Kenya based Equity Bank regional subsidiaries continued to post impressive financial performance with the 5 banking subsidiaries posting double digit growth contributing a profit after tax of 18 percent up from 15 percent last year.During the period, Equity Group subsidiaries registered a 3 percent growth in deposits compared to 2018, and cumulatively accounted for 27 percent of total Group deposits which stood at 141.4 billion shillings ($1.3 billion) by end of the financial year.
Total Group assets during the period stood at 673.7 billion shillings ($6.2 billion) of which the subsidiaries contributed 27 percent at 190.9 billion shillings ($1.7 billion).
Equity subsidiary in the DRC was the major contributor of all subsidiaries assets contribution, ending the year at 80.1 billion shillings ($747 million), followed by Equity Uganda at 45 billion shillings ($419 million).
Rwanda and Tanzania were the other major contributors, closing the financial year at 30.3 billion shillings ($279 million) and 23. 9 billion shillings ($214 million).
The retail banking industry across East Africa is undergoing momentous changes, and all evidence hints at a regional industry on the cusp of exponential growth.
According to Price Water House Coopers, East Africa Banking Survey 2019, that featured Chief executives, Chief financial officers, and other top executives in the sector, social and behavioral change, and technology cumulatively accounted for 55 percent of factors they think will shape the banking sector in the next 5-10 years.
“The macroeconomic and operating environment across the region played a key role in the bank’s performance across the region, with many countries displaying an optimistic economic outlook,” Equity Bank said in a statement on Monday.
In Uganda, increased infrastructure investment, growing foreign direct investments in the oil and mining sub-sectors are expected to spur significant economic growth for the land locked country.
In Rwanda, there is much optimism with economic projections hinting at an 8 percent economic growth in 2020, supported by exports growth, public investments and policy reforms aimed at achieving the long term development goals.
In Tanzania, the growth is expected to be spearheaded by robust private sector consumption and investment in the mining and construction industries, the bank noted.