An Equity Bank branch in Nairobi. The lender has posted an 18 per cent increase in net profit to Sh15.1 billion for the nine months to September. PHOTO | FILE Equity Bank has posted an 18 per cent increase in net profit to Sh15.1 billion for the nine months to September, riding on higher returns from government securities.
The bank’s investment in government securities increased by 156 per cent to Sh82.4 billion, in turn pushing up interest income by 26 per cent to Sh39.8 billion.
The bank loan book expanded by three per cent in the period to Sh271.4 billion, while its deposit base increased by 4.8 per cent to Sh331.3 billion.
Banks were expected to increase their investments in government securities following the signing of the interest rate cap law, which limits the rates on customer loans to four percentage points above the prevailing Central Bank Rate.
Equity is the first listed lender to release third quarter results, with its big shift towards government securities likely to be the trend in the industry.
Non-interest income however contracted by 1.2 per cent to Sh16.6 billion on lower income from loan fees and commissions, which dropped from Sh4 […]