– Equity Group CEO and MD James Mwangi said the coronavirus pandemic had created uncertainty in the financial sector
– The lender’s net interest income grew by 11% on the back of a 24% year on year growth on loan book to KSh 379.2 billion up from KSh 305.5 billion
– Equity had earlier cancelled a KSh 9.4 billion dividend payout to its shareholders citing COVID-19 fears as it sought to conserve cash
Equity Group has recorded a 14% drop in profits to KSh 5.3 billion for the first quarter of 2020 compared to KSh 6.2 billion it registered in a similar period in 2019.
The reduction in the lender’s net earnings was attributed to increase in loan provisions tenfold to KSh 3 billion up from KSh 300 million the previous year.
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Equity Group CEO and MD James Mwangi said the coronavirus pandemic had created uncertainty in the financial market. Photo: Equity Bank.
Source: Facebook
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Speaking while releasing the results on Thursday, May 28, Equity Group CEO and MD James Mwangi said the coronavirus pandemic had created uncertainty in the financial sector. “The global COVID-19 pandemic has mutated into a global economic crisis, occasioned by a sudden standstill of economic activity as a result of the global lockdown. This has introduced unprecedented uncertainty within the global financial systems prompting us to adopt a conservative approach – fortifying our balance sheet and assuring ample liquidity to support our customers," said Mwangi. Equity Bank building. The Group continued to enjoy robust growth with total assets registering a 14% year on year growth to KSh 693.2 billion from KSh 605.7 billion. Photo: CGTN.
Source: UGC
READ ALSO: Mbunge Aisha Jumwa ang’olewa katika kamati ya bunge The bank, however, continued to enjoy robust growth with total assets registering a 14% year on year growth to KSh 693.2 billion from KSh 605.7 billion driven by a 17% growth in customer deposits to KSh 499.3 billion from KSh 428.5 billion.Net interest income grew by 11% on the back of a 24% year on year growth on loan book to KSh 379.2 billion up from KSh 305.5 billion, which reflected strain with the non-performing loan book growing to 10.9% up from 9.1% the previous year. […]