This archive report was first published on 12 November 2019.
Equity Group has reported a 10.3% net profit growth, making Ksh17.5 billion in the first nine months of this year.
According to the bank's CEO, James Mwangi, the lender's South Sudan and Ugandan businesses have been experiencing slow growth, which is affecting the expansion of its regional subsidiaries.
However, the bank's diaspora remittances have seen a significant growth of 28% to reach Ksh102 billion.
Equity Group is also optimistic about the lifting of interest rates cap, which it believes will boost its loan book.
The bank's internet and mobile banking services are growing faster than its conventional brick-and-mortar model, but it has no plans to close its physical branches.
Its merchant banking business has grown by 27% to reach Ksh88.4 billion, making it one of the bank's fastest-growing segments.
Despite this growth, the bank is still struggling with a high rate of non-performing loans, which stands at 8.3% of its loan book, almost 5% above the market average.
