Equity Group Chief Executive Officer (CEO) James Mwangi has experienced a significant decline in his net worth since the beginning of the year.
According to Billionaires Africa, Mwangi’s shrinking fortune was largely due to the market value down turn of his stake in Equity Group amid declining shares of Equity Group on the Nairobi Securities Exchange (NSE).
His stake at Equity Group declined by Sh. 1.62 billion($11.69 million) since the start of the year. The fall saw his market valuation sink to Sh. 9.75 billion ($70.26 million) from Sh. 11.37 billion ($81.95 million) in January.
Despite the sinking share price of Equity Group, it remains the second most valuable stock on the NSE, with a market capitalization of over $1 billion.
Mwangi is among the biggest shareholders, with a stake of 3.38 percent. He has also played a crucial role in reviving the bank, which was on the verge of collapse in 1993.
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Under Mwangi’s leadership, Equity Groups has risen from a struggling financial institution to one of the best-performing banks in Kenya.
In the first quarter of 2023, the bank’s profits after tax rose by 8 percent to Sh. 12.8 billion, up from Sh. 11.9 billion in a corresponding period in 2022.
Profitability was driven by a significant growth in the non-funded income, which jumped 57 percent from Sh. 11.5 billion to Sh. 18 billion during the review period.
Brand Finance 2022 ranked Equity Group the 5th strongest banking brand in the world and 338 overall among the top 500 banking brands, with a Brand Strength Index of 90.8.