Equity bank net profit up 10.3 pc

Written By: O'brien Kimani
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Equity Group made Ksh17.5 billion in net profit during the first nine months of this year representing a 10 percent growth.

CEO James Mwangi has also said the lender’s South Sudan and Ugandan businesses continued to suffer from slow growth which is dragging its regional subsidiaries expansion.

The volume of diaspora remittances grew by 28% to reach 102 billion shillings.

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The bank says though the lifting of interest rates cap will boost its loan book since it had adjusted its operations to the interest rates cap era.

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Equity group Chief James Mwangi has said despite slow growth in South Sudan and Uganda, the bank is seeing growth as its subsidiaries jump 26% compared to Kenya which recorded a 21% growth.

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The bank further says its internet and mobile banking is growing faster than its brick conventional banking model, but it doesn’t have any plans to close its brick and mortar business.

Merchant banking business has grown by 27% to reach a transaction volume of 88.4 billion shillings, making this banking model one of its fastest-growing segment.

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However, the bank is still struggling with a high rate of non-performing loans, which now stands at 8.3 percent of its loan-book, almost 5 percent above the market average.

The bank is blaming this on difficult business environment especially in the small and medium enterprises segment.

 

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