This archive report was first published on 2 August 2019.
Equity Group Holdings, led by Group Managing Director and Chief Executive Officer Dr. James Mwangi, has reached a preliminary agreement to exchange ordinary shares in the group for controlling equity stakes in four banks operating in Rwanda, Tanzania, Zambia, and Mozambique.
On August 2, 2019, Equity Group announced a 9% growth in profit after tax for the first six months of the year, with a net profit of Sh12 billion, up from Sh11 billion reported over a similar period in 2018.
According to Dr. Mwangi, the growth in profit has been realised on the back of increased lending and reduced operating costs, as the majority of the bank's operations now flow through digital channels.
"At the moment, 97% of transactions go through the bank's digital platforms, and we are working to increase the services we can offer through our agency network and mobile application," Dr. Mwangi said.
The lender has upgraded its digital network, including overhauling the entire ATM network and introducing smart ATM machines that will allow new functionalities such as Near Field Communication and biometric security features in the next three months.
Equity Bank consumers will also be able to get other services, including loans, bank assurance, and securities trading, through their agents by September this year.
"Customers are not withdrawing money but transacting it on their digital platforms, which is an increasingly popular trend, and we now want to focus on digitising high-value segments, including retail commerce and diaspora remittances," Dr. Mwangi said.
Interest income grew 9% from Sh25.4 billion in the first half of 2018 to Sh27.7 billion recorded in 2019, while the loan book expanded by 17% from Sh275 billion last year to Sh320 billion.
The bank recorded a marginal rise in non-performing loans from 8.4% in June last year to 8.6%, representing Sh27 billion.
