Equity Group has deployed artificial intelligence (AI) to help fight fraud in addition to its engagements with the Communications Authority and the DCI, MD and CEO Dr. James Mwangi said during the earnings release on Thursday.
- •According to the lender, social engineering is a constant threat to the bank as it has no control of the numbers used by fraudsters to contact customers.
- •Last year, Equity is said to have lost millions to fraudsters, though the lender says it was quick to take action and recover most of the money.
- •The bank has announced 17% jump in profit before tax to KSh 60.7 billion, and a profit after tax of KSh 48.8 billion.
“When every fraud occurs we feed it to the AI to discover its uniqueness, we then pull that transaction for screening. We are making every effort because one fraud is too many, because that could be the only money a customer has in the account,” Dr. Mwangi said. He added that using AI to identify patterns has led to a 30% dip in fraud cases.
The bank’s reputation has taken a hit in the recent past following instances of fraud, some of which have led to the loss of millions in customer deposits.
“Social engineering is a menace, these are people coming from other networks making it difficult for the bank to have visibility of the numbers used by the perpetrators to engage our clients, we have gone ahead to engage the DCI to ease traceability of this numbers,” the Group’s Head of Security Naftali Mwangi added.
The Group’s total deposits grew to reach Kshs 1.4 trillion with the customer base growing to 21.6 million in 2024. Cash and cash equivalents rose by 19% to Kshs 345 billion, while investment securities grew to Kshs 512 billion, contributing to an overall liquidity ratio of 57%.
Regional subsidiaries contributed 49% of total assets, 48% of total loans and 54% of profit before tax, further diversifying the revenue base. The Kenya subsidiary, while still a major contributor, accounted for 46% of total revenue.
Equity Bank Rwanda revenue grew YoY by 36%, Tanzania by 20% and DRC by 9% while PAT for Equity Bank Rwanda grew by 30% YoY, Tanzania by 107%, Uganda 186% and DRC by 29%, signaling increasing contributions from regional operations.
The Group demonstrated commitment to its shareholders by proposing a dividend of Kshs 4.25 per share.
