Equity Bank Group half year net profit has risen 7.8 per cent. The bank’s after-tax profit for the period ended June 30, 2023, jumped to Sh. 26.3 billion, supported by higher income from lending and transactions.
Non-funded income rose 41.2 per cent to Sh. 36.5 billion as foreign exchange trading income went up 68 per cent. Net interest income went up 16.5 per cent to Sh. 46.4 billion.
The bank’s loan book expanded 25.6 per cent as interest income from its portfolio of government and investment securities improved by 18.8 per cent due to higher yields on government securities and a 33.0 per cent increase in the holding of these securities.
Total assets rose 23 per cent to Sh. 1.6 trillion, while loan-loss provisions net of recoveries were up 89 per cent to Sh. 6.3 billion.
Equity, which also operates in Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo, reported a reduced reliance on the contribution of the Kenyan banking subsidiary, with other subsidiaries contributing 46 per cent of total assets and 45 per cent of Profit Before Tax.
98 Scholars under the Equity Leaders Program (ELP) join top Global Universities
The impressive subsidiary performance was primarily driven by insurance and a strong business in the DRC.
“We are confident Equity Group is strategically positioned as a regional systemic bank among the top 3 in 5 of its 6 operating countries to support further integration and increased cross-border trade under the African Continental Free Trade Area while supporting the region to remain the fastest growing common market in the world to offer opportunity for long term sustained value creation,” Equity Group CEO James Mwangi said.
Despite the challenging macro and micro economic environment, focus on asset quality management saw the Group register a Non-Performing Loans (NPL) ratio of 9.8 per cent against an industry average of 14.9 per cent.
