Equity Group has reported Sh36.2 billion in net earnings for the nine months ending September 2023 compared to the Sh34.4 billion realized in a similar period last year.
The 5 percent growth was backed by stronger revenues in the lender’s subsidiaries outside Kenya as its Kenyan subsidiary continues to struggle mainly due to economic shocks, including high inflation and the depreciating currency.
The lender, which is listed on the Nairobi Securities Exchange (NSE), has a presence in six countries- the Democratic Republic of Congo (DRC), Kenya, Uganda, Tanzania, South Sudan, Rwanda, and a representative office in Ethiopia.
Equity Bank Kenya’s profit after tax declined 20 percent to Sh19.3 billion as subsidiaries in DRC, Uganda, and Rwanda recorded stronger revenue performance.
”In the entire region where Equity Bank operates, Kenya is the only country that has had the biggest impact of the global macro-economic shock. Kenya has had the most significant currency devaluation from Sh116 to the current Sh157.’’ Equity Bank CEO James Mwangi said.
Equity makes Sh. 36.2 billion net profit in 9 months
”That has carried the biggest impact as it has translated into imported inflation at a time the country had to import food as well as energy, making the situation in Kenya quite challenging,’’ he added.
In DRC, revenue grew 81 percent to Sh39.2 billion, while Equity Bank Uganda registered a 33 percent revenue surge to Sh10.8 billion.
In Rwanda, Equity Bank’s revenue grew 38 percent from Sh4.9 billion to Sh6.8 billion while in Tanzania and South Sudan, revenue surged 10 percent and 13 percent to Sh3.8 billion and Sh2.9 billion, respectively.
This is the first time the Kenyan subsidiary has recorded a drop in profits in seven years. The bank’s interest income from loans grew 64 percent to Sh70.4 billion, while interest from government securities grew 36 percent to Sh40.3 billion.
The lender’s loan book during the period expanded 26 percent to Sh845.2 billion while Non-funded income grew 38 percent to Sh56.5 billion.
