This archive report was first published on 16 September 2021.
Equity Group's regional businesses have widened the profit gap against top rival KCB Group, underlining the impact of acquiring a second bank in DRC Congo last year.
Friday, September 17, 2021
Equity Group's subsidiaries in South Sudan, Tanzania, Rwanda, Uganda, and DRC Congo saw a 145% increase in pretax profit to Sh4.9 billion in the half year ended June, compared to Sh2 billion in the same period last year.
The lender's growth in profits, helped by last year's Sh10.35 billion acquisition of Banque Commerciale Du Congo (BCDC), has helped it widen the gap with KCB.
According to the half-year results, KCB Group's pretax profit from its five subsidiaries in South Sudan, Tanzania, Rwanda, Burundi, and Uganda was Sh2.013 billion in six months ended June, up 54% from Sh1.31 billion in the previous similar half-year.
Equity Group made Sh2.89 billion more from regional businesses compared to KCB, a significant contrast to the Sh0.69 billion lead that Equity was commanding at half year 2020.
Equity Group beat KCB last year to become the most profitable lender and has maintained this in the half year ended June 2021.
Equity Group CEO James Mwangi said, 'If there's one country that this group most likely will be defined by, it is the DRC. Those who call DRC the jewel on the crown, I agree with them.'
Equity Group entered DRC Congo in September 2015 through the acquisition of 79% stake in ProCredit Bank, and last year followed up with acquiring 66.53% stake in BCDC.
However, KCB last month completed the acquisition of Rwandese lender Banque Populaire du Rwanda (BPR) and is in the final stages of acquiring Banking Corporation Tanzania (BancABC) in deals that look set to cut Equity's dominance.
Equity Group booked Sh17.9 billion net profit in six months to June, nearly double from Sh9 billion posted in the previous similar period.
