From L-R Equity Bank Tanzania Non-Executive Director, Evelyn Rutagwenda, Equity Group Managing Director and CEO, Dr. James Mwangi, Equity Group Chairman, Prof. Isaac Macharia, and Equity Group Non-Executive Director. From L-R Equity Group Non-Executive Director, Dr. Lakshmi Shyam-Sunder, Equity Group Managing Director and CEO, Dr. James Mwangi, Equity Group Chairman, Prof. Isaac Macharia, and Equity Group Non-Executive Director.By Mulengera ReportersEquity Group Holdings Plc has reported a 32% increase in profit after tax to approximately USh1.31 trillion (KSh45.5 billion) for the first half of 2026, up from about USh994 billion (KSh34.6 billion) a year earlier.Profit before tax rose 39% to approximately USh1.66 trillion (KSh57.8 billion), compared with USh1.19 trillion (KSh41.5 billion) in the same period last year, as the financial services group benefited from balance-sheet growth, stronger regional subsidiaries and increased non-funded income.Equity said the performance reflected the continued transformation of the group into a diversified, technology-enabled Pan-African financial services institution.Balance sheet expandsThe group’s balance sheet expanded 20% to approximately USh62.1 trillion (KSh2.16 trillion), from about USh51.7 trillion (KSh1.80 trillion).Customer deposits increased 21% to approximately USh45.7 trillion (KSh1.59 trillion), while the net loan book grew 19% to about USh28.2 trillion (KSh981 billion), up from approximately USh23.7 trillion (KSh825 billion).Shareholders’ funds also strengthened, rising 27% to approximately USh10.1 trillion (KSh350 billion).The group said loan growth was spread across its Corporate, Retail, MSME and Public Sector Institutions segments, with Tanzania, the Democratic Republic of Congo and Uganda among the strongest contributors.Kenya business reboundsEquity Bank Kenya continued its recovery, reporting a 32% increase in profit after tax to approximately USh739 billion (KSh25.7 billion) from about USh560 billion (KSh19.5 billion).The Kenyan subsidiary’s assets grew 13%, supported by a 24% increase in customer deposits and an 8% rise in loans.The bank also recorded double-digit quarter-on-quarter loan growth for the first time since the third quarter of 2021, with loans increasing by 11%.Equity said it maintained its leadership in lending to micro, small and medium-sized enterprises, disbursing 36% of the approximately USh2.90 trillion (KSh101 billion) in MSME loans issued in Kenya between January and March 2026.Regional operations drive growthEquity’s regional subsidiaries continued to increase their contribution to group performance, now accounting for 42% of banking profitability and 52% of banking revenue.Equity BCDC in the Democratic Republic of Congo recorded a 30% increase in profit after tax to approximately USh339 billion (KSh11.8 billion).Equity Rwanda’s profit after tax rose 12% to approximately USh83 billion (KSh2.9 billion), while Equity Tanzania delivered an 82% increase to about USh57.5 billion (KSh2 billion).The regional subsidiaries now account for 51% of group deposits, 54% of loans and 52% of banking assets, highlighting the growing importance of Equity’s Pan-African expansion strategy.Non-funded income rises sharplyNon-funded income was a major driver of the group’s performance, increasing 36% to approximately USh1.60 trillion (KSh55.6 billion) from about USh1.18 trillion (KSh40.9 billion).Its contribution to total income increased to 44.5%, from 40.8% in the first half of 2025.Net interest income also strengthened, rising 17% to approximately USh1.99 trillion (KSh69.3 billion) from USh1.70 trillion (KSh59.3 billion).Total income grew 25% to approximately USh3.59 trillion (KSh124.9 billion), compared with USh2.88 trillion (KSh100.2 billion) a year earlier.The increase in non-funded income, Equity said, underscores the group’s diversified business model and growing contribution from payments, insurance and other financial services.Insurance business gains momentumEquity Insurance Group continued to expand, with gross written premiums rising 24% to approximately USh184 billion (KSh6.4 billion).Profit before tax increased 34% to approximately USh35.9 billion (KSh1.25 billion).The life and general insurance businesses generated approximately USh129 billion (KSh4.5 billion) and USh17.2 billion (KSh600 million) respectively, while the health insurance business generated about USh34.5 billion (KSh1.2 billion) in gross written premiums.Equity said insurance is increasingly becoming a significant third pillar of growth alongside banking and payments.Asset quality improvesThe group also reported an improvement in asset quality, with the non-performing loan ratio falling to 9.5% from 13.7%.NPL coverage increased to 70% from 68%, while