Equity Group Holdings recently released their half year financial results. The group registered an 18% growth in total assets. Interest earning assets grew by 15% to KSh500.5 billion, this was enhanced by the 17% growth in net loan book and a 13% growth in government securities.
According to Dr James Mwangi, Equity Group Director and CEO, the assets growth was attributed to successful mobilization of deposits. Total Liabilities grew by 10% and this growth was driven by growth of treasury income of 12%. The interest income grew by 9% while profit before tax went up by 10% to reach Ksh17 billion from Ksh15.5 billion. Profit after tax increased by 9%.
Regional subsidiaries contribution to the Equity Group remained at 18%, the total group asset contribution went up to 27% and their total group deposits contribution increased to 26%.
The convenience of virtualization and digitization saw the number of loans disbursed increase to 2 million. 1.9 million of the loans were disbursed through Equitel Mobile money and 7% of the loans disbursed through the branch. Up to 97 percent of all transactions were done through agency banking and digital platforms.
Equity Bank is said to be well positioned to participate in the government of Kenya’s big four agenda. During the past 18 months, the bank has differentiated itself and re-positioned its balance sheet by increasing its liquidity by 61% through a 79% growth in investments in government securities.
Disrupting business models, re-imagining the distribution channels, digitization, re-positioning the balance sheet and massive social impact investments in the Equity brand has strategically and uniquely differentiated Equity Group. This has led to Equity Group having an 11% growth in customer base from 12.5 million accounts to 13.9 million accounts.
The group recorded on Non Performing loans of 8.6% against Kenya’s Non Performing loans ratio of 12.7%.
