Equity Q1 net profit up 24pc to Sh18.3b on regional units
Business
By
Brian Ngugi
| May 20, 2026
Kenya’s largest bank by customers, Equity Group, posted a 23.8 per cent rise in first-quarter net profit driven by a surge in both interest and non-funded income.
Its net earnings in the period ended March 31 rose to Sh18.3 billion from Sh14.8 billion in a similar period a year earlier.
Regional subsidiaries outside Kenya accounted for half of the lender’s profitability, the bank said on Tuesday.
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Total income rose 15 per cent to Sh55.3 billion from Sh48.2 billion a year earlier. Net interest income also climbed 15 per cent to Sh33 billion, supported by a nine per cent growth in net loans.
Non‑funded income – comprising fees, commissions, and foreign exchange earnings – grew 14 per cent to Sh22.3 billion, reflecting deeper digital adoption and higher transaction volumes across the lender’s 22.7 million customer base, said the bank. The performance came against a difficult economic backdrop in the country, highlighting commercial banks as a bright spot in the battered economy.
Several corporates have issued a gloomy outlook for their performance amid geopolitical risks and muted local demand. Yet banks have emerged as a bright spot. Equity’s regional expansion paid off, becoming the primary engine of earnings.
Subsidiaries in Tanzania, Rwanda, and the Democratic Republic of Congo saw profit after tax leap 150 per cent, 36 per cent and 32 per cent, respectively. Equity Bank Tanzania contributed Sh1.04 billion, Equity Rwanda Sh1.5 billion, and Equity BCDC in DRC Sh5.0 billion.
Regional banking businesses now account for 52 per cent of Group banking assets and 50 per cent of banking profitability – a milestone in the Group’s pan‑African strategy, said the bank.
The local flagship unit, Equity Bank Kenya, delivered a 21 per cent profit rise to Sh10.3 billion, disbursing 36.2 per cent of the Sh101 billion in MSME loans extended in Kenya during the quarter.
Equity’s balance sheet strength also improved during the period. Total assets expanded 16 per cent to Sh2.04 trillion, driven by a 13 per cent rise in customer deposits to Sh1.48 trillion.
Asset quality tightened, with non‑performing loans (NPLs) improving to 10 per cent of the loan book from 14 per cent a year ago, while NPL coverage strengthened to 72 per cent.