The group rescheduled 32% of all client loans to support recovery from COVID-19 pandemic | THE INDEPENDENT | Equity Group Holdings has recorded a 99% jump in profit after tax to Ksh40bn for the year ended December 2021 riding on higher yields from interest paid by borrowers and an improved business environment.
The lender also reported a 29% growth in balance sheet to Kshs1.305 trillion from Kshs1.015 trillion and a 29% growth in customer deposits toKshs959billion.
This makes it the largest bank in Kenya and in the region by all key parameters – balance sheet, profitability, market capitalisation and customer base. There was an improvement in non -performing loans from 11% to 8.3% and increase of provision coverage from 89% to 98%.
For shareholdings, there was a 98% growth in earnings per share to Kshs 10.40 from Kshs 5.20. A dividend pay-out of Kshs 11.3 billion was reported, representing a 50% increase from last dividend pay-out for 2018.
“When COVID- 19 struck, Equity Group sought its true north, its purpose and commitment to support its members. The Board and Management decided to focus on saving lives and livelihoods, giving dignity, and expanding opportunities for wealth creation while keeping the lights of the economies on,” the lender said in a statement.
During the period it focused on supporting customers and in the process increased and accelerated loan disbursements and growth by over 29% and 23% for the two years respectively while the economy was plummeting to a GDP growth rate of negative 0.1% from a high of 5.8%.
Income increased during the period
Net interest income grew by 25% to Kshs 68.8 billion up from Kshs 55.1 billion. This was driven by a 23% growth in loan book to Kshs 587.8 billion up from Kshs 477.8 billion and an 81% growth in investment in government securities to Kshs 394.1 billion up from Kshs 217.4 billion.
Non funded income grew by 15% to Kshs 43.6 billion up from Kshs 37.8 billion driven mainly by trade finance, payment channels and foreign exchange trading income. Trade finance registered a 55% growth in revenue to Kshs 3.2 billion up from Kshs 2.1 billion.
Despite zero-rating mobile transaction offerings, transaction income grew by 37% to Kshs 10.4 billion up from Kshs 7.6 billion on the back of E-commerce and Merchant banking business.
Foreign exchange trading income grew by 33% to Kshs 8.3 billion up from Kshs 6.2 billion driven by diaspora inflows that […]
