Equity Group Holdings Plc has reported a 98% growth in half-year profits to sh572b (Kshs17.9b) up from sh291b (Kshs.9.1b) the previous year.
Speaking while releasing the results, Equity Group Managing Director and chief executive officer Dr James Mwangi attributed the growth to the Group’s aggressive growth strategy.
“The defensive and offensive strategy adopted by the Group at the onset of the COVID-19 pandemic to create resilience, agility and recovery has been very effective in positioning, navigating and driving performance,” Mwangi said.
The offensive growth strategy saw deposits register a 51% growth to sh26.2 trillion (Kshs.820.3b) up from sh17.4 trillion (Kshs 543.9b), while long term borrowed funds grew by 78% to sh3.2 trillion (Kshs. 102.3b) up from sh1.8 trillion (Kshs.57.6b).
Net Loans and advances grew by 29% to Kshs.504.8b up from Kshs.391.6b, while investment in Government securities grew by 46% to Kshs.315.5b up from Kshs.216.4b resulting in 50% growth in total assets to Kshs.1.12 trillion up from Kshs.746.5b.
The aggressive growth strategy effected by the Group resulted in a 33% growth in topline total income to Kshs.51.6b up from Kshs38.7b driven by a 26% growth in Net Interest Income of Kshs. 31.2b up from Kshs.24.6b and a 45% growth in Non-Funded Income of fees, commission and transactions to Kshs.20.4b up from Kshs.14.1b.
Net non-performing loans declined by Kshs. 5.4b from Kshs.28.3b to Kshs.22.9b due to the aggressive provisioning the previous year under the defensive strategy.
