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The group's total assets posted a 24 percent growth during the year to close at Sh243 billion up from Sh196 billion/FILE

Kenya

Equity Bank 2012 profit hits Sh12bn

The group's total assets posted a 24 percent growth during the year to close at Sh243 billion up from Sh196 billion/FILE

The group’s total assets posted a 24 percent growth during the year to close at Sh243 billion up from Sh196 billion/FILE

NAIROBI, Kenya, Feb 28 – Equity Bank’s 2012 full year net profit has gone up by 17 percent to Sh12 billion from Sh10.3 billion in 2011.

The group’s total assets posted a 24 percent growth during the year to close at Sh243 billion up from Sh196 billion.

Net customer loans reached Sh136 billion up by 19 percent from Sh114 billion.

Investment in government securities grew by 35 percent to Sh40.8 billion up from Sh30.2 billion, while cash and bank placements grew by 28 percent to Sh45 billion up from Sh35.3 billion.

“Despite the difficult prevailing market conditions, the group’s commitment to its long-term strategy has enabled us to capture emerging growth opportunities in Kenya and the region,” Equity Bank CEO James Mwangi said on Thursday.

Total income grew by 28 percent to Sh.36.8 billion up from Sh28.67 billion.

The growth in income was driven by a 19 percent growth in loans from Sh114 billion to Sh136 billion and 35 percent growth in investment in government securities resulting in growth of 48 percent in net interest income from Sh16 billion to Sh24 billion.

However total operating expenses grew by 22 percent to Sh19.58 billion up from Sh15.98 billion.

The bank has announced a divided pay out of Sh1.25 per share up from Sh1 per share in the previous year or Sh4.6 billion up from Sh3.7 billion.

“We have continued to implement a winning strategy that focuses on delivering value to the customer, disciplined cost management and increasing productivity of the subsidiaries,” Mwangi added.

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The bank plans to enhance its market share through consolidation of the regional business; rolling out electronic delivery channels and expanding agency banking in the recently established countries.

It has operations in Uganda, South Sudan, Rwanda and Tanzania.

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