, NAIROBI, Kenya, Aug 4 – Equity Group Holdings has registered a 12 percent pre-tax profit growth in its half year trading results released to Sh12.1 billion up from Sh10.8 billion posted within the same period last year.
Equity Group attributed its sustained growth to increased earnings from its banking subsidiaries across East Africa and success in its strategic initiatives geared to revenue diversification.
The group’s net profit grew similarly by 12 percent to Sh8.6 billion up from Sh7.7 billion last year.
Speaking during an investors briefing meeting on Tuesday Group CEO James Mwangi said the firm’s growth path remains firmly anchored on its regional business interests, diversification of revenue sources and dedication to foster lasting customer and strategic partnerships.
“Through the Equity 3 growth strategy, the group is pursuing a clear strategy to become one of Africa’s most respected diversified business Groups,” Mwangi noted.
The balance sheet maintained its growth streak to close at Sh400.9 billion this half year up from Sh302.9billion booked same time last year representing a 32percent growth rate on assets.
Equity Group’s balance sheet growth was driven by customer deposits which grew by 40percent to Sh301 billion up from Sh214.9 billion.
“The growth in deposits was coupled by the steady rise of the loan book representing a 27percent growth to Sh236.8 billion from Sh186.5 billion,” Mwangi said.
On the other end, total expenses grew by 22perecnt to Sh14.2 billion on the back of costs associated with the strategic investments recently made to enhance the enterprise resource planning capacity in 2014.
“This was geared at creating a robust Information technology capability, convergence of banking, telecommunications, channels and products backed by a commitment to fully digitize the Group’s operations. This has resulted to high system availability, stability and reliability.”
Meanwhile at the close of the half year trading period, Equitel, the Group’s telecommunication services firm, delivered through its Finserve Africa subsidiary, had registered more than 1 million subscribers.
Monthly mobile banking volumes for the half year reached Sh9.3billion to further confirm the viability of Equity Group’s strategic focus to expand banking penetration through the mobile phone delivery channel.