Equity Group Holdings Plc has announced a Profit After Tax (PAT) of Ksh48.8 billion for the financial year (FY) 2024, representing a 12% growth.

The Group, while releasing the full year 2024 results on Thursday, March 27, 2025, said that the growth is a reflection of the continued success of its diversified business model and prudent financial management.

Equity Group’s Profit Before Tax (PBT), on the other hand, grew by 17% to Ksh60.7 billion, while Earnings Per Share (EPS) rose by 11% to Ksh12.3 million.

According to the lender, regional operations contribute 49% of total assets and 54% of PBT.

Total deposits grew to reach Ksh1.4 trillion, with the customer base growing to 21.6 million, while asset quality improved by 100 basis points from Q1 2024 to Q4 2024.

“The Group’s liquidity position remains strong, with cash and cash equivalents rising by 19% to Ksh345 billion, while investment securities grew to Ksh512 billion, contributing to an overall liquidity ratio of 57%,” read part of a press release.

“With strong liquidity, capital buffers, and robust regional businesses, the Group is poised to maintain its leadership position in the region and continue driving sustainable growth.”

Equity Group Holdings Plc Managing Director and CEO Dr. James Mwangi said the Group’s liquidity and capital position remains strong, positioning it to better support its customers in the years ahead.

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This positions the Group to effectively underpin its Africa Recovery and Resilience Plan (ARRP), a private sector-led development plan championed by Equity aimed at catalyzing, capacitating, connecting, and financing enterprises and households across Africa.

Equity Group announces dividend

“We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth,” said Mwangi.

At the same time, the Group demonstrated commitment to its shareholders by proposing a dividend of Ksh4.25 per share, a payout ratio of 34.5%.

This is supported by a return on equity (ROE) of 21.5% and a return on assets (ROA) of 2.8%, both of which are well above industry averages.

Due to the global operating environment characterized by unprecedented geopolitical shifts, the Group’s defensive and prudent approach to risk management was evident in its loan loss provisions, which amounted to Ksh20.2 billion.

The Non-Performing Loan (NPL) ratio remained below industry average at 12.2%, significantly lower than the 16.4% published industry average. NPL coverage stands at 71%, reinforcing the Group’s strong asset quality.

The value of business processed through Equity Mobile YoY increased by 67% from Ksh1.895 trillion to Ksh3.174 trillion, while Equity Online for business (EazzyBiz) increased by 21% from Ksh3.165 trillion to Kshs3.841 trillion.

The Pay With Equity (PWE) for merchants increased by 14% from Ksh1.884 trillion to Ksh2.149 trillion, with ATM increasing by 21% from Ksh398.6 billion to Ksh481.4 billion.

Results for subsidiaries

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

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According to the lender, the Kenya subsidiary, accounted for 46% of total revenue.

“Equity Bank Rwanda revenue grew YoY by 36%, Tanzania by 20% and DRC by 9% while PAT for Equity Bank Rwanda grew by 30% YoY, Tanzania by 107%, Uganda 186% and DRC by 29%, signaling increasing contributions from regional operations,” the press release adds.

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 the Kenya’s economy shows signs of recovery.

The lender said that the lowering of interest rates will reduce the cost of borrowing, offering businesses access to more affordable credit while for households it means increased disposable income thus stimulating consumer spending.