Table of Contents
Key Points
- The bank’s net profit rose 12% to Ksh48.82 billion ($377.3 million) in 2024, driven by revenue growth and disciplined cost management
- Subsidiaries contributed 54% of pre-tax profit, with Equity Bank Uganda’s profit soaring 186% and Equity Bank Tanzania up 107%.
- Customer deposits hit Ksh1.4 trillion ($10.84 billion), while a Ksh4.25 per share dividend reflects a 34.5% payout ratio.
Equity Group, East Africa’s largest financial services provider, led by Kenyan banker James Mwangi, delivered another record-breaking performance in 2024.
The lender’s profit for the fiscal year ended Dec. 31 2024 rose 12 percent to Ksh48.82 billion ($377.3 million), up from Ksh43.7 billion ($338 million) in 2023, driven by a strong business model, disciplined cost management, and continued regional expansion.
Equity Group’s profit rises on revenue growth
According to the group’s audited financial statements, total income—comprising interest and non-funded income—grew by 6 percent, reaching Ksh193.8 billion ($1.5 billion), while total costs increased marginally by 2 percent to Ksh133.1 billion ($1.03 billion). The bank’s ability to control expenses while growing revenue played a key role in boosting profitability.
Commenting on the results, Equity Group Managing Director and CEO James Mwangi said, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economies present diversified levers for growth. The Group’s liquidity and capital position remains very strong, positioning us to better support our customers in the years ahead.”
During the period, customer deposits surged to Ksh1.4 trillion ($10.84 billion), with the customer base expanding to 21.6 million, highlighting the bank’s growing reach. The Group’s liquidity remained solid, with cash and cash equivalents rising 19 percent to Ksh345 billion ($2.67 billion), while investment securities grew to Ksh512 billion ($3.96 billion), contributing to an overall liquidity ratio of 57 percent.
Equity’s regional units boost profitability
Under James Mwangi, Equity Group has strengthened its presence across Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo. As the largest shareholder with a 3.39-percent stake—equivalent to 127.8 million shares—Mwangi has overseen the lender’s transformation into a leading Pan-African financial institution.
Regional subsidiaries continue to play a growing role in Equity’s success, contributing 49 percent of total assets, 48 percent of total loans, and 54 percent of profit before tax. Equity Bank Rwanda’s revenue jumped 36 percent year-over-year, while Equity Bank Tanzania and EquityBCDC posted 20 percent and 9 percent growth, respectively. Profit after tax surged across the region, with Equity Bank Tanzania up 107 percent, Equity Bank Uganda soaring 186 percent, and Equity Bank Rwanda rising 30 percent.
With this strong performance, the group’s retained earnings climbed from Ksh202.9 billion ($1.57 billion) to Ksh232.8 billion ($1.8 billion). To reward shareholders, the board proposed a dividend of Ksh4.25 ($0.03290) per share, reflecting a 34.5 percent payout ratio. This underscores the bank’s commitment to delivering value, supported by a return on equity (ROE) of 21.5 percent and a return on assets (ROA) of 2.8 percent—both well above industry averages.
