Equity Group has released its half year 2023 financial results reporting a 7.8% growth in after-tax profits to KES 26.3 billion. The profitability was driven by a jump in non-funded income and net interest income. Non-funded income rose 41.2% to KES 36.5 billion as foreign exchange trading income went up 68%. Net interest income was up 16.5% to KES 46.4 billion.
The bank’s loan book went up 25.6% as interest income from its portfolio of government and investment securities improved by 18.8% due to higher yields on government securities and a 33.0% increase in the holding of these securities.
Interest expenses from customer deposits jumped by 53.8% on the back of a 21.0% growth in customer deposits and an increased cost of customer deposits.
Total operating income grew by 26.2 to KES 82.9 billion as operating expenses excluding provisions rose by 32.6% driven by higher inflation and currency weakening.
Net loans and advances increased by 25.6% as government and investment securities rose by 33.0%. Customer deposits improved by 21.0% and the international business contributed significantly to both total assets and pre-tax earnings.
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