Equity Group reaffirms strength and resilience following GCR rating

Global Credit Rating (GCR) has released its updated public rating of Equity Group Holdings Plc, revising the Group’s long-term issuer rating to A (KE) from AA- (KE), with a Stable Outlook.

The rating reflects GCR’s view of the macroeconomic and operating environment across Sub-Saharan Africa, where the Group maintains a strong regional presence.

The assessment acknowledges Equity Group’s robust financial profile, strong franchise, and leading position in the East and Central African banking sector.

GCR cites elevated credit risks in the region, including foreign currency volatility, inflationary pressures, and constrained liquidity conditions, as key factors influencing the revised rating.

Equity Group remains fundamentally strong and continues to demonstrate resilience across varying economic environments.

The Group closed FY2024 with a Profit After Tax of Ksh.48.8 billion and an 11% growth in Earnings Per Share to Ksh.12.3.

Regional subsidiaries now contribute 49% of the Group’s total assets and 54% of Profit Before Tax, underscoring the effectiveness of its diversification strategy.

The Group’s Non-Performing Loan (NPL) ratio remains below the industry average, reflecting prudent risk management practices and a proactive credit management framework.

Equity continues to maintain solid capital and liquidity buffers, providing flexibility to respond to shifting economic conditions while supporting its customers and communities.

The rating also highlights cases of fraud that occurred last year in Kenya and Uganda and the previous year in DRC, all of which were detected by the internal controls and the risk teams.

The cases are being actively pursued in the respective markets through security and legal processes. No other incident has occurred since last year.

However, these cases are continuing to feature prominently in the news because they are ongoing court cases such as the one in Kenya.

The Bank has continued to invest in technology, comprehensive systems & processes, talent and skills to strengthen its risk management capabilities.

In reaffirming its commitment to operational excellence and system integrity, Equity Bank recently achieved dual ISO certifications: ISO 27001:2023 for Information Security Management, and ISO 20000-1:2018 for IT Service Management.

These certifications validate the strength of Equity’s internal control systems and risk governance, particularly in cybersecurity and service delivery; areas highlighted in GCR’s sustainability assessment.

Commenting on the GCR rating, Equity Group Managing Director and CEO, Dr. James Mwangi, said: "We remain confident in the Group’s strategic direction and operational resilience. Our investments in technology, talent, and risk management continue to position us strongly to deliver sustainable value for all stakeholders.

We take note of GCR’s highlights, particularly around operational risks, and continue to strengthen our systems to meet the highest standards of integrity and accountability. Recognizing the rising complexity of fraud risk across the financial sector, we have expanded our investments in cybersecurity, fortified our internal controls, and enhanced staff capabilities to ensure resilience at every level.”

He added: “Our recent dual ISO certifications in Information Security and IT Service Management reaffirm our commitment to robust governance, enhanced risk management, and operational excellence. We are confident that these ongoing improvements will reinforce stakeholder trust and support our long-term vision of sustainable growth across Africa."

Equity Group continues to serve as a catalyst for economic transformation, leveraging innovation and financial inclusion to enhance livelihoods and build prosperity across Africa.

The Group has banking subsidiaries in Kenya, DRC, Rwanda, Uganda, Tanzania, South Sudan, and a Commercial Representative Office in Ethiopia.

It has other subsidiaries in investment banking, insurance, telecom, fintech and social impact investments. Equity Group is the largest integrated financial services firm in the region with a market capitalization of USD 1.27 Billion.

The Group has an asset base of USD 13.96 Billion, customer base of 21.6 million supported by a footprint of 399 branches, 85,080 Agents, over 1.1 million Pay with Equity (PWE) merchants, 40,045 Point-of-Sale (POS) Merchants, 899 ATMs and an extensive adoption of digital banking channel.