NAIROBI, Kenya – Equity Group Holdings has reported a 32 per cent increase in net profit to Sh45.5 billion for the first six months of 2026, with stronger regional operations, rising non-funded income and continued balance-sheet expansion driving the lender’s performance.
The banking group’s profit after tax rose from Sh34.6 billion in the first half of 2025 to Sh45.5 billion in the six months ended June 2026, marking another strong performance for one of East Africa’s largest financial institutions.
The results come as Equity continues to pursue a strategy centred on geographical diversification, digital transformation and expansion of its banking and non-banking businesses.
Income growth boosts profitability
Equity’s net interest income increased by 17 per cent to Sh69.3 billion from Sh59.3 billion a year earlier, reflecting continued growth in lending and the group’s ability to manage its balance sheet.
Total income rose by 25 per cent to Sh124.9 billion, compared with Sh100.2 billion in the first half of 2025.
A major contributor to the growth was non-funded income, which climbed 36 per cent to Sh55.6 billion from Sh40.9 billion.
Non-funded income accounted for 44.5 per cent of Equity’s total income, up from 40.8 per cent in the corresponding period last year.
The shift highlights the growing importance of income streams beyond traditional lending, including payments, foreign exchange, investment and other fee-generating businesses.
The group has increasingly positioned itself as a diversified financial services provider rather than relying solely on interest income.
Balance sheet expands
Equity’s balance sheet also recorded significant growth during the period.
Total assets increased by about 20 per cent to Sh2.16 trillion, while customer deposits grew 21 per cent to Sh1.6 trillion.
Net loans and advances rose 19 per cent to Sh981 billion, pointing to continued demand for credit across the markets in which the group operates.
Shareholders’ funds increased by 27 per cent to Sh350 billion, strengthening the group’s capital base as it expands its operations.
The latest figures also show the scale of Equity’s customer franchise. The group now serves approximately 23.3 million customers through its various physical and digital channels.
Regional operations strengthen group performance
Equity’s growth has increasingly been supported by its subsidiaries outside Kenya, as the group continues to diversify its earnings across East and Central Africa.
The strategy has helped reduce the group’s reliance on a single market while allowing it to tap into growing demand for financial services across the region.
The group’s previous financial results have also highlighted the increasing contribution of regional and diversification subsidiaries to its overall business. Equity’s 2025 results showed that subsidiaries accounted for a substantial share of group assets and revenue, reflecting the importance of its regional expansion strategy.
The broader banking sector has also benefited from stronger earnings conditions in 2026, with improved loan demand, margins and cost management supporting financial-sector performance.
Mwangi: Transformation driving results
Speaking during an investors’ briefing in Nairobi on Wednesday, Equity Group Managing Director and CEO James Mwangi attributed the performance to the group’s multi-year transformation programme.
“Equity’s half-year 2026 performance is the outcome of a multi-year transformation agenda focused on resilience, diversification, and technology enablement,” Mwangi said.
He added that the group had repositioned its operating model, strengthened its regional presence and invested heavily in digital and artificial intelligence-enabled capabilities.
“The Group has repositioned its operating model, strengthened its regional presence, and invested heavily in digital and AI-enabled capabilities to build an institution equipped for the future,” Mwangi said.
The emphasis on technology reflects Equity’s efforts to move more transactions and services onto digital platforms while using data and artificial intelligence to improve customer service and operational efficiency.
Stronger asset quality
The earnings growth has also been accompanied by an improvement in the quality of Equity’s loan portfolio.
Unaudited H1 2026 figures indicate that gross non-performing loans declined by more than a fifth to about Sh108.4 billion, even as net loans increased to Sh981 billion.
Loan-loss provisions also fell during the period, supporting the improvement in profitability.
The combination of stronger income growth, lower credit-loss provisions and expanding deposits has given Equity additional room to grow its lending business while maintaining its financial resilience.
The H1 results reinforce the group’s transformation from a predominantly Kenyan banking institution into a diversified regional financial services group, with its growing customer base, regional subsidiaries and technology investments increasingly central to its earnings strategy.
