Equity Group saw its net profit during the first six months of this year doubled to 14.4 billion shillings when compared to what the lender made during a similar period last year.
The profit mainly driven by total interest income that increased 21.6% to 30.07 billion shillings and a 22.33 percent reduction in total operating expenses to 19.33 billion shillings.
Despite an increase in non-performing loans in the banking industry, Equity Group increased the net loans and advances during the first six months of this year to 332.8 billion shillings from 293.7 billion shillings during a similar period last year.
This paid off for the lender that saw its total interest income increase to 30.07 billion shillings, up from 24.74 billion shillings a year ago, representing an increase of 21.6 percent.
On the other hand, the total operating expenses reduced from 19.33 billion shillings during the first six months of last year to 15.01 billion shillings.
This represents a reduction of 22.33 percent. The key highlight in the operating expenses is the loan loss provision, which reduced 73.26 percent from 6.73 billion shillings to 1.8 billion shillings.
The 19 percent increase in total operating income to 33.9 billion shillings and the 22.33 percent reduction in total operating expenses powered Equity Group to double its net profit to 14.4 billion shillings.
Despite this, the stock of gross non performing loans surged from 32.79 billion shillings to 43.83 billion shillings as at June this year, representing an increase of 33.65 percent.
The lender has also increased the accumulated loan loss provision from 12.37 billion shillings as at June last year to 22.65 billion shillings as at June this year, representing an increase of 83.08 percent.
The value of digital transactions increased 111.3 percent to 2.5 trillion shillings while traditional channels like branches and ATMs facilitated transactions worth 1.37 trillion shillings, representing a growth of 24 percent.