Equity Group

type

Public company

traded as

kn: EQTY USE: EBL

founded

1984

num locations

392 branch banks‡R1R‡

num locations year

2024

predecessor

Equity Building Society

location city

9th Floor, Equity Centre Hospital Road, Upper Hill Nairobi, Kenya

key people

Isaac Macharia (chairman)‡R2R‡‡R3R‡ James Mwangi (Group CEO) Samwel Kirubi (Group executive director)‡R4R‡

industry

Banking and finance

products

Loans, mortgages, investments, debit cards, credit cards, health, insurance

revenue

KSh 40.9 billion (Q3 2024)‡R5R‡

assets

KSh1.70 trillion (approx. US$13 billion) (Q1 2024)‡R6R‡

num employees

13,102 (2023)‡R7R‡

homepage

https://equitygroupholdings.com/

rating

Long term-rating scale: AA-(KE), short-term rating scale: A1(KE), rating outlook: stable - July 2021‡R8R‡

Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, Democratic Republic of the Congo and a representative office in Ethiopia.[9]

Overview

EGHL is the largest financial services conglomerate in East and Central Africa. As of December 2024, it had assets exceeding KSh1.80 trillion (US$13.9 billion). The group has over 21.6 million customers in seven African Great Lakes countries, with KSh1.40 trillion (US$10.8 billion) in deposits.

In March 2024, EGHL was named the 2nd Strongest Bank Brand in the world by Brand Finance. Equity climbed two places to 2nd position in the World's Top 10 Strongest Banking Brands in its third consecutive appearance in the Brand Finance Banking 500 rankings, achieving a Brand Strength Index (BSI) score of 92.5 out of 100 and an elite AAA+ brand strength rating.

In August 2024, and for the second consecutive year, Equity Bank was recognized as Africa's best bank for corporate responsibility at the 2024 Euromoney Awards for Excellence. The bank also won awards for Best Bank for Corporate Responsibility in Africa, Best Bank for Corporate Responsibility in Kenya, Best Bank for SMEs in Kenya, and Overall Best Bank in Kenya.

History

Foundation and early years

EGHL was founded in Kenya, the largest economy in the East African Community, as the Equity Building Society (EBS) in October 1984.[13] EBS was originally a provider of mortgage financing for customers in the low-income population. Due to its rural banking orientation, the promotion of agribusiness became a significant and strategic intervention by the bank. By September 2015, Equity Bank had more than 9.2 million customers.[14] The Banker listed Equity Bank among the Top 1,000 Banks in the World with the highest return on assets in the African continent, generating a rate of 6.84 percent on assets deployed.[15]

Corporate restructuring

Prior to November 2014, Equity Bank was both a licensed bank and a holding company for its subsidiaries. On 31 October 2014, Equity Bank Group announced its intention to incorporate a new wholly owned subsidiary, Equity Bank Kenya Limited, to which it would transfer its Kenyan banking business, assets and liabilities. The rationale for the re-organization was that by converting Equity Bank into a non-trading holding company that owns both banking and non-banking subsidiary companies and provides strategic, brand, risk and talent management to its subsidiaries, the Group would be better placed to invest in and develop existing and new businesses as part of its third phase of growth and transformation.[16] These resolutions were adopted during an extraordinary shareholders general meeting held on 24 November 2014, leading to the formation of Equity Bank Kenya Limited.[17]

Regional expansion

In September 2015, the group completed its acquisition of 79 percent of DR Congo-based ProCredit Bank Congo SARL from Procredit Group.[18] This acquisition marked the group's entry into sub-Saharan Africa's third most populous country.

In September 2019, Equity Bank Group began talks to acquire a controlling stake in Banque Commerciale du Congo (BCDC), the second-largest commercial bank in the Democratic Republic of the Congo.[19] In August 2020, Equity Group Holdings paid US$95 million (approximately KES 10.2 billion) for a 66.5 percent ownership in BCDC.[20]

On 30 December 2020, Equity Group Holdings received regulatory approval from the DRC government to merge Equity Bank Congo (EBC) and the Banque Commerciale du Congo (BCDC) into Equity BCDC.[21] In November 2023, Equity BCDC reported a profit before taxation of KSh11.4 billion ($74 million) for the nine months ending September, making it the most profitable subsidiary of the group. This successful acquisition enabled EGHL to surpass the KSh 1 trillion balance sheet mark, making it the first bank in East and Central Africa to achieve that milestone.

Rwanda expansion

On 14 June 2023, EGH publicly disclosed its entry into a binding term sheet for the acquisition of 91.93% of COGEBANQUE's issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni.[23]

On 3 January 2024, Equity Group Holdings PLC announced the merger of Cogebanque and Equity Bank Rwanda. The amalgamation, which followed the receipt of all corporate and regulatory approvals, marked a significant milestone in the ongoing strategic growth initiatives of EGH.[24]

Rebranding and milestones

In October 2019, the Group rebranded to Equity, eliminating the entity names the various subsidiaries previously carried such as Group, Bank, Insurance, or Investment Bank, thereby unifying the various brands according to the group MD and CEO, James Mwangi. This rebranding occurred as the Group commemorated its 35th anniversary.[25]

In August 2021, EGHL became the second most capitalized corporate entity at the Nairobi Securities Exchange after reaching the KSh 200 billion market capitalization mark.[26]

Overview

Equity Life Assurance

Equity Afya

History

Foundation and early years

Corporate restructuring

Regional expansion

Rwanda expansion

Rebranding and milestones

Ownership

Board of directors

Member companies

See also

External links

References