loan-loss provisions declined by 6% year-on-year.Cost of risk improved to 1.4%, from 1.7%, which Equity attributed to disciplined underwriting, improved analytics and a more diversified loan portfolio.Operational efficiency also improved, with the cost-to-income ratio falling to 48.6% from 51.7%.Return on assets stood at 4.5%, while return on equity reached 26.5%.Digital transformation acceleratesTechnology remained central to Equity’s growth strategy, with 98.3% of transactions now taking place outside branches and 89.7% processed through digital platforms.The group now serves 23.3 million customers through digital and physical channels, including Equity Online, Eazzy FX, the Equity Mobile App, *247# and Equitel.Its physical network comprises 410 branches, 886 ATMs, 92,572 agency outlets and 1.4 million merchants.Equity said it is also investing heavily in artificial intelligence and staff development. About 82% of its workforce has completed a business-focused generative AI course, while 406 employees have been admitted to master’s programmes through WorldQuant University in Financial Engineering and Applied AI.Staff completed 119,980 hours of guided AI instruction, the group said.CEO points to Pan-African growthWhile releasing the results, Equity Group Managing Director and CEO Dr James Mwangi said the performance came against a backdrop of resilient economic growth across the region.Kenya is projected to grow by 4.5%-5%, while the DRC is expected to expand by 5.6%, Tanzania by 5.9%, Uganda by 6.4%, Rwanda by 6.8% and South Sudan by 20%, according to the group.“Equity’s half-year 2026 performance is the outcome of a multiyear transformation agenda focused on resilience, diversification, and technology enablement,” Mwangi said.He said the group had repositioned its operating model, strengthened its regional presence and invested in digital and AI-enabled capabilities.“Our H1 2026 performance reflects the success of our deliberate transformation into a diversified, regional, technology-enabled financial services Group,” Mwangi said.“We are building a future-ready institution; scalable, secure, and impact-led, anchored in digital capabilities, staff upskilling, and a culture of disciplined execution.”Foundation expands social impactThe Equity Group Foundation continued to expand its education, enterprise development, agriculture, climate and financial inclusion programmes across Africa.The foundation said it has trained more than one million entrepreneurs and facilitated more than USh12.5 trillion (KSh436 billion) in credit access to MSMEs.Its Wings to Fly and Elimu scholarship programmes have benefited more than 60,000 scholars, while the Equity Leaders Program has recorded more than 10,500 cumulative paid internships.In agriculture, the foundation is implementing the US$25 million SASTAIN programme in partnership with the Mastercard Foundation, targeting 60,000 smallholder farmers and agri-MSMEs in Tanzania and the DRC.The foundation also reported that more than 48.7 million trees had been planted through its environmental programmes.Equity Group Holdings has received accreditation as a Direct Access Entity to the Green Climate Fund, a move that will allow the group to directly mobilise global climate finance for projects focused on climate resilience and sustainable development.Healthcare and technology initiatives expandEquity Afya has expanded its network to 156 medical centres, which have recorded more than 5.3 million patient visits.The healthcare business has also opened its first community pharmacy as part of plans to develop a wider network of pharmacies across the region.The foundation’s Innovation and Technology pillar is targeting the training of 600,000 young people in artificial intelligence, machine learning and data analytics through partnerships with iamtheCODE, Huawei ICT Academy and WorldQuant University.Equity said 12,882 staff members had completed its generative AI course, while 5,743 had completed additional Huawei certification courses.Eye on 2030Equity said its first-half performance exceeded management guidance on nearly all key parameters and left the group well positioned for the next phase of its growth strategy.Under its Africa Recovery and Resilience Plan 2030, the group aims to expand operations into 15 countries, serve 100 million customers and deploy next-generation digital and AI-enabled systems to scale transformation finance across Africa.The group said it remains well capitalized and positioned to pursue those ambitions, as it continues shifting from traditional banking toward an integrated financial services model spanning banking, payments, insurance, healthcare, technology and social impact. 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