Equity third quarter profit up 79 per cent to Sh26.9 billion
Buoyed by impressive performance by regional subsidiaries, Equity Group profit for the third quarter has soared 79 per cent to close at Kes26.9 billion owing to jump in interest income and drop in loan loss provision.
In an investor briefing today, Equity Group CEO Dr James Mwangi said the regional lender recorded growth in the deposits and revenue.
“Non-funded income grew by 29 per cent faster than the interest income from loan book which grew by 24.4 per cent as the bank deployed deposits to high-earning asset base other than government securities. We continue to look at where we can invest much for revenue,” Dr Mwangi said.
Equity’s non-funded income closed the quarter at Kes31.9 billion while net interest income from loans and advances, and government securities edged up by 23 per cent to Kes48.4 billion.
During the quarter under review, the lender’s total interest income grew by 25 per cent to Kes80.4 billion from Kes64.1 billion in the previous period.
The loan book expanded by 10.7 per cent to Kes559.01 billion from Kes504.8 billion in the three-month period ended June.
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In the quarter, the value of bad loans eased by 9.7 per cent to Kes56.18 billion compared to the three-month period ended June.
Out of the Kes171 billion offered in loans, Dr Mwangi said the bank sees minimal changes that will pose a risk to the current provision made for the loan book.
The BCDC bank in Congo recorded an impressive 125 per cent year-on-year surge in net profit to Kes2.2 billion on the back of improving macro- economic conditions.
“BCDC continues to be the most profitable regional subsidiary and we believe that going forward, DRC will be a key driver of growth,” analysts at AIB-AXYS Africa noted.
The bank continues growing strong in the use of internet, mobile and digital banking systems as seen in the value of mobile and online transactions as compared to the branches.
“74 per cent of our customers using cashless payment capabilities rather than transacting in cash hence promoting a cashless economy,” noted Dr Mwangi.
