Equity Bank profits grow nine per cent on digital effect

OPTIMISTIC: Equity Bank CEO James Mwangi said they expect even better full year results.Photo/Karuga Wa Njuguna Equity Bank Group reported a net profit of Sh12 billion for the half year ended June 30, a nine per cent growth compared to Sh11 billion reported same period last year.

The bank attributed the growth on digitalisation effect that has seen 95 per cent of transactions happen outside the bank.

The successful execution of the Equity 3.0 innovative business strategy which is centered on digitization and virtualization, disruption of delivery channels, transforming the business model and redefining customer’s experience delivered a 10 per cent growth in Profit during the period,’’ Equity Bank CEO James Mwangi said.

Profit before tax grew by 10 per cent to reach Sh17 billion up from Sh15.5 billion same period last year.

Total income grew by 10 per cent to Sh36 billion up from Sh32.7 billion driven by growth in treasury income of 12 per cent from Sh10.3 billion to Sh 11.5 billion.

The lender registered an 18 per cent growth in total assets to reach Sh638.7 billion up from Sh542.02 billion registered the same period previous year.

Interest earning assets grew by 15 per cent to Sh500.5 billion up from Sh433.9 billion driven by a 17 per cent growth in net loan book to Sh320.9 billion up from Sh275 billion and a 13 per cent growth in government securities to Sh179.6 billion up from Sh158.9 billion.

“Our customer centric and ecosystem approach to inter mediation has given us an opportunity to target our customer’s horizontal and vertical value chains,’’ Mwangin said.

Total liabilities grew by 18 per cent to reach Sh535.9 billion driven by a growth of 16 per cent in customer deposits from Sh393.7 billion to Sh458.6 billion.

The bank recorded an NPL ratio of 8.6 per cent against Kenya banking sector NPLs ratio of 12.7 per cent with a coverage of 73.7 per cent.

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