Businesses & Financial News

Equity bank records 24 per cent dip in profits

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By Steve Umidha

Equity Group has announced a 24 per cent dip in profit to register Sh9.1Billion for the half year period ending June 30, this compared to Sh12Billion the lender announced in a similar period last year.

The Group’s total operating costs rose by 44 per cent to Sh26.7 Billion up from Sh18.6 billion which the bank attributed to a 15-foldncrease in loan loss provision which jumped to Sh7.7 billion up from Sh500 million brought by adverse impact of COVID-19 pandemic.

“Despite NPLs showing a minimal decline from 10.9 per cent to 10.7 per cent quarter on quarter basis and stabilizing below the 13.1 per cent industry average, prudence dictated that we adopt a conservative humble approach in recognizing the risk of uncertainty Covid-19 has imposed on the operating environment,” said James Mwangi, the Bank’s Chief executive.

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