Subsidiaries push Equity Q1 profit up 25% to Sh16 billion
Regional lender Equity Group has posted a 25 percent increase in net profit to Kes16 billion in the three-month period ending March 31 attributable to strong performances across its subsidiaries in six East African countries.
In the quarter, the lender reported 9.64 percent inrease in customer deposits to Kes1.24 trillion while giving out Kes779.23 billion in customer loans, which was a 3.03 percent jump in credit compared to the corresponding quarter in 2023. At the same time, Equity Group reported 9.64 percent rise in assets to close the quarter at Kes 1.7 trillion.
“The regional banking subsidiaries contributed 63 percent of the Kes20.4 billion profit before tax with a return on average equity of 27.6 percent, cementing the Group’s position as the regional banking leader,” Dr. James Mwangi, Equity Group Managing Director and CEO, explained during an investor briefing on Monday, May 13.
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“Equity Group’s Kes1.7 trillion strong balance sheet, is underpinned by the region’s largest banking customer base, branch network and deposit base,” said Dr. James Mwangi.
At the moment, Equity Group has positioned itself with subsidiaries across six countries; Kenya, Uganda, Tanzania, Rwanda, DRC, South Sudan, along with a representative office in Ethiopia, Africa’s second most populous country.
“Equity is well-equipped to drive a culture of savings within the region, thus promoting economic development and stability,” added Dr Mwangi while highlighting that East Africa is one of fastest growing regions in the world, giving Equity a great opportunity to scale impact across economies.
During the quarter, Equity’s net Interest income soared by 28.4 percent to close at Kes27.8 billion. However, the lenders stock of gross non-performing loans swelled by 50 percent to Kes120 billion pushing the bank to substantially increase its provision for loan losses by 75 percent or Kes6.1 billion, the financial disclosures show.
