Equity Group: Half-Year Profit Rises 32% to KSh 45.5B as Bad Loans EaseEquity Group: Half-YearProfit Rises 32% to KSh45.5B as Bad Loans Ease

The result matters beyond the bank's shareholders. A lender with 23.3 million customers is growing its deposits and loans faster than most of the market while cleaning up its loan book, which is the combination that tends to support credit to households and businesses.

According to Equity Group's half-year 2026 results, published on 19 August 2026, profit before tax rose 39% to KSh 57.8B ($448.06M) from KSh 41.5B ($321.71M). Profit after tax moved from KSh 34.6B ($268.22M) in the same period of 2025.

Dollar figures here are converted at about KSh 129 to the dollar, the rate implied by the group's own foundation disclosures.

Balance sheet grows by a fifth

Total assets reached KSh 2.16T ($16.74B), up 20% from KSh 1.80T ($13.95B). Customer deposits rose 21% to KSh 1.59T ($12.33B), while net loans grew 19% to KSh 981B ($7.60B) from KSh 825B ($6.40B).

Shareholders' funds climbed 27% to KSh 350B ($2.71B). Non-funded income, which comes from fees, commissions and other earnings outside lending, grew 36% to KSh 55.6B ($431.01M) and made up 44.5% of total income.

Dr James Mwangi, the group's managing director and chief executive, described the half-year outcome as the result of "a multiyear transformation agenda". Mwenendo earlier reported on how Mwangi's Equity shareholding was repriced by the stock's September rally.

Fewer bad loans, lower costs

Asset quality improved sharply. The ratio of non-performing loans fell to 9.5% from 13.7%, and coverage of those loans by provisions rose to 70% from 68%. The cost-to-income ratio dropped to 48.6% from 51.7%, meaning the bank spent less to earn each shilling of income.

The group reported a return on assets of 4.5% and a return on equity of 26.5%. The release does not mention a dividend, so shareholders should wait for the board's formal announcement.

Regional units carry a large share

Subsidiaries outside Kenya contributed 42% of banking profitability and 47% of revenue, and held 51% of deposits and 54% of loans. In the Democratic Republic of Congo, Equity BCDC grew profit after tax 30% to KSh 11.8B ($91.47M). Equity Bank Tanzania's profit after tax rose 82% to KSh 2.0B ($15.50M), and Equity Rwanda's rose 12% to KSh 2.9B ($22.48M).

Equity Bank Kenya delivered profit after tax of KSh 25.7B ($199.22M), up 32% from KSh 19.5B ($151.16M). The insurance arm lifted gross written premiums 24% to KSh 6.4B ($49.61M).

What it means for the market

The results arrive as Kenyan equities have been choppy. In an earlier report by Mwenendo, the NSE All Share Index closed 1.10% lower on 13 October 2026. Strong earnings from a heavyweight lender can anchor sentiment, though share prices depend on more than one set of results.

For borrowers, the improving loan book and rising deposits give the bank room to keep lending. As Mwenendo earlier reported, Kenya's first-quarter growth of 5.3% left household budgets under pressure, so the pace of credit will be closely watched.