Equity Group Posts Strong 2024 Results, Reinforces Regional Growth Strategy
From L-R: Sally Jepkorir, a Shareholder, Equity Group Chairman, Prof. Isaac Macharia, Equity Group Managing Director and CEO, Dr. James Mwangi and Daniel Kimotho, a Shareholder, during the Full Year 2024 Investor Briefing event.
Equity Group Holdings Plc has reported robust financial performance for 2024, driven by strategic diversification, innovation, and regional expansion. The Group’s strong liquidity, capital buffers, and diversified business model have positioned it for continued leadership in the region and sustainable growth.
While releasing the full-year results, Managing Director and CEO Dr. James Mwangi attributed the solid performance to the Group’s resilience amid a challenging global economic environment.
“Our financial strength allows us to seize opportunities presented by the regional economy while supporting our customers,” he stated.
Equity posted a Profit After Tax (PAT) of Kshs 48.8 billion, reflecting strong operational efficiency. Profit Before Tax (PBT) rose by 17% to Kshs 60.7 billion, while Earnings Per Share (EPS) increased by 11% to Kshs 12.3. The Group’s total deposits grew to Kshs 1.4 trillion, supported by a growing customer base of 21.6 million.
With liquidity remaining strong, cash and cash equivalents increased by 19% to Kshs 345 billion, while investment securities rose to Kshs 512 billion. The overall liquidity ratio stood at 57%, positioning the Group to advance its Africa Recovery and Resilience Plan (ARRP), aimed at catalyzing enterprise and household development across the continent.
The ARRP continues to drive transformation, supported by partnerships with Development Finance Institutions (DFIs), Microsoft, Mastercard, and AfDB. Through the Community Pass initiative, the Group is digitizing 10 million farming customers, enhancing financial inclusion. Equity has also collaborated with the World Food Programme to empower smallholder farmers.
To reward shareholders, the Group has proposed a dividend of Kshs 4.25 per share, representing a 34.5% payout ratio. The return on equity (ROE) stood at 21.5%, while the return on assets (ROA) was 2.8%, both exceeding industry averages.Regional subsidiaries continued to play a key role in revenue diversification, contributing 49% of total assets, 48% of total loans, and 54% of profit before tax.
Equity Bank Rwanda’s revenue grew by 36% year-on-year, Tanzania by 20%, and DRC by 9%. Profit After Tax for Uganda surged by 186%, Tanzania by 107%, Rwanda by 30%, and DRC by 29%.
To support economic recovery in Kenya, Equity Bank Kenya has cut its base lending rate three times in the past six months, aiming to expand its loan book. The lower rates are expected to boost borrowing for businesses and increase disposable income for households, spurring economic activity.
Despite global uncertainties, the Group maintained a prudent risk management strategy, with loan loss provisions amounting to Kshs 20.2 billion. The Non-Performing Loan (NPL) ratio stood at 12.2%, well below the industry average of 16.4%, while NPL coverage remained strong at 71%.
From L-R: Equity Group Chairman, Prof. Isaac Macharia, Equity Group Managing Director and CEO, Dr. James Mwangi and Equity Group Foundation Director Operations, Dr. Joanne Korir during the Full Year 2024 Investor Briefing event.
Equity’s Life Assurance business reported impressive growth, with Profit Before Tax rising by 58% to Kshs 1.5 billion. Policyholder funds delivered a gross return of 13.5%, reinforcing the Group’s capacity to provide value to its over 14 million policyholders since its inception in 2022.A key milestone in 2024 was the acquisition of a general insurance license, allowing Equity to offer a comprehensive range of insurance solutions.
The Bancassurance unit saw a 6% increase in premium collections, while insurance premium financing recorded a 50% rise in uptake.Digital transformation remained central to the Group’s operations, with 86% of transactions now processed digitally. Equity Mobile saw a 67% rise in transaction value to Kshs 3.174 trillion, while EazzyBiz for businesses grew by 21% to Kshs 3.841 trillion.
Merchant payments via Pay With Equity (PWE) increased by 14% to Kshs 2.149 trillion.Equity’s brand strength was recognized globally, ranking as the 2nd strongest banking brand worldwide in 2024. It was also named East and Central Africa’s most valuable brand at USD 450 million.
At the Think Business Banking Awards, Equity emerged as the Best Bank and won in categories such as Digital Banking, Trade Financing, and SME Banking.The Equity Leaders Program (ELP) continued to make an impact, with 113 scholars receiving full scholarships to top global universities.
To date, 29,515 students have benefited from the program, with over 970 scholars studying at prestigious institutions worldwide.Equity remains committed to climate action, having planted 35 million trees and extended USD 200 million in climate finance. The Group has also distributed 466,975 clean energy products and adopted global sustainability frameworks to enhance its environmental impact.
Dr. Mwangi reaffirmed Equity’s long-term commitment to financial inclusion and sustainable growth. “We will continue leveraging our strengths to create value and impact across Africa. Our focus remains on empowering businesses, individuals, and communities for a resilient future,” he stated.
