Equity Group, a leading banking conglomerate, has announced its financial results for the first quarter of 2023, posting an 8% increase in Profit After Tax to Ksh. 12.8 billion compared to Kshs. 11.9 billion in the previous period. Similarly, Profit Before Tax grew by 10% to Kshs. 16.9 billion, up from Kshs. 15.3 billion.
The key driver of profitability was the substantial growth in non-funded income, which reached Kshs. 18 billion, marking a remarkable 57% increase from Kshs. 11.5 billion. This non-funded income contributed 45% to the total income, indicating the improving quality of the Group’s earnings.
Several specific areas within the business saw significant growth. Gross trade finance income experienced a remarkable surge of 100%, reaching Kshs. 2.4 billion from Kshs. 1.2 billion. Trade finance guarantees and off-balance sheet volume also exhibited substantial growth, expanding by 39% to Kshs. 167 billion compared to Kshs. 120 billion. Additionally, forex income registered a remarkable growth rate of 160%, soaring to Kshs. 5.2 billion from Kshs. 2 billion.
Although non-funded income witnessed a remarkable 57% growth, the total income for the period increased by 28% to Kshs. 39.7 billion from Kshs. 30.9 billion. This growth was partly due to the slower expansion of interest income, which rose by 21% to Kshs. 32.4 billion from Kshs. 26.7 billion.
Equity Group’s overall performance was bolstered by a remarkable 21% growth, with total assets reaching an impressive Kshs. 1.538 trillion. This growth was supported by a 23% increase in customer deposits, which rose to Kshs. 1.111 Trillion while its loan book expanded to Kshs. 756.3 billion from Kshs. 623.6 billion.
The Group’s strategic expansion and product diversification initiatives have paid off, with business now evenly split between the core Kenyan operations and the regional banking subsidiaries and non-banking business.
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