Equity Bank Group has posted a Sh. 12.3 billion net profit for the first three months of 2023. This profit represented a growth of 6.6 per cent and was largely driven by strong growth in non-funded income.
In the same period the previous year, the bank haf recorded a net profit of Sh. 11.5 billion.
“Non-funded income continues to grow much faster than interest income, and this is the momentum we want to maintain,” Equity Group chuef executive officer Dr. James Mwangi said.
In the period under review, non-funded income grew by 54 per cent to Sh.18.4 billion. This growth was driven by fees and commissions.
Net interest income rose by 12 per cent to Sh. 21.7 billion from Sh. 19.4 billion to Sh. 21.7 billion. Investment in government debt securities increased by one percent to Sh. 392.5 billion from Sh. 389.4 billion.
Equity’s loan book expanded by 21 per cent to Sh. 756.3 billion as customer deposits rose by 23 per cent to Sh. 1.111 billion.
The Group’s cash and cash equivalents jumped 55 per cent to Sh. 258.4 billion from Sh. 166.4 billion.
The lender’s costs went up by 46 per cent to Sh. 22.8 billion from Sh. 15.6 billion largely on higher staff costs and innovation and technological investments.
Equity has also raised its cover for dud loans by 127 per cent to Sh. 3.1 billion from Sh. 1.4 billion on what the bank states as a deteriorating operating environment.
Non-performing loans ratio, for instance, rose to 9.1 per cent from 8.65 per cent in March 2022.