Equity Group Holdings Plc has posted an 18 per cent growth to Ksh 11 billion for the period ended in June 2018 up from Ksh 9.4 billion in the same period last year.
The bank’s group balance sheet registered a growth of 7 per cent to reach Ksh 542 billion up from Ksh 505 billion. This was driven by growth in customer deposits of 9 per cent to Ksh 394 billion from Ksh 363 billion.
The Group’s deployment of funding was underpinned by investment in government securities which grew by 37 per cent to Ksh 159 billion from Ksh 116 billion.
Loans to customers and households had a marginal growth of 4 per cent to Ksh 275 billion up from Ksh 265 billion which clearly shows the squeeze the interest rate capping has had on the private sector.
Interest income grew by 10 per cent to Ksh 25.4 billion up from Ksh 23 billion driven by investment in government securities and growth of loan advances.
Regional subsidiaries grew their profitability by 62 per cent to Ksh 2.8 billion enhancing their contributions to the Group’s profitability to 18 per cent from 13 per cent.
The group’s NPLs ratio went up from 7.3 per cent to 8.4 percent due to delayed payments to contractors and county and central governments. However the loan loss provision grew by 22 per cent to Ksh 9.5 billion from Ksh 7.8 billion.
CEO James Mwangi said that 97 per cent of the lender’s transactions are being carried out outside the branch. However branch lending transactional value is at 78 per cent while that of mobile lending is at 22 per cent.
