Equity Bank profits soar to Kes13.3Bn

Equity Bank Tuesday posted a profit before tax of Kes 13.3billion for the period ended 30th June 2017, helped by increased revenue from non-interest income and growing regional banking subsidiaries’ contribution to profits before tax.

The performance saw the Group outperform the industry to register a Return on Equity of 22.3 per cent and a Return on Asset of 3.8 per cent despite a 12 per cent reduction in interest income.

The lender’s growth in assets was also attributed to the Bank’s innovative, diversified, and transformative business model against the backdrop of a challenging operating environment.

Equity Group posted a 14 per cent growth in assets to reach Kshs 504.9B up from Kshs 444.4B for the period ended 30th June 2017. This was largely driven by growth in deposits which went up by 13 per cent to Kshs.363.6B up from Kshs 320.8B in the same period last year. This growth comes at a time when the banking industry growth rate has almost flattened out.

Speaking during the Investor Briefing, Equity Bank CEO, Dr. James Mwangi said “The Group’s business continues to demonstrate resilience. 2017 is proving to be an extension of the tough operating environment witnessed in 2016 but as a Group we have already developed and adopted a sustainable business model to cushion the business as well as boost value creation for shareholders. Innovation has proved to be a great enabler in driving growth. We are already registering efficiency gains from digitization.”