Equity Group has weathered a turbulent macroeconomic environment to register a 21% growth with total assets reaching Kshs.1,537.7 billion. Funding the asset growth is a 23% growth in customer deposits with the proceeds deployed to grow loan the book by 21%. Customer deposits grew to Kshs.1,111.2 billion up from Kshs.900.9 billion while the loan book grew to Kshs.756.3 billion up from Kshs.623.6 billion.
Speaking while releasing the Q1 2023 results, Dr. James Mwangi, Equity Group Managing Director and CEO said, “The strong growth speaks to the Group’s embedded social and trust capital that has seen the Group’s brand rated the 4th strongest financial brand on Earth. We are working to anchor the strength of the brand on customer experience, its capabilities and superior product offering.”
The Group’s regional expansion and product diversification strategy has delivered an almost 50:50 split of business between the anchor Kenya business and the regional banking subsidiaries and non-banking business.
Area of Performance Kenya Regional/Non-Banking DRC
Business Subsidiaries
Total Assets 55% 45% 29.9%
Total Deposits 53% 47% 33.3%
Loans 59% 41% 25.6%
Gross Revenue 50% 50% 30.7%
Profit After Tax 53% 47% 26.6%
“We have become a truly regional and diversified business,” added Dr. Mwangi.
The Group’s business has recorded recovery and growth momentum after the tough COVID-19 operating environment. The value of transactions in branches has grown by 40% to 990.5 billion up from 708.3 billion transactions. The value of transactions on Agency channels has grown by 44% to 681.6 billion transactions, up from 472.3 billion transactions.
“The COVID environment acted as a tailwind for digital transactions adoption by our customers and we have emerged out of the 3-year pandemic period as a strong digital business,” said Dr. Mwangi.
The fintech/digital capabilities of the Group continued to be strengthened by the successful rollout of the interoperable universal digital payments platform, Pay with Equity (PwE), whose transactions volume grew by 243% to 48.3 million transactions up from 14.1 million transactions. Mobile and internet banking transactions grew by 270% to 1,336.3 million transactions up from 361.6 million transactions. Transaction income grew by 73% to Kshs.4,119.6 million up from Kshs.2,388 million.
The business has evolved to online and digital;
- 98% of all transactions happen outside of the branch.
- 96% of all transactions are happening on 3rd party and self-service platforms delivering 70% of value of transactions.
- 87% of all loans are being processed on mobile channels.
- 82% of all transactions are cashless.
- Digital transactions grew by 23.3% to Kshs. 2,288.8 billion from Kshs. 1,856.6 billion while digital payments grew by 171% to Kshs 54.2 billion from Kshs 20 billion.
The Group registered a Profit After Tax growth of 8% of Kshs.12.8 billion, up from Kshs.11.9 billion. Profit Before Tax grew by 10% to Kshs.16.9 billion up from Kshs.15.3 billion. Profitability was driven by non-funded income of Kshs.18 billion up 57% from Kshs.11.5b billion, which contributed 45% of total income reflecting the improving quality of Group earnings.
Gross trade finance income grew by 100% to Kshs.2.4 billion up from Kshs.1.2 billion while Trade finance guarantees, and off-balance sheet volume grew by 39% to Kshs.167 billion up from Kshs.120 billion. Forex income registered a growth of 160% to Kshs.5.2 billion up from Kshs.2 billion.
Despite the 57% growth in non-funded income, total income grew by 28% to Kshs.39.7 billion up from Kshs.30.9 billion as a result of slow growth in interest income of 21% to Kshs.32.4 billion up from Kshs.26.7 billion, while the corresponding interest expenses grew by more than double the rate of interest income growth at 47% to Kshs.10.7 billion up from Kshs.7.3 billion. Yields on interest earning assets increased to 10.3% up from 9.5% but net interest margin stagnated at 6.8% as a result of increase in cost of funds which grew to 3.5% up from 2.7%. The increase reflects the challenging macroeconomic operating environment characterized by stubborn high inflation and high interest rates.
Further to the slow growth in net interest income of 12% due to the slower growth in interest income of 21% compared to the 47% growth in interest expense, business was not spared by growth in total costs which grew by 46% to Kshs.22.8 billion up from Kshs. 15.6 billion. The costs were primarily driven by 127% growth in loan loss provision of Kshs.3.1 billion up from Kshs.1.4 billion, staff cost growth of 33% to Kshs.6.6 billion up from Kshs. 5.0 billion and other operating expenses growth of 42% to Kshs.13.1 billion up from Kshs. 9.2 billion.
