Equity posts Ksh.33.4 billion nine months profit

Equity posts Ksh.33.4 billion nine months profit

Lender Equity Group has posted a 27 per cent growth in net profit to Ksh.33.4 billion across nine months of operations to September.

The higher profitability from Ksh.26.3 billion last year is largely attributable to higher income in the period with the Group's total operating income hitting a Ksh.100.9 billion high.

The growth in income is also due to a 31 per cent growth in non-interest funded income (NFI) to Ksh.41.1 billion propped largely by income from trade finance.

At the same time, Equity's interest income has grown by 26 per cent to Ksh.84.2 billion flanked by a 21 per cent loan book growth to Ksh.673.9 billion.

Equity Group Managing Director Dr. James Mwangi has credited the bank's growth to its ability to convert customer deposits into loans to drive revenues through new lending.

During the quarter, Equity deposits crossed the Ksh.1 trillion mark to settle at Ksh.1.007 trillion.

"The answer is clear. This is a liability led growth with the customers making the decision to hand us their deposits which we intermediate in the market in the form of loans," Mwangi said.

"We have gone back to the market and we want to stimulate the market. We see ourselves significantly unpacking cash held in government securities."

Equity Group now has an asset base of Ksh.1.364 trillion after growing by 15 per cent in the quarter to September.
The growth in balance sheet has been achieved even as the bank maintains operational efficiencies.

Equity closed the quarter with a non-performing ratio of nine per cent against the industry's average of 13.7 per cent and a cost to income ratio (CIR) of 48.1 per cent.

Dr. James Mwangi says the bank has laid the foundation for even greater growth into the medium term.

"It has taken us years to achieve a Ksh.1 trillion asset base. We see ourselves reaching our second trillion in five years," he added.

Equity Group has not declared an interim dividend for the period but is expected to make a lump sum payment to shareholders after the close of the financial year in December. 

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