Equity Group has opened the 2026 financial year with stronger earnings and balance sheet growth, reporting higher profits, expanded lending activity, and rising customer deposits in the first quarter driven by continued performance in its core banking and MSME segments.
The group posted a 24% increase in Profit After Tax to Sh19.1 billion in Q1 2026, up from Sh15.4 billion recorded in a similar period in 2025. The performance was supported by stronger results across its subsidiaries and steady growth in lending and deposit mobilisation.
At the banking subsidiary level, Equity Bank Kenya reported a Profit After Tax of Sh10.3 billion, a 21% rise from Sh8.5 billion in Q1 2025. The bank said the growth was backed by continued expansion of its core banking operations and sustained activity in the small and medium-sized enterprise sector.
During the quarter, MSME lending remained a central driver of growth. Equity Bank Kenya accounted for 36.2% of the Sh101 billion MSME loans disbursed in Kenya between January and March 2026, maintaining its leading position in the segment.
Customer deposits rose by 13% to Sh1.48 trillion, reflecting continued inflows from retail and business customers. Net loans grew by 9% to Sh873.5 billion, while total assets expanded by 16% to Sh2.04 trillion, pointing to steady growth in the group’s balance sheet.
Total income for the group increased by 15% to Sh55.3 billion, while Profit Before Tax rose by 31% to Sh24.5 billion, supported by improved earnings from its diversified operations across different markets and business lines.
The results also showed mixed shifts in efficiency and profitability indicators. Net Interest Margin stood at 8.0%, reflecting stable returns from lending activities. The Cost-to-Income Ratio was recorded at 50.6%, showing a 3.6% movement during the period. Return on Average Equity came in at 22.6%, while Return on Average Assets stood at 3.9%.
Equity Group attributed the performance to its diversified business model, with continued focus on retail banking, MSME lending, and digital financial services across its regional footprint. The group said its strategy remains anchored on financial inclusion and expansion into underserved markets.
The strong performance in MSME lending continued to reflect the bank’s focus on small and medium enterprises, which remain central to economic activity in Kenya and surrounding markets. The group said this segment continues to support its broader transformation agenda.
Growth in deposits and lending was also supported by sustained customer confidence, even as the banking sector operates under shifting credit conditions and wider macroeconomic pressures.
Equity Group, which has expanded its presence across East and Central Africa, said the results highlight continued momentum in its regional operations and diversified revenue base. The rise in total assets to Sh2.04 trillion also strengthens its capacity to support future lending and investment growth, particularly in digital and retail banking.
The group is expected to maintain its focus on efficiency, risk management, and digital expansion as it seeks to sustain performance in the coming quarters.