Equity Group Holdings Profit After Tax (PAT) for the nine months to September 2023 grew 5.3 per cent to Ksh36.2 billion backed by stronger performance by the lender’s subsidiaries.
This is from the Ksh34.4 billion the group posted in a similar period the previous year.
Equity Bank Kenya contributed 50 per cent of the Group’s performance while the remaining 50 per cent was collectively contributed by the lender’s subsidiaries in the Democratic Republic of Congo (DRC), Uganda, Rwanda and Tanzania.
DRC posted a growth of 142 per cent, Uganda 23 per cent, Rwanda 46 per cent and Tanzania 177 per cent.
Equity Bank Kenya PAT declined 20 per cent to Ksh19.3 for the period under review.
Equity Group grew its loan book by 26 per cent to Ksh845.9 billion from the Ksh673.9 billion it posted in a similar period a year before.
Read: Equity, Mastercard Ink Agreement To Scale Consumers’ Payment Experience
Equity group total revenue rose 28 per cent during the review period to Ksh130.4 billion compared to Ksh102.4 billion posted over the same period the previous year
While interest expense on funding from deposits and long-term debt grew by 58 per cent as a result of the high cost of funding driven by the current economic environment, top-line interest income grew by 32 per cent, with net interest income growing by 21 per cent as the Group chose to cushion its customers by not passing the entire cost of funding over to them.
“It was a strategic decision to support and cushion our customers to fortify their opportunities for survival and enhance their resilience during these difficult economic times by absorbing part of the funding costs and keeping yields on loans and government securities at almost the same level at 12.1 per cent and 11.5 per cent respectively,” said Equity Group Managing Director (MD) and Chief Executive Officer (CEO) James Mwangi.
“We grew our loan book by 26 per cent despite the uncertainty of difficult economic times to ensure our customers continued to fund their dreams while keeping the lights of the economy on. We did not hesitate in making this strategic decision to focus on supporting our customers to navigate and survive the difficult and challenging microeconomic environment as this aligns to our true north, our purpose to change lives, give dignity and expand opportunities for wealth creation,” added Equity Group MD.
Read: Equity Rolls Out One Equity Till Number Platform
Equity Group deposits grew 20 per cent to Kshs1.2 trillion up from Ksh1 trillion, with Equity Bank Kenya contributing 51 per cent after growth of 4 per cent while subsidiaries contributed a 49 per cent growth driven by deposit growth of 28 per cent in DRC, 32 per cent in Uganda, 39 per cent in Rwanda and 56 per cent in Tanzania.
The Group’s loans grew 26 per cent to Ksh845.9 billion up from Ksh673.9 billion with Kenya contributing 54 per cent after a growth of 8 per cent while subsidiaries contributed 46 per cent growth reflecting strong growth of 71 per cent in DRC, 40 per cent in Uganda, 33 per cent in Tanzania and 20 per cent in Rwanda.