Most of Equity Group’s Lending Has Left Kenya. Most of Its Profit Has Not
Equity Group posted a record half-year profit of KSh45.5 billion, and for the first time its businesses outside Kenya hold more than half the group’s deposits, loans and banking assets. The post Most of Equity Group’s Lending Has Left Kenya. Most of Its Profit Has Not appeared first on The Rio Times .
Equity Group Holdings reported a half-year profit of KSh45.5 billion (approximately US$351 million) for the period ending June 2026, marking a 32% increase compared to KSh34.6 billion in the same period last year. The company's pre-tax profit also rose 39% to KSh57.8 billion. Total income grew by 25% to KSh124.9 billion, driven by a 36% increase in non-funded income to KSh55.6 billion, which now constitutes 44.5% of the total income.
Net interest income grew by 17% to KSh69.3 billion, while net loans increased by 19% to KSh981 billion. Overall, asset quality improved significantly, with the non-performing loan ratio falling to 9.5% from 13.7%, coverage rising to 70% from 68%, and the cost of risk decreasing to 1.4% from 1.7%. The shift in the company's operations is evident as subsidiaries outside Kenya now hold 51% of group deposits, 54% of loans, and 52% of banking assets, accounting for 42% of the group's banking profitability and 47% of its banking revenue.
The company serves 23.3 million customers through 410 branches, 886 ATMs, 92,572 agency outlets, and 1.4 million merchant points, with 98.3% of transactions occurring outside a branch and 89.7% being digital. Despite the strong performance, the company did not announce an interim dividend or disclose earnings per share. The shift to a diversified, regional, and technology-enabled financial services group has been a deliberate strategy, positioning the company for growth in fifteen countries and 100 million customers by 2030.
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