NAIROBI, Kenya, Nov 12 – Equity Group reported a 13 percent increase in net profit to Sh40.9 billion for Q3, driven by strong performance from its regional subsidiaries and the local unit.
Regional businesses contributed 51 percent of pre-tax profit and 48 percent of total assets, which rose to Sh1.7 trillion by September 30, 2024.
The Group’s diversification strategy has paid off, with its Kenyan operations now accounting for 47 percent of revenue, down from 52 percent previously.
In the Democratic Republic of the Congo (DRC) and Rwanda, subsidiary growth has led to regional loans comprising 47 percent of total loans, while contributing an equal share of profit after tax.
Interest income saw a 13 percent increase, reaching Sh125.9 billion, despite inflation and interest rate pressures that led to an 18% rise in interest expenses to Sh45.3 billion.
Non-funded income also rose by Sh2 billion, supporting an 8 percent growth in total income to Sh138.9 billion.
James Mwangi, Group CEO, expressed optimism about the Group’s strong liquidity position, citing improved support for customers in key markets where economies are showing signs of recovery.
“With this liquidity, we optimized our balance sheet, cutting Sh137.6 billion in high-cost long-term debt,” Mwangi noted.