The growth in other operating costs was driven by massive business transformation expenses to accommodate innovation and technology investments for digital transformation and business readiness for the next level of growth, as well as the effect of rising inflation and currency depreciation. Growth in staff costs reflected the strengthening of the management bench in keeping with growth in size, complexity, and sophistication of the transformed business. The 33% staff cost increase and 42% growth in other operating expenses combined to raise the cost income ratio to 49.1% up from 45.3%. Despite the current cost growth and continued investment in business transformation, there is an opportunity to focus on cost optimization, efficiency pursuit and productivity gains to strengthen value, digitization and the business transformation will lead to efficiency in the Group.
The increase in loan loss provision of 127% to Kshs. 3.1 billion up from Kshs.1.4 billion raised the cost of risk to 1.9% up from 1.2% and was caused by a slight deterioration in NPLs to 9.1% up from 8.65%. The background of a turbulent macroeconomic environment characterized by sticky inflation, high interest and the depreciation of the Kenya shilling against the US dollar justified the need for caution and prudence in provision.
Despite the challenging operating environment, the offensive strategy has produced 21% growth in total assets and 23% growth in customer deposits, anchored on enhanced brand image through greater social impact investments. These focused on financial inclusion and entrepreneurship training, investments in host communities where refugees reside, capacity building in agriculture and access to affordable healthcare while supporting social safety nets for marginalized populations such as refugees, orphans, the elderly and physically challenged; and spearheading environmental and social sustainability initiatives for communities and society.
Equity Group Foundation, our social arm and engine has 40,000 scholars in high school between Form 1 and 4 on full and comprehensive scholarship that covers school fees, uniforms, pocket money, transport, shopping, and medical expenses. 3.87 million farmers have been supported to transit from peasant farming to agri-businesses. 4.89 million households have been supported to receive regular social payments and stipends to ease the challenges of life while 81 Equity Afia medical centres have been opened to address the health needs of host communities by offering high quality affordable medical services and have
attended to over 1.48 million patients cumulatively. 21.8 million trees have been planted as Equity’s contribution to ease adverse environmental change while 386,120 households have been afforded clean and renewable energy devices and equipment for domestic use as well as funding of schools to transit from wood fuel driven kitchens to cleaner energy solutions such as LPG fuels. 432,242 youth and women have been trained and funded under the Young Africa Works program to start businesses creating employment for 1.3 million young people.
The defensive strategy has positioned the Group resiliently to benefit from the recovery from the COVID- 19 environment, the digital transformation and weathering the challenges of the turbulent macroeconomic environment. The Group enjoys a defensive and agile balance sheet characterized by high liquidity with cash holdings growing by 55% to Kshs.258.4 billion up from Kshs.166.4 billion to constitute 17% of the total Group balance sheet assets. Government securities and cash add up to Kshs.650.9 billion to constitute 43% of the entire Group balance sheet.
The Group has recorded a 9.1% NPL ratio, which compares relatively well with the industry NPL average ratio of 14%. The NPL coverage of 88%, loan to deposit ratio of 68.1% and liquidity ratio of 51.5% positions the Group defensively. In spite of the strong defensive position, the Group continues to generate competitive returns to shareholders with return on average equity (ROAE) standing at 27.5%, up from 27.4% and return on average assets (ROAA) strong at 3.5%. Capital buffers remain high as core capital to total risk weighted assets stood at 15.5% against the regulatory minimum of 10.5% and total capital to total risk weighted assets standing at 19.8% against the regulatory minimum requirement of 14.5%.
The strong financial indicators not only strategically position the Group, but grants it competitive tools and capabilities for execution and a competitive market leadership position armed with an agile and solid balance sheet and an effective economic and social engine:
- 17% of Total Assets being cash
- 43% of Total Assets being cash and government securities
- 88% NPL Coverage in terms of provisions
- 68.1% loan to deposit ratio
- 51.5% Liquidity
- 19.8% Strong total capital to total risk weighted asset ratio.
Equity’s strong cash and liquidity position, strong momentum of growth and performance, strong asset buffers in provisions and capital buffers position the institution well to unleash its offensive growth strategy either opportunistically through mergers and acquisitions or via organic growth riding on its strong brand and digital capabilities, strong entrepreneurial and managerial depth and the Group reputation of a steadfast governance structure, practices, and execution capabilities.
