, NAIROBI, Kenya, Mar 22 – Equity Bank Group has posted a 14 percent growth in its profit after tax for the year ended December 2017 to hit Sh18.9 billion up from Sh16.6 billion in 2016.
Group CEO James Mwangi says the performance is against a backdrop of a challenging operating environment over the past 2 years that includes bank failures, severe drought, prolonged presidential elections and interest rate capping which caused a credit crunch.
Total Assets grew by 11 percent to Sh524.5 billion up from Sh473.7 billion year on year with net loans growing by 5 percent to Sh279.1 billion up from Sh266.1 billion.
Non-performing loans closed at 6.3 percent compared to 10.6 percent for the banking sector.
“We are reaping the benefits of a strong social brand that focuses on enhancing our relationship with the community through a shared prosperity approach to business. This coupled with a staff force that is talented, passionate, and committed to our shared vision of transforming the lives and livelihoods of our people gave the Group a strong foundation to confront and defy a perfect storm,” Mwangi told stakeholders.
Deposits grew by 11 percent to Sh373.1 billion from Sh337.2billion as the number of customers reached 12.1 million.
“The Group now has a liquidity ratio of 54 percent, non-funded income contributes 42 percent, subsidiaries contribute 14 percent of earnings and costs have only grown 7 percent over the past 2 years. Key in management strategy has been innovation and digitization of the Group which is now being rolled out to the subsidiaries consolidating efficiency gains.”
Equitel continued to increase its market share with transaction volumes growing by 11 percent to 251.6 million from 227.4 million Year on Year while the value of transactions grew by 32 percent to Sh480.3 billion up from Sh364.4bn.
The Group’s agency network has over 35,000 agents with transaction volume that grew by 7 percent to 66.2 million from 61.9 million with value growing by 15 percent to Sh528.9 billion from Sh458.3 billion.
Diaspora remittances grew by 132 percent to Sh30 billion from Sh13 billion year on year due to an increased strategic partnership with payment partners including PayPal, Equity Direct, Western Union, MoneyGram, Wave and Swift.