Equity Bank’s digital products are driving its performance against a challenging environment both negatively influenced by drought, political temperatures of elections and interest rate cap.
Equity Group’s Managing Director & CEO, Dr. James Mwangi said that the decision to focus on innovation and digitization has been received well by customers who are now increasingly using mobile and online platforms to access banking services over physical branches
Equitel posted a strong performance according to the just released financial results for the third quarter of 2017. It increased its market share in the value of mobile money transactions to 26 per cent from 22 per cent, while its market share of mobile commerce rose to 33 per cent from 30 per cent in the preceding quarter.
“We have seen 91 per cent of all bank transactions are now happening on self-service platforms. Through these platforms, we have compressed distance and time for our customers,” said Dr. Mwangi while releasing the 2017 third quarter results.
Equitel processed transactions worth sh353.6 billion in the third quarter of 2017, representing a 41 per cent increase from sh250.8 billion that was processed over a similar quarter a year earlier. The number of transactions processed increased by 31 per cent to stand at 197.1 million from 150.8 million over the same period.
Equity Bank’s internet banking platform on the other hand processed 1.3 million transactions worth sh96.9 billion over the quarter, up from 0.1 million transactions worth sh5.4 billion recorded in a similar period in 2016. This represented a phenomenal 2003 per cent growth.
Similarly, Equity Bank’s mobile app dubbed EazzyBanking App processed 54.5 million transactions worth sh51.9 billion as at September 30 2017.
Overall, the Group’s Non-Funded Income grew by 28 per cent to sh21.3 billion from sh16.6 billion. This is despite the reduction in interest income over the quarter. Trade finance, forex, merchant banking and agency commission were other sources that boosted non-funded income.
The Group’s Profit Before Tax for the 9 months in 2017 was sh20.7 billion while Profit After Tax was sh14.6 billion.