent to Sh345 billion, while investment securities grew to Sh512 billion, contributing to an overall liquidity ratio of 57 per cent.

Equity Group's strategic focus on regional expansion and product diversification continues to drive growth with its regional subsidiaries contributing 49 per cent of total assets, 48 per cent of total loans and 54 per cent of profit before tax, further diversifying the revenue base.

The Kenya subsidiary, while still a major contributor, accounted for 46 per cent of total revenue.

Equity Bank Rwanda revenue grew Year on Year by 36 per cent, Tanzania by 20 per cent and DRC by nine per cent while PAT for Equity Bank Rwanda grew by 30 per cent Year on Year (YoY), Tanzania by 107 per cent, Uganda 186 per cent and DRC by 29 per cent, signaling increasing contributions from regional operations.

Equity Bank Kenya has in the past six months cut its base lending rate three times, sending a clear signal of its intent to grow its loan book as Kenya's economy shows signs of recovery.

The lowering of interest rates is expected to reduce the cost of borrowing, offering businesses access to more affordable credit while increased disposable income for households, thus stimulating consumer spending.

The value of business processed through Equity Mobile YoY increased by 67 per cent from Sh1.895 trillion to Sh3.174 trillion, while Equity Online for business (EazzyBiz) increased by 21 per cent from Sh3.165 trillion to Sh3.841 trillion.

The interoperable Pay With Equity (PWE) for merchants increased by 14 per cent from Sh1.884 trillion to Sh2.149 trillion, while ATM increased by 21 per cent from Sh398.6 billion to Sh481.4 billion.

"Equity Group remains committed to driving positive change. Our focus on financial inclusion, regional expansion, and sustainable growth will enable us to continue being a catalyst for economic empowerment and resilience across Africa,” Mwangi said.

He expressed optimism about the company’s future, adding that the Group would continue leveraging its strengths to create long-term value and impact for its shareholders and customers.

 

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