Kenya’s largest bank by customers, Equity group, has posted impressive financial results in the first half of this year. The bank’s six-month pre-tax profit nearly doubled to KSh23.8 billion from KSh12.0 billion in the first half of 2020.
SHarp growth in Equity group’s interest income and non-interest income led to the high profit at the end of the six months period. Total interest income, the bank’s main source of revenue, climbed to KSh42.7 billion in the half-year period that ended on 30th June 2021, a 30% increase from KSh32.8 billion a year ago. Its non-interest income from fees and commissions on loans, foreign exchange trading income, dividend income, and other income, jumped by 44% to KSh20.8 billion from KSh14.4 billion in June last year.
The bank’s total operating expenses only increased by 3.8% to KSh28.1 billion at the end of 30th June 2021 from KSh27.1 billion at the end of June 2020.
Equity Group cemented its position as one of the largest financial institutions in East Africa after successfully acquiring 66.5% ownership in Congo’s second-largest bank, Banque Commerciale Du Congo (BCDC) at a cost of $95 Million in August last year.
Following the acquisition, the lender’s total assets grew by 50% to KSh1.12 trillion as of 30th June 2021 from KSh746.5 billion as of 30th June 2020 before the acquisition. The bank’s debt also jumped to KSh964.7 billion at the end of the first six months of 2021, from KSh623.1 billion in the same period a year ago.
Equity’s non-performing loans advanced to KSh62.2 billion in the first half of this year from KSh45.6 billion in the corresponding period last year. Its loan loss provisions fell to KSh2.9 billion in June 2021 from KSh8.0 billion in June 2020.
Also read: KCB, Equity Group On List of Africa’s Top 25 largest lenders
