This archive report was first published on 3 August 2019.
On August 3, 2019, Equity Group Holdings released their half-year financial results, showcasing a significant 18% growth in total assets.
The growth in interest-earning assets was a notable 15% to KSh500.5 billion, attributed to a 17% increase in the net loan book and a 13% growth in government securities.
According to Dr. James Mwangi, Equity Group Director and CEO, the assets growth was largely due to successful mobilization of deposits.
As a result, total liabilities grew by 10%, driven by a 12% growth in treasury income. Interest income increased by 9%, while profit before tax rose to KSh17 billion from KSh15.5 billion, a 10% increase.
Profit after tax also increased by 9%.
Regional subsidiaries contributed 18% to the Equity Group, while their total group asset contribution rose to 27% and their total group deposits contribution increased to 26%.
The convenience of virtualization and digitization led to a significant increase in the number of loans disbursed, reaching 2 million. Of these, 1.9 million were disbursed through Equitel Mobile money, while 7% were disbursed through the branch.
Notably, up to 97% of all transactions were conducted through agency banking and digital platforms.
Equity Bank is well-positioned to participate in the government of Kenya's big four agenda, having differentiated itself and re-positioned its balance sheet over the past 18 months.
During this period, the bank increased its liquidity by 61% through a 79% growth in investments in government securities.
Disrupting business models, re-imagining distribution channels, digitization, and re-positioning the balance sheet have uniquely differentiated Equity Group, leading to an 11% growth in customer base from 12.5 million accounts to 13.9 million accounts.
The group recorded a Non-Performing loans ratio of 8.6%, lower than Kenya's Non-Performing loans ratio of 12.7%.
