Equity Group Holdings is a Pan-African financial services group based in Nairobi, Kenya with Bank subsidiary operations in Kenya, Rwanda, Uganda, Tanzania, South Sudan, and the Democratic Republic of the Congo. The Group’s operations include a fintech com Dr. James Mwangi is a champion for socio-economic transformation. The Kenyan born banker and leading businessman is a lifelong entrepreneur whose career has stood as an example of how a successful business can deliver value to its shareholders and create
Equity Group Holdings Plc released first quarter 2020 results which reflect the assessment the Group places in the uncertainty created by COVID-19.
Equity Group Holdings Plc (EQTY:EQTY)
A strong capital and liquidity position give us the strength and capacity to cushion our business against external shocks and accommodate and walk with our customers during these challenging times.”
NAIROBI, KENYA, May 28, 2020 / EINPresswire.com / — Equity Group Holdings Plc released first quarter results which reflect the assessment the Group places in the uncertainty created by COVID-19. Profit before provisions was up by 10% to Kshs.10 billion from Kshs. 9.1 billion the previous year. However, the Group increased its loan loss provision tenfold to Kshs. 3 billion from Kshs. 300 million the previous year leading to a decline of profit after tax by 14% from Kshs. 6.2 billion to 5.3 billion for the same period last year.
While releasing the results Dr. James Mwangi , Group Managing Director and CEO said, “The global COVID-19 pandemic has mutated into a global economic crisis, occasioned by a sudden standstill of economic activity as a result of the global lockdown. This has introduced unprecedented uncertainty within the global financial systems prompting us to adopt a conservative approach – fortifying our balance sheet and assuring ample liquidity to support our customers.”
The Group continued to enjoy robust growth with total assets registering a 14% year on year growth to Kshs. 693.2 billion from Kshs. 605.7 billion driven by 17% growth in customer deposits to Kshs. 499.3 billion from Kshs. 428.5 billion.
Net interest income grew by 11% on the back of a 24% year on year growth on loan book to Kshs. 379.2 billion up from Kshs. 305.5 billion, which reflected strain with the non-performing loan book growing to 10.9% up from 9.1% the previous year. Aggressive provisions saw the cost of risk rising to 3.24% up from 0.37%.
The Group’s total income grew by 13% to Kshs. 19.7 […]
