-
Proposed dividend per share of UGX 121.13, a payout ratio of 34.5%
-
Earnings per share increased by 11% to UGX 350.55
-
Asset quality improves by 100 basis points from Q1 2024 to Q4 2024
-
Profits after tax grew by 12% to UGX 1.39 trillion
-
Regional operations contribute 49% of total assets and 54% of profit before tax
NAIROBI, 27th March 2025 – Equity Group Holdings Plc has reported strong financial performance for 2024, bolstered by its focus on diversification, innovation, and regional expansion. With robust liquidity, solid capital reserves, and thriving regional subsidiaries, the Group is well-positioned to sustain its leadership in the region and drive long-term growth.
Announcing the full-year 2024 results, Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings Plc, said, “We are proud of our resilience in a challenging global economic environment. Our financial strength allows us to capitalize on opportunities as the regional economy offers diverse growth prospects. With strong liquidity and capital, we are equipped to support our customers moving forward.”
In FY 2024, Equity Group recorded a Profit After Tax (PAT) of UGX 1.39 trillion, up 12%, reflecting the success of its diversified business model and prudent financial management. Profit Before Tax (PBT) rose 17% to UGX 1.73 trillion, while Earnings Per Share (EPS) climbed 11% to UGX 350.55, underscoring the Group’s solid performance.
Total deposits reached UGX 39.9 trillion, with the customer base expanding to 21.6 million, highlighting the strength of its deposit franchise. Liquidity remained robust, with cash and cash equivalents up 19% to UGX 9.83 trillion and investment securities growing to UGX 14.59 trillion, yielding a liquidity ratio of 57%. This supports the Group’s Africa Recovery and Resilience Plan (ARRP), a private sector-led initiative to catalyze development across Africa by empowering enterprises and households with financial and technological tools.
The ARRP aims to foster long-term transformation continent-wide, supported by partnerships with Development Finance Institutions (DFIs), global implementation partners, and social institutions. Key collaborations include digitizing 10 million farming customers with AfDB, Microsoft, and Mastercard under the MADE Alliance, and working with the World Food Programme to boost smallholder farmers’ agribusiness capacity.
The Group proposed a dividend of UGX 121.13 per share, reflecting a 34.5% payout ratio, supported by a return on equity (ROE) of 21.5% and return on assets (ROA) of 2.8%, both exceeding industry benchmarks.
Equity Group’s tri-engine strategy—blending commercial, social, and sustainability goals—continues to drive economic growth and societal impact. Regional subsidiaries contributed 49% of total assets, 48% of loans, and 54% of PBT, with notable growth in Rwanda (36% revenue increase), Tanzania (20%), and DRC (9%). Profit After Tax surged in Uganda by 186%, Tanzania by 107%, Rwanda by 30%, and DRC by 29%. In Kenya, the subsidiary cut its base lending rate three times in six months, signaling intent to expand its loan book as the economy recovers.
Amid global geopolitical challenges, the Group maintained a cautious approach to risk, with loan loss provisions at UGX 575.7 billion. The Non-Performing Loan (NPL) ratio stood at 12.2%, below the industry average of 16.4%, with NPL coverage at 71%.
The Life Assurance business saw Profit Before Tax rise 58% to UGX 42.75 billion, with a gross declared return of 13.5% on policyholder funds. The Group’s new general insurance license complements its life assurance offerings, enhancing its ability to provide comprehensive solutions.
Dr. Mwangi added, “Our Bancassurance unit is key to our growth. Despite market challenges, premium collections rose 6%, and insurance premium financing uptake jumped 50%. Investments in talent, digital transformation, and processes will drive a more integrated, customer-focused experience.”
Digital channels now handle 86% of transactions, with Equity Mobile processing UGX 90.46 trillion (up 67%) and ONE Equity enhancing cross-selling. Brand Finance ranked Equity the world’s second-strongest banking brand in 2024, valued at USD 450 million (UGX 12.83 trillion).
The Equity Leaders Program (ELP) supported 29,515 scholars, including 750 new pre-university interns, while sustainability efforts included planting 35 million trees and disbursing USD 200 million (UGX 5.7 trillion) in climate finance. Social programs reached 5.79 million people, with UGX 4.68 trillion in cash transfers and 3.34 million patient visits at Equity Afya Clinics.
Dr. Mwangi concluded, “Our commitment to financial inclusion, regional growth, and sustainability positions us as a catalyst for economic empowerment across Africa. We are optimistic about creating lasting value for our customers and shareholders.”
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
