Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Equity Bank HY profit drops by 7.4pc to 9.4b as assets cross Sh500Bn

Equity Group Chief Executive James Mwangi says the growth in assets is attributed to the Bank’s innovative, diversified and transformative business model./FILE

NAIROBI, Kenya, Aug 22 – Equity Group Holdings has posted a 7.4 percent decline in profit from the Sh10.1 billion it posted in the first six months of 2016 to Sh9.4 billion same period in 2017.  

The Group’s Chief Executive Dr. James Mwangi has said the headwinds in the financial sector including the interest rate capping and uncertainties in the operating environment have impacted Kenya’s unit, which contributes over 90 percent of the profit to the Group.

“Regional Subsidiaries have grown to contribute 10pc of total income from 5pc and we project the units outside Kenya contributing 40pc in 5 years,” said Mwangi.

The bank’s profits from its operations in Tanzania, Rwanda, Uganda and DRC all grew by double digits, with Uganda’s profit growing by an exceptional 139 percent.

South Sudan branch, however, saw a drop of profit by a massive 125 percent, due to the ongoing conflict, to just break even.

The Group’s assets hit half a trillion shillings, a growth of 14 percent for the period ended 30th June.

Mwangi says the growth in assets is attributed to the Bank’s innovative, diversified and transformative business model.

He says the Bank is now redirecting its focus on an adjusted business model that includes innovation, digitization, non-funded income growth and regional diversification.

“The new business model of Equity Bank focuses on growing and expanding non-funded income, regional diversification, liquidity and balance sheet agility and treasury operations,” said Dr. Mwangi at an investor briefing.

Other focus segments include asset quality, innovation and digitization, and efficiencies and cost optimization.

Advertisement. Scroll to continue reading.

“The revised business model has played a big part in cushioning the business as well as boosting value creating for shareholders. Innovation had proved to be a great enable in driving growth. We are already registering efficiency gains from digitization,” adds Dr. Mwangi.

The interest rate capping regime saw a decline in funded income by 15 percent to Sh17.9 billion while non-funded income grew by 20 percent to Sh13 billion during the six months.

“2017 is proving to be an extension of the tough operating environment witnessed in 2016 but as a Group we will continue to focus on enhancing an agile balance sheet with strong liquidity and improved asset quality.”

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...