Equity Bank has posted a 3 per cent net profit dip in its third quarter.
On Monday Equity Bank reported the drop to Sh. 14.6 billion in third quarter after tax profit as its interest income fell 11 per cent to Sh. 35.4 billion.
Transactions income, though, increased 28 per cent to Sh. 21.3 billion.
The results further showed that the bank is increasing its investment in government securities in an effort to shore up the reduced earnings from loans.
It’s investment in government securities jumped 37 per cent from Sh. 93.1 billion to Sh. 127.7 billion. Equity Group CEO James Mwangi attributed the increased investment in fixed income to higher returns than on new loans.
“This is not lazy banking because the return on government securities is higher,” he said, adding that the bank is still unable to lend to micro borrowers whose default rate is as high as 80 per cent.
“We are not able to lend to the micro borrowers whose default rate is as high as 80 per cent.”
