Equity Bank Group CEO Dr. James Mwangi has addressed the recent reports of massive layoffs that saw nearly 200 staff members exit the lender, clarifying the move was prompted by a conduct audit triggered by the loss of Ksh.1.5 billion.
Speaking during the release of the bank’s Q1 financial results on Citizen TV, Dr. Mwangi urged customers not to compromise staff integrity, warning that such actions risk employees’ jobs.
“We have zero tolerance on anybody who is conflicted,” he said, adding that a toll-free number will soon be introduced to enable customers to report poor service or misconduct.
Despite the layoffs, the bank posted a Ksh.15.4 billion profit after tax in Q1 2025, a 4% drop attributed to economic instability in South Sudan.
The lender blamed currency depreciation and halted oil exports in South Sudan, which last year contributed Ksh.3 billion through inflation-adjusted reporting.
Equity’s customer deposits grew 7% to Ksh.1.32 trillion, with credit disbursement up by 3% to Ksh.804.7 billion. The Kenyan business segment outperformed regional units, contributing over 50% to deposit growth, loan book expansion, and revenue.
However, non-performing loans (NPLs) remain a concern, standing at 19%, driven mainly by corporate and MSME loans. Dr. Mwangi noted that while recoveries are slow due to court cases, legal wins indicate positive progress.
