Equity Group Holdings posted a Profit After Tax(PAT) of KSh 40.1 Billion from KSh 20.1 Billion in 2020, an increase of 99%.
According to the Equity Group’s audited financial statements and other disclosures for the year ended 31st December 2021, this performance now ranks Equity Group as the most profitable lender in Kenya in 2021.
Shareholders will be significantly rewarded after directors of the bank declared a 50% increase in dividend payouts to KSh 11.8 billion. This is the first time Equity is rewarding its shareholders since the last dividend payout of 2018. The dividend is at the rate of KSh 3 per share.
In support of the economy during the COVID-19 crisis, the Group waived mobile banking transaction fees amounting to KSh 2.9 billion and KSh 1.2 billion of loan rescheduling fees to enhance clients’ disposable income while easing the cost of living pressure to low-income households.
The Group rescheduled loans amounting to 32% of all client loans to support businesses to survive and households to realign to new and emerging opportunities.
The shareholders paid the price for two consecutive years preceding dividends to backstop the risk of uncertainty and enable the Group to enhance its capital buffers.
International financial and development partners worked with Equity to strengthen its capital buffers through US$ 265 million of Tier 2 capital and partial credit guarantees in a credit risk-sharing mechanism for sectors adversely affected by COVID – 19.
“This fortified our capital buffers and increased our ability to support our customers, enhanced liquidity buffers to 64% while mitigating cashflow risk during the uncertain times,” said Dr James Mwangi, Equity Group Holdings CEO and Managing Director while releasing the 2021 audited results this Tuesday.
The lender’s Pre-Tax Profit increased significantly to KSh 51.9 billion in 2021 from KSh 20.9 billion in 2020.
The Group’s Balance Sheet size grew from KSh 1.015 trillion in 2020 to KSh 1.305 trillion in 2021, a growth of 29% growth. Equity Group’s profitability, as measured by Earnings per Share (EPS), grew 98% to KSh 10.40 in 2021 from KSh 5.20 in 2020
Net loans to customers rose from KSh 477.8 billion to KSh 587.8 billion at the end of 2021.
In both local and foreign currency, cash of the Group increased from KSh 44.8 billion in 2020 to KSh 62.8 billion in 2021.
Customer Deposits of the Group increased 29% from KSh 740.8 billion in 2020 to KSh 958.9 billion in 2020, while the lender’s borrowing edged up from KSh 87.2 billion in 2020 to KSh 123.9 billion in 2021.
Total Shareholders’ Funds, which measures how much the lender’s shareholders would receive if the business were to liquidate, increased from KSh 138.6 billion in 2020 to KSh 176.2 billion in 2021.
Total Interest Income from Loans, Government Securities, Deposits with other banking institutions and Other interest income increased from KSh 73.8 billion in 2020 to KSh 94.3 billion, while Total Interest Expenses increased from KSh 18.6 billion in 2020 to KSh 25.5 billion in 2021.
Total Non-interest Income, earned from Fees and Commissions, Forex Trading and Dividend Income increased from KSh 38.5 billion in 2020 to KSh 44.6 billion in 2021.
The lender’s Total Operating Income increased from KSh 93.7 billion in 2020 to KSh 113.4 billion in 2021.
The Group cut its provisions for loan losses to KSh 5.8 Billion in 2021 from KSh 26.6 billion in 2020, an indication of an improved lending environment.
Subject to Shareholders’ Approval, Equity Group will pay the declared dividend to its shareholders on or before June 3oth June 2022 to members on the register on or before the closure date of 20th May 2022.
The lender will hold its Annual General Meeting(AGM) on June 23rd 2022 with more details to be announced at a later date.
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