Equity Group’s first-half 2026 results show more than headline profit growth. Profit after tax rose 32% to KSh45.5 billion as non-funded income expanded faster than net interest income, customer deposits strengthened and regional subsidiaries increased their role in the group.

Asset quality also improved, with the reported NPL ratio returning to single digits.

The investor question is whether this increasingly diversified earnings mix can make Equity more resilient across interest-rate and economic cycles.

Key Overview

• Profit after tax: KSh45.5bn, up 32%.
• Net interest income: KSh69.3bn, up 17%.
• Non-funded income: KSh55.6bn, up 36%.
• Customer deposits: KSh1.59tn, up 21%.
• Regional subsidiaries: 47% of banking PBT.
• NPL ratio: 9.5%, down from 13.7%.
• ROE: 26.5%.
• EPS: KSh11.61.

Equity Group H1 Results Show 32% Profit Growth to KSh45.5B

Equity Group’s latest earnings suggest its growth story is becoming less dependent on one country and one source of banking income.

For the six months ended June, profit after tax rose 32% to KSh45.5 billion from KSh34.6 billion a year earlier, while profit before tax rose 39% to roughly KSh57.8 billion.

That profit growth materially exceeded the pace of balance-sheet expansion.

Total assets increased 20% to KSh2.16 trillion, while customer deposits increased 21% to KSh1.59 trillion.

For shareholders, the stronger question is therefore not simply how quickly Equity became larger.

It is whether each shilling of assets is producing better-quality earnings.

Non-Funded Income Is Growing Faster

Interest income remains Equity’s biggest revenue engine, but the mix is changing.

Net interest income grew 17% to KSh69.3 billion.

By comparison, non-funded income climbed 36% to KSh55.6 billion.

That pushed non-funded income to 44.5% of total income, up from 40.8% a year earlier.

This matters because non-funded income can come from payments, transactions, commissions, foreign exchange, trade finance and other activities that do not depend directly on earning a lending spread.

It should not all be described as “fee income.”

A more diversified revenue mix can make bank earnings less sensitive to one interest-rate environment, although transaction and market-related income can also fluctuate.

Regional Banking Is Becoming Core

The geographic story is just as important.

Equity’s subsidiaries outside Kenya contributed 47% of PBT, while accounting for 52% of banking assets, 54% of customer loans and 51% of deposits.

That is meaningful diversification.

Equity Bank Kenya remains highly profitable, but DRC, Rwanda, Tanzania and the wider regional network are increasingly shaping group results.

The DRC business remains particularly important, while Tanzania is growing rapidly from a smaller base.

For shareholders, regionalisation spreads opportunity across several African economies.

It also adds currency, regulatory, political and credit risks that must be managed across different markets.

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Asset Quality Has Improved

Perhaps the strongest quality signal is the loan book.

The reported NPL ratio improved to 9.5% from 13.7% a year earlier, returning the group to a single-digit ratio.

At the same time, net loans expanded 19% to about KSh981 billion.

That combination is more encouraging than loan growth alone.

A bank can increase profits quickly by expanding credit, but shareholder value can eventually suffer if those loans later become non-performing.

Improving asset quality while lending grows suggests stronger earnings are not simply coming from taking more credit risk.

Returns Remain Strong

Equity reported return on equity of 26.5% and return on assets of 4.5%.

Earnings per share reached KSh11.61, up 32%.

Those figures show that balance-sheet growth is translating into shareholder earnings rather than simply increasing the size of the institution.

However, investors should still watch whether regional businesses can eventually approach the profitability generated by Kenya.

Equity Group H1 2026 earnings show profit after tax rising from KSh34.6 billion to KSh45.5 billion, non-funded income increasing from KSh40.9 billion to KSh55.6 billion, assets rising to KSh2.16 trillion and the NPL ratio falling from 13.7% to 9.5%. Regional subsidiaries contribute 47% of banking profit before tax.

What Investors Should Watch

The next phase should be judged on four things:

• Whether non-funded income remains strong;
• Whether NPLs continue improving;
• Whether regional subsidiaries increase profitability;
• Whether deposit growth continues funding loan expansion without excessive wholesale borrowing.

Equity’s diversification is clearly increasing.

The question is whether that diversification continues improving the quality and predictability of shareholder earnings.

Conclusion

Equity Group’s H1 performance is stronger than a 32% profit headline suggests.

The group grew income faster than its balance sheet, expanded non-funded revenue, strengthened deposits and returned its NPL ratio to single digits.

Regional subsidiaries are also becoming large enough that Equity increasingly looks like a pan-African banking group rather than a Kenyan bank with foreign subsidiaries.

For shareholders, that can improve resilience.

But the next test is consistency: maintaining strong returns while managing credit, currency and execution risk across a much larger regional platform.

FAQs

Is Equity becoming less dependent on Kenya?

Yes, in relative terms. Regional subsidiaries now account for close to half of banking profit before tax and more than half of several major balance-sheet measures. Kenya remains a critical and highly profitable market.

Why does non-funded income matter?

It broadens revenue beyond lending spreads. That can improve earnings diversification, although individual components such as foreign-exchange and transaction income can still fluctuate.

Is the lower NPL ratio important?

Yes. Falling NPLs while loans are growing suggests improving asset quality rather than profit growth driven purely by aggressive lending.

Did Equity declare an interim dividend?

The public results material reviewed for this article does not establish an interim dividend declaration, so none should be inferred.

Sources: Equity Group Investor Relations; Citizen Digital; Equity Group H1 2026 earnings-call transcript via Investing.com; Khusoko; Nairobi Securities Exchange.

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