Equity Group Holdings Plc has once again demonstrated its prowess as a leader in the African financial services sector, delivering stellar results for the financial year 2024. The Group’s performance reflects its strategic focus on diversification, innovation, and regional expansion, coupled with an unwavering commitment to social impact and sustainability.
From robust financial metrics to transformative initiatives across multiple sectors, Equity Group continues to set benchmarks for excellence in banking and beyond.
Equity Group’s Financial Performance
Equity Group’s financial results for FY 2024 showcase its ability to thrive in challenging global economic conditions. The Group reported a Profit After Tax (PAT) of Kshs 48.8 billion, highlighting the success of its diversified business model and prudent financial management. Profit Before Tax (PBT) grew by an impressive 17% to Kshs 60.7 billion, while Earnings Per Share (EPS) increased by 11% to Kshs 12.3.
The Group’s total deposits surged to Kshs 1.4 trillion, reflecting the scale and reach of its deposit franchise. Its customer base expanded to 21.6 million, underscoring its growing influence across the region. Liquidity remains robust, with cash and cash equivalents rising by 19% to Kshs 345 billion. Investment securities also grew significantly to Kshs 512 billion, contributing to an overall liquidity ratio of 57%.
These strong financial metrics position Equity Group as a key driver of Africa’s economic recovery through its Africa Recovery and Resilience Plan (ARRP). This private-sector-led initiative aims to catalyze enterprises and households across Africa by providing financial tools, technological solutions, and capacity-building frameworks.
Strategic partnerships driving transformation
Equity Group has forged impactful partnerships with global organizations such as AfDB, Microsoft, Mastercard Corporation, and the World Food Programme. These collaborations aim to digitize farming operations for over 10 million customers under the Community Pass initiative and empower smallholder farmers through agribusiness programs.
The Group’s commitment to shareholders is evident in its proposed dividend payout of Kshs 4.25 per share, representing a payout ratio of 34.5%. With a return on equity (ROE) of 21.5% and a return on assets (ROA) of 2.8%, Equity continues to deliver exceptional value to its investors.
Regional expansion
Equity Group’s tri-engine approach integrates commercial priorities with social and sustainability goals, driving economic growth while creating societal impact. Regional subsidiaries now contribute significantly to the Group’s overall performance:
- Assets: Regional operations account for 49% of total assets.
- Loans: They contribute 48% of total loans.
- Profit Before Tax: Regional subsidiaries generate 54% of PBT.
Equity Bank Rwanda achieved a remarkable revenue growth of 36% year-on-year (YoY), while Tanzania recorded a revenue increase of 20%. Profit After Tax (PAT) growth was equally impressive: Rwanda grew by 30%, Tanzania by an astounding 107%, Uganda by 186%, and DRC by 29%.
In Kenya, Equity Bank has cut its base lending rate three times in six months, signaling its intent to grow its loan book amid signs of economic recovery. Lower interest rates are expected to reduce borrowing costs for businesses while increasing disposable income for households.
Risk management and Asset quality
Amid global geopolitical shifts, Equity Group maintained a defensive approach to risk management with loan loss provisions amounting to Kshs 20.2 billion. The Non-Performing Loan (NPL) ratio stood at a commendable 12.2%, well below the industry average of 16.4%. NPL coverage reached an impressive 71%, underscoring the Group’s strong asset quality.
Insurance business expansion
Equity Life Assurance continues to register stellar performance with Profit Before Tax growing by 58% YoY to Kshs 1.5 billion from Kshs 934 million. The acquisition of a general insurance license enhances the Group’s ability to offer comprehensive insurance solutions across corporate, SME, and retail segments.
The Bancassurance unit has seen premium collections grow by 6%, despite market challenges. A significant uptick in insurance premium financing solutions—50%—reflects Equity’s dedication to supporting customers during uncertain times.
Digital transformation
Equity Group has modernized its digital channels, which now process an impressive 86% of all transactions. Through its integrated digital platform ONE Equity, customers can access a wide range of products under one umbrella.
Key digital milestones include:
- Transactions via Equity Mobile grew by an astonishing 67% YoY.
- Equity Online for business (EazzyBiz) transactions increased by 21%.
- Pay With Equity (PWE) for merchants rose by 14%.
- ATM transaction volumes grew by 21%.
Branches are evolving into hubs for SMEs and corporates, with transaction volumes increasing by another remarkable margin—21%.
Global recognition and awards
Equity Bank was ranked as the second strongest banking brand globally in Brand Finance’s rankings for FY2024 and remains the most valuable brand in East and Central Africa at USD $450 million (KES $64 billion). It also earned top honors in categories such as digital banking, trade financing, agriculture financing, product innovation, SME banking, insurance provision, and wealth management.
Social Impact Programs
Equity Leaders Program (ELP) continues transforming lives through education scholarships at top global universities. To date:
- Over 970 scholars have benefited from full scholarships.
- A new cohort of 750 scholars joined pre-university internships.
- Cumulatively, ELP has supported over 29,515 scholars.
In climate action initiatives:
- Over USD $200 million has been extended in climate finance.
- More than 35 million trees have been planted.
- Nearly half a million clean energy products have been distributed.
Economic empowerment programs have trained over two million women and youth in financial education while disbursing loans worth Kshs $340 billion under the Young Africa Works Program.
Healthcare initiatives
Equity Afya Clinics have recorded over three million patient visits across their network of outpatient medical centers. These clinics provide affordable healthcare services that align with Equity’s holistic approach toward improving livelihoods.
Looking ahead
Dr. James Mwangi encapsulated Equity’s vision: “Our focus on financial inclusion, regional expansion, and sustainable growth will enable us to continue being a catalyst for economic empowerment across Africa.”
Read About: MTN and Airtel sign major network-sharing deal
