BANKING | Kenyan Equity Bank Profits Rise 25% in Q1 2024 to Become the World’s Second Strongest Financial Brand

BitKE · 2026-03-07T11:24:09+00:00

Equity Bank Group reported a 25% increase in net profit for Q1 2024, reaching KES 16 billion, driven by growth in subsidiaries across East Africa. The bank also improved its asset base amidst tightened credit measures and a diversified loan portfolio.

BitKE

2026-03-07 11:24:09

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Equity Bank Group saw a significant increase in net profit for the first quarter of 2024, rising to KES 16 billion ($123 milllion) from KES 12.8 billion ($98.45 million) in the corresponding period of 2023, driven by strong growth in its subsidiary businesses.

When unveiling the bank’s Q1 2024 results on May 13 2024, Equity Group MD and CEO, James Mwangi, also hailed the rapid growth in Uganda, Rwanda, Tanzania, DRC, and South Sudan.

During the period, gross profits increased by 21 per cent to KES 20.4 billion with stronger earnings reported by:

The Kenyan subsidiary which now contributes 41% of the revenue
Followed by EBCDC with 32%
Equity Bank Uganda at 8%, and
Equity Bank Rwanda at 6%

“The regional diversification of the banking business has worked very well for us. As we can see profit before tax, the regional subsidiaries are contributing 63 per cent of the entire profit,” said Dr Mwangi.

The Group also solidified its position as the second-largest bank in East Africa in terms of asset base, reaching KES 1.7 trillion by the end of the quarter, up from KES 1.53 trillion during the same period in 2023.

Due to a challenging non-performing loan environment characterized by heightened credit risk, the lender implemented stricter credit risk underwriting measures. This resulted in a modest three percent year-on-year increase in the loan book, a significant contrast to the 26 percent growth rate observed for the year ending December 2023.

As a consequence, there was a shift in lending allocation from private-sector credit towards public-sector lending, particularly through investments in government securities which experienced a substantial growth of 21 percent.

The loan-to-deposit ratio stood at 63 per cent as of March 31 2024 compared to 65.3 per cent in the corresponding quarter of 2023. Interest income for the period grew to 33 per cent compared to 30 per cent in December last year [2023].

The Group, however, maintained a well-diversified loan portfolio, with 40 percent allocated to corporates and large enterprises, 26 percent to micro, small, and medium enterprises, 28 percent to retail and consumer sectors, and six percent to public service institutions across various sectors and segments of the real economy.

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