Equity Centre1 Large Equity is once again named as one of the top banks worldwide. The Kenyan bank has been ranked 39 globally on return on assets, 71 on return of capital, and 149 on soundness based on Capital Assets to Assets ratio. This is according to The Banker magazine for the Top 1000 Banks in 2021.
This ranking is arrived at after analysing banks through eight categories including growth, profitability, operational efficiency, asset quality, return on risk, liquidity, soundness and leverage.
In the overall ranking, Equity came 22nd in Africa and 761st globally based on its Tier 1 capital base of USD 1,096 Million
The company’s exemplary performance comes in the wake of the COVID-19 pandemic which shut down several sectors of the Kenyan economy. The bank says it prioritised people over profits making significant investments in protecting communities and stakeholders.
In partnership with the Kenya COVID-19 Emergency Board, it provided PPEs to health workers in 56 county and national hospitals, and 60 faith-based facilities. The lender also supported 17,800 Wings to Fly and Elimu Scholars to cope with the prolonged school closure. It provided them with solar-powered radios and lamps with a mobile charging unit that allowed them to continue learning while providing for their life’s essentials financed by a monthly stipend with the support of the Mastercard Foundation.
During the multi-crisis year, Equity focused on social impact investment, forgoing Kshs. 1.5 billion in waived mobile transaction fees, waiving Kshs.1.2 billion in loan rescheduling fees and accommodating Kshs.171 billion (or 31%) of the loan book for up to 3 years of principal and interest repayment breaks to enable businesses to survive.
Commenting on the ranking, Equity Group Managing Director and CEO Dr James Mwangi noted that the ranking is an indication that Equity remains robust despite the challenging operating environment.
“These global rankings are truly an affirmation befitting the financial strength and professionalism of the Bank, as well as the measures we took in our response to the COVID-19 pandemic. We strengthened our capital buffers by retaining profits and withholding dividend payouts, took long-term loan facilities that strengthened our liquidity buffers, supported host communities and our clients to mitigate the impact of the crisis on them by waiving fees and rescheduling their loans to match loan repayments to new cashflow patterns,” Dr James Mwangi, Equity Group Managing Director and CEO observed.
Equity Group, which operates in six countries, weathered the COVID-19 disruption to register a […]