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Equity Bank Chooses Customers Over profit

Nov 22, 2023
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Equity Group’s profit after tax has risen by 5pc to stand at Ksh 36.2 billion in nine months of the this year to September.

The third quarter income statement by the lender shows that the net profit increased from Ksh 34.4 billion the bank registered last year backed by stronger revenues across-borderbsidiaries.

The group’s total revenue rose by 28pc during the period to Ksh 130.4 billion compared to the Ksh 102.4 billion the bank registered over the same period last year.

Equity Group Chief Executive Officer Dr. James Mwangi said despite inflation and currency headwinds experienced in Kenya, other markets performed significantly well.

For instance, while Equity Bank Kenya delivered a 13pc growth in revenue to Ksh 68.4 billion, stronger revenue performance was registered by subsidiaries in the Democratic Republic of Congo, Uganda, and Rwanda.

“It is not the entire operating region that is being affected. What we may be losing in Kenya, because it’s the most globally interconnected where the Kenya shilling has deprecated the most, that is being compensated by the subsidiaries where they are able to contribute 50pc of the profits,” said Dr Mwangi.

Equity BCDC revenue grew 81pc to Ksh 39.2 billion while Equity Bank Uganda registered a 33pc revenue surge to Ksh 10.8 billion.

“As DRC becomes more efficient, you can see that it will hopefully this year beat Kenya in terms of returns on equity and returns on assets,” he said.

Equity Bank Rwanda’s revenue grew 38pc during the period under review, from Ksh 4.9 billion to Ksh 6.8 billion.

Equity Bank Tanzania and Equity Bank South Sudan reported revenue growth of 10pc and 13pc to Ksh 3.8 billion and Ksh 2.9 billion respectively.

The lender also reported a stronger income growth of 28pc from Ksh 100.9 billon reported during the same quarter last year to Ksh 129.1 billion.

“We saw a significant growth in non-funded income heavily driven by trade finance and treasury because of the currency conversions as we support cross border trade,” added Dr Mwangi.

Interest income from loans grew 64pc to Ksh 70.4 billon while interest from government securities grew 36pc to Ksh 40.3 billion.

Read Also: Equity Bank Emerges Best in Trade Finance

The lender loan book during the period expanded 26pc to Ksh 845.2 billion.

Non-funded income on the other hand increased by 38pc to Ksh 56.5 billion.

Equity Group closed the quarter under review with Ksh 1.2 trillion in deposits after a 20pc growth as total assets grew by 24pc to Ksh 1.69 trillion.

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