In an era where economic challenges loom large, Equity Group Holdings Plc has emerged as a shining beacon of financial success in 2024. At the heart of this achievement lies a “golden ball” strategy that emphasizes diversification, innovation, and strategic regional expansion. The Group’s remarkable financial results not only showcase its resilience but also highlight its role as a key player in East Africa’s financial landscape.

In Summary, Equity Group Holdings registered 12% growth in Profit After Tax to Kshs. 48.8 billion up from Kshs. 43.7 billion for the period ended 31st December 2024, reinforcing the continued success of the Group’s diversified business model and prudent financial management.

The Group’s Profit Before Tax grew by 17% to Kshs 60.7 billion, while Earnings Per Share (EPS) rose by 11% to Kshs 12.3, signifying the Group’s robust financial performance. Regional operations contributed 49% of total assets and 54% of profit before tax.

As a demonstration of commitment to its shareholders, the Group proposed a dividend of Kshs 4.25 per share, a payout ratio of 34.5%, reinforcing its track record of delivering value to its shareholders.

A Resilient Performance

During a recent press release, Dr. James Mwangi, the Managing Director and CEO of Equity Group, expressed pride in the Group’s performance against a backdrop of global economic uncertainty.

“The golden ball of our financial strategy allows us to seize unprecedented opportunities for growth across the region,” he remarked, reinforcing the importance of strategic agility in navigating complex markets.

Equity Group’s financial achievements for FY 2024 speak volumes. The company reported a Profit After Tax (PAT) of Kshs 48.8 billion, backed by a Profit Before Tax (PBT) increase of 17% to Kshs 60.7 billion. Earnings Per Share (EPS) also climbed by 11% to Kshs 12.3, underscoring a strong trajectory of fiscal performance.

Growing Stronger Together

As part of its growth strategy, Equity Group has cultivated a robust customer base now numbering 21.6 million. Total deposits soared to Kshs 1.4 trillion, highlighting the Group’s effective strategies in attracting and retaining customers. The liquidity position remains strong, with cash and cash equivalents rising by 19% to Kshs 345 billion and investment securities increasing to Kshs 512 billion, leading to a liquidity ratio of 57%.

This solid foundation enables Equity to support its ambitious Africa Recovery and Resilience Plan (ARRP), designed to stimulate economic development across the continent.

Through partnerships with organizations such as the African Development Bank (AfDB), Microsoft, and Mastercard, the Group is pioneering initiatives that digitize financial services and enhance financial inclusion, particularly for vulnerable smallholder farmers.

A Commitment to Shareholders

Equity Group’s commitment to delivering shareholder value is evident in its proposed dividend of Kshs 4.25 per share, yielding a payout ratio of 34.5%. With a return on equity (ROE) of 21.5% and return on assets (ROA) of 2.8%, the Group far exceeds industry benchmarks, affirming its financial health and commitment to generating value for investors.

The Group’s innovative approach integrates commercial, social, and sustainability priorities, underlining its role as a leader in both the financial services industry and the broader community.

Regional subsidiaries have become increasingly important to the Group’s success, contributing significantly to total assets and profits.

In particular, Equity Bank’s operations in the DRC, Rwanda, and Tanzania saw substantial growth in revenue and profitability, reinforcing the power of regional diversification.

Empowering Businesses and Communities

In a strategic move to support economic recovery, Equity Bank has actively reduced its base lending rate. This initiative signals the Group’s intent to make credit more accessible, fostering growth for both businesses and households.

By lowering borrowing costs, the bank not only stimulates consumer spending but also affirms its commitment to supporting the economy.

Equity Group’s strong approach to risk management is highlighted by its loan loss provisions totaling Kshs 20.2 billion and a Non-Performing Loan (NPL) ratio of 12.2%, well below the industry average. This prudence has safeguarded the Group’s asset quality while allowing it to continue serving its customers effectively.

Expanding Horizons: Insurance and Technology

The Group’s Life Assurance business has also marked a milestone, with Profit Before Tax showing robust growth of 58% to Kshs 1.5 billion. The introduction of a general insurance license will enhance the Group’s portfolio, allowing it to provide a comprehensive suite of insurance solutions that cater to diverse customer needs.

Equity Group continues to invest significantly in technology, modernizing its digital platforms to enhance customer experience. With 86% of transactions processed digitally, services such as the ONE Equity platform offer customers seamless access to a wide range of financial products, showcasing the Group’s commitment to innovation.

Recognition and Social Impact

Equity Bank’s status as the 2nd strongest banking brand in the world and the most valuable brand in East and Central Africa is a testament to its dedication to excellence. These accolades reflect the Group’s consistent performance and its unwavering commitment to innovation in the financial services sector.

Beyond its financial milestones, Equity Group actively engages in social responsibility, particularly through its Equity Leaders Program, which supports thousands of scholars in pursuing higher education. The Group has also championed climate initiatives, planting over 35 million trees and investing in climate resilience projects.

Looking Ahead

As Dr. Mwangi concluded, “The golden ball of our strategy positions Equity Group as a change agent. Our unwavering focus on financial inclusion, sustainable growth, and regional expansion enables us to create lasting value and positive impact for our customers and stakeholders across Africa.” With such a commitment to excellence and innovation, Equity Group is well-positioned to continue its trajectory of success and resilience in the years to come.