Equity Group Holdings’ first quarter 2026 results have emphasized the rising weight of its regional subsidiaries in the lender’s growth story, with Equity Bank Uganda continuing to expand its balance sheet, deposits and lending base despite a cautious operating environment.
The Group posted a 24% increase in profit after tax to KSh19.1 billion (UGX649billion) , but the more striking shift is the growing contribution of businesses outside Kenya, which now account for a larger share of assets, earnings and strategic momentum.
In Uganda, the bank recorded steady growth in key indicators, with total assets rising 16% to KSh131.1 billion (UGX4.457trillion) in the period under review. Customer deposits increased to KSh96.2 billion (UGX3.27trillion), while loans grew to KSh49.6 billion, reflecting continued efforts to deepen market presence and support lending demand.
Although profit before tax moderated to KSh1.1 billion (UGX 37.4billion), the bank remained focused on long-term expansion, channeling resources into digital banking, customer acquisition and operational scaling.
The results come at a time when Uganda’s banking sector is navigating tighter credit conditions, high operating costs and cautious private sector borrowing. Analysts say Equity Bank Uganda’s performance points to a lender positioning itself for a stronger second phase of growth, supported by expected activity in oil-related investments, trade finance and small and medium enterprise lending.
Shareholders’ funds also improved to KSh20.2 billion (UGX686.8billion) strengthening the bank’s capacity to support larger transactions and cushion itself against economic shocks.
Across the Group, regional subsidiaries are now contributing 52% of banking assets and half of banking profitability, marking a clear shift from the earlier dominance of the Kenyan market.
Tanzania delivered the fastest growth in the period, with profit after tax rising 150%, while Rwanda and the Democratic Republic of Congo posted growth of 36% and 32% respectively. The performance highlights the growing success of Equity’s regional diversification strategy, which has increasingly reduced reliance on its home market.
For Uganda, the shift carries broader significance. As a strategic hub along the East and Central African trade corridor, the country stands to benefit from deeper cross-border banking integration, especially as the African Continental Free Trade Area opens up more opportunities for trade finance, payments and investment flows.
Equity Group’s digital transformation is also reshaping the way the bank serves customers. According to the results, 98.3% of all transactions are now conducted outside branches, while 89.5% are processed digitally.
The change reflects both evolving customer behaviour and the pressure banks face to lower operating costs. By shifting transactions to digital platforms, agency banking and merchant networks, lenders are expanding access while reducing dependence on traditional branch infrastructure.
Equity’s network of more than 86,000 agents and 1.4 million merchants across Africa gives it one of the continent’s largest alternative banking footprints. The Group’s cost-to-income ratio improved to 50.6% from 54.2%, signalling stronger efficiency driven largely by technology adoption.
Uganda’s broader economic outlook is also helping to shape banking confidence. The economy is expected to benefit from rising private sector credit growth, easing inflation and the anticipated start of first oil production later in 2026.
Oil-related activity is expected to stimulate demand in construction, logistics, hospitality, manufacturing and services, creating new financing opportunities for banks positioned early along the value chain.
At the same time, risks remain. Exchange rate pressures, regional instability and global economic uncertainty continue to weigh on financial institutions, prompting lenders to maintain strong capital buffers and loan loss provisions.
Equity Bank Uganda’s IFRS coverage improving to 82% reflects a more guarded approach to risk management in an uncertain environment.
Beyond the balance sheet, Equity Group continues to project itself as a development-oriented institution with a strong social footprint. In Uganda, the Equity Leaders Program has become one of the bank’s flagship initiatives in youth mentorship, leadership training and education support.
The bank recently commissioned the fifth cohort of the programme while celebrating graduates from the inaugural intake, reinforcing its long-term investment in human capital development.
The latest results show a banking sector in transition, moving from branch-heavy models to digitally powered regional ecosystems. For Uganda, Equity Bank’s expansion signals confidence in the country’s medium-term prospects, even as the sector continues to balance growth ambitions with risk, regulation and competition.
As Uganda edges closer to oil production and deeper regional integration, banks with strong capital positions, digital capability and cross-border reach are likely to play a defining role in the next phase of economic transformation.
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