![Canon (www.Canon-CNA.com) today announces the Colorado XL-series, a new platform of 3.4m printers that extends the proven advantages of Canon's UVgel technology to the 3.2m graphics market. Available in hybrid and roll-to-roll configurations, the modular, field upgradable platform powered by UVgel technology delivers great versatility and exceptional productivity for both flexible and rigid media applications from signage and décor to point of sale and packaging. The Colorado XL-series comprises two easy-to-operate models: the Colorado XL7 roll-to-roll printer and Colorado XL7 hybrid printer. The new series brings the benefits of UVgel to a new market segment with exceptional application versatility across a comprehensive range of media – from banner, paper, vinyl and films to soft signage, heat-sensitive materials, foam board, fluted polypropylene, acrylic, aluminium composite boards and cardboard – providing the flexibility to tackle diverse customer requirements. With print speeds of 70m² per hour in quality mode, 106m² per hour in production mode and up to 211m² per hour in express mode, the system delivers the productivity needed for demanding production environments while accommodating substrates up to 52mm/2 inches thick for rigid applications. The new platform includes multiple technology innovations, such as the UVgel 860 ink set, which has been optimised to cover a wide variety of both rigid and flexible applications. It also provides the proven benefits of UVgel: odourless and instant-dry prints, high mechanical and chemical robustness, dimensional stability due to low-temperature curing, excellent colour consistency, TPO [1] - and VCL [2] -free, and matte and gloss finish without the need of a separate varnish. The Colorado XL-series also incorporates new UVgel 850 PrintHeads. Each printhead has 4,544 nozzles and features automated built-in nozzle performance monitoring and compensation. A single printhead supports two colours simultaneously, so that only two printheads are required to print CMYK, plus an optional third if white is configured. Additionally, the Colorado XL-series has an agile and precise printhead carriage that features UVgel DynamicMotion Control to ensure exceptional print quality even with challenging media. Taking the UV LED curing process to the next level, the Colorado XL-series introduces UVgel FullBeam Curing. This technology uses a unique 3.4-metre-wide LED curing array that, combined with an ingenious mirror system, delivers consistent UV light dosing across the entire print width, guaranteeing exceptional print uniformity over large surfaces and enabling a wider colour gamut. Media handling is optimised by the new UVgel TRIdrive vacuum belt system, which features three interactive rollers and multiple powerful vacuum zones that reduce wrinkling and skewing by automatically detecting and correcting the media positioning. This results in highly repeatable media transport through the printer, ensuring accurate positioning both longitudinally and laterally and enabling razor-sharp applications. Optional features for the Colorado XL-series, which are already available on the highly successful and modular Colorado M-series, include: UVgel White for hassle-free white printing, FLXfinish+ for creative effects using matte or gloss or mixed matte and gloss on the same print without additional varnish, and FLXture for textured finishes that mimic materials like leather, wood or fabric. Mathew Faulkner, Director, Marketing & Innovation, Wide Format Printing Group, Canon EMEA, comments: "For the past decade, Canon has been at the forefront of the inkjet evolution in large format, with market-leading technologies including the Colorado roll-to-roll printer series powered by UVgel technology and the Arizona flatbed printers. Large format print providers are looking for systems that deliver high productivity, versatile applications and reliable quality while addressing the challenge of finding skilled operators – which is why Canon is launching our new, breakthrough Colorado XL-series, an addition to our portfolio that will set a new standard in productivity and versatility. “This innovative solution brings the proven advantages of our unique UVgel technology to the 3.2m market for the first time, combining it with extensive automation and a modular design that will enable customers to extend their application possibilities into markets such as packaging and décor. Print service providers already producing high-value signage and graphics can now leverage UVgel's distinctive finishes, including mixed gloss and matte effects and textured printing, at scale to stand out in these new markets. And with its hybrid capabilities, users can print both roll-to-roll and rigid applications on the same device, using the same ink, the same colour profiles and the same unique features and finishes. For brands, for example, this translates to seamless campaigns that span the full spectrum of applications, ensuring perfect consistency across campaign assets whether they're roll-fed graphics, rigid signage, packaging, or décor elements. This is particularly valuable when these different applications appear side by side in-store, where maintaining that consistent quality and finish elevates the entire brand experience that today's brands demand." The Colorado XL-series will be available from the beginning of 2026 via Canon’s direct sales organisations as well as from accredited partners. For more information about the Colorado XL-series, please visit: https://apo-opa.co/3WltKtM](https://businessinsights.africa/wp-content/uploads/2025/10/canon_prograf-218x150.png "Canon expands large format graphics production portfolio with new 3.4m Colorado XL-series")
