Equity Group Holdings has proposed a record dividend of Ksh15.1 billion after recording a Ksh43.7 billion for the year ended December 2023.
The decline in net profit by 5.1 per cent from Ksh46.1 billion in a similar period a year earlier is attributed to an increase in interest expenses outpacing the growth in interest income.
“The Ksh4 per share dividend amounts to a 36 per cent payout of the Ksh43.7 billion Profit After Tax or Ksh11.1 earnings per share and a dividend yield of 11.9 per cent on the 2023 year-end closing share price of Ksh33.65 or 800 per cent on par value,” said Equity Group Managing Director (MD) and Chief Executive Officer (CEO) James Mwangi.
Equity Group’s net interest income for the review period grew 21 per cent to Ksh104.2 billion up from Ksh86 billion while non-funded income registered a 30 per cent growth to Ksh75.9 billion up from Ksh58.3 billion in a similar period a year prior.
Gross trade finance revenue grew 90 per cent to Ksh11 billion from Ksh5.8 billion driven by a 106 per cent growth of trade finance-related lending and 26 per cent growth of trade finance guarantees and off-balance sheet items.
Total costs grew 52 per cent to Ksh128.2 billion up from Ksh 84.5 principally driven by a 139 per cent growth in loan loss provision of Ksh32.8 billion up from Ksh13.7 billion to strengthen asset quality buffers.
Group’s gross balance sheet grew 26 per cent to Ksh1.821 trillion up from Ksh1.447 trillion driven by a 29 per cent growth in customer deposits to Ksh1.358 trillion from Ksh1.052 trillion in a similar period in 2022.
Equity Group’s total assets for the review period grew to Ksh1.822 trillion up from Ksh428.1 billion as shareholders’ funds grew to Ksh218.1 billion up from Ksh72.1 billion.
“With clarity of the Africa Recovery and Resilience Plan, strong leadership and human capital, strategic positioning in one of the world’s fastest growing regions, a diversified business model across banking, insurance, health, philanthropy, technology and its execution, risk management capabilities, resilience and strong buffers, Equity is uniquely positioned to deliver on a positive and promising focus to all its stakeholders,” added Mwangi.
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