Banking Sector: Q1 2025 Performance Round-up
The banking sector was abuzz with results these past few weeks:
- KCB Group retained its spot as Kenya’s largest bank by assets and profitability.
- Equity Group dominated in non-interest income and regional contributions, with subsidiaries now making up 47% of total assets and 45% of profit before tax.
- NCBA remained the most diversified, while BK Group stood out for efficiency.
- StanChart led in asset quality, recording one of the lowest NPL ratios in the market.
- HF, DTB, and I&M each posted strong momentum in profitability growth.
Equity & KCB’s Regional Muscle
The two giants posted a combined Ksh 11.4 billion in PBT from regional subsidiaries in Q1 2025, further validating their cross-border strategies.
I&M Group
I&M’s Q1 2025 profit after tax rose by 18.1% to Ksh 3.9bn, with regional units contributing 26% of PBT. The bank expects to cross Ksh 100bn in shareholder equity by Q2 2025.
Equity’s Regional Diversification
Equity Group’s Q1 results underscored the strength of its regional diversification strategy:
- Regional subsidiaries now contribute 47% of total assets, 48% of loans, and 45% of profit before tax.
- While the Kenyan unit remains important, these numbers reflect growing earnings resilience across East Africa.
Equity’s Gulf Vision
Equity is seeking shareholder approval to open a representative office in the U.A.E., marking its intent to expand its footprint beyond Africa.filing and payments.
HF Group
HF posted a 118.1% jump in PAT to KES 330 million, driven by net interest income growth and business diversification.
Absa Bank Kenya
Q1 2025 PAT rose 3.7% to Ksh 6.2 billion, backed by a cost-to-income ratio of just 35%, one of the best in the sector.
DTB Group
DTB posted 8.8% growth in PAT to Ksh 2.9 billion, mainly due to increased net interest income and reduced loan loss provisions.
Inflation Dips
Kenya’s inflation rate dropped to 3.8% in May 2025, down from 4.1% in April, according to KNBS.
T-Bills Stay Hot
Treasury bills closed the month heavily oversubscribed, with the government accepting Ksh 43.7 billion against a Ksh 24.0 billion offer. The 91-day T-bill rate stood at 8.2927%.
Safaricom’s Big AI Bet
Safaricom announced plans to invest over $500 million in AI infrastructure across East Africa over the next three years to power connectivity and a scalable AI ecosystem.
Leadership Update at Safaricom Ethiopia
Safaricom CEO Peter Ndegwa has been appointed Chairman of both Safaricom Telecommunications Ethiopia PLC and the Global Partnership for Ethiopia, effective May 22, 2025.
3rd BD Investor Conference
This week saw the 3rd edition of the Business Daily Investor Conference, which brought together investors, experts, and stakeholders to explore growth opportunities amid ongoing economic volatility.
KPMG Venture Summit 2025
KPMG hosted the second Private Enterprise Venture Summit, featuring powerful discussions on Africa’s funding landscape. The summit connected investors, family businesses, startups, policymakers, and ecosystem players.
5th Abojani Economic Empowerment Conference – Save the Date!
We are geared up for the 5th Abojani Economic Empowerment Conference that is scheduled for the 22nd Nov 2025.
Theme: Ownership Economy & Self Sustenance For African Households & Businesses.
June Abojani Masterclass – Register NowTailored for first-time investors, this masterclass runs from 9th to 27th June 2025, 7–8pm EAT.
- Fee: Ksh 6,000
- Mpesa Paybill: 469345
- A/C Number: Your Name
Participants get added to a dedicated WhatsApp group and receive three e-books and an investment handbook.
