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Equity Group net profit grows to Ksh 16B

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Equity Group CEO Dr James Mwangi

Equity Group has reported a 16pc growth in profit after tax to Ksh 16 billion from Ksh 12.8 billion for the first three months of the year to March.

Kenya’s second largest bank by assets posted stronger revenue performance during the quarter where total income grew by the same margin to Ksh 49.6 billion from Ksh 39.7 billion.

“The regional diversification of the banking business has worked very well for us. As we can see profit before tax, the regional subsidiaries are contributing 63pc of the entre profit,” said Dr James Mwangi during the investor briefing on Monday.

During the period, gross profits increased by 21pc to Ksh 20.4 billion with stronger earnings reported in Kenyan subsidiary which now contributes 41pc of the revenue followed by EBCDC with 32pc, Equity Bank Uganda 8pc and Equity Bank Rwanda 6pc.

Net interest earnings from loans shot up 28pc from Ksh 21.6 billion to Ksh 27.8 billion as non funded income surged 21pc to Ksh 21.8 billion.

During the period, the bank’s loan book grew 3pc to Ksh 779.2 billion from Ksh 756.3 billion.

The group’s net loan loss provision increased from Ksh 3.1 billion to Ksh 5.6 billon.

Equity Group closed the quarter under review with an asset base of Ksh 1.69 trillion after growing 10pc.

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