Equity Group’s profit after tax grew by 18 percent, sh11 billion up from sh9.4 billion for the same period last year. Profit before tax grew by 16 percent to reach sh15.5 billion up from sh13.3 billion.
The Group’s balance sheet registered a growth of 7 percent to reach sh542 billion up from sh505 billion. This was driven by growth in customer deposits of 9 percent to reach sh394 billion up from sh363 billion.
Speaking during the release of the half year results, the Group Managing Director & CEO Dr. James Mwangi said a dramatically changing environment has seen political risks in South Sudan and Kenya decline with the collaborative peace initiatives taking root. “DRC has witnessed decreasing political tensions as preparations for the elections slated for later this year gather momentum”.
He added that Kenya’s proposal to repeal interest capping and focus on the Big 4 Agenda of stimulating the real economy through investment in manufacturing, affordable low-cost housing, universal affordable health and transformation of agriculture value chain to achieve food security is bound to stimulate significant economic activities given the stable macro-economic environment.
Dr. Mwangi observed that persistent pursuit of innovation has seen the Group digitize cash as well as most of its products and services allowing clients to enjoy convenience and freedom of self-service wherever they are, and at whatever time.
Digitization, use of third party infrastructure and self-service devices have transformed the Group’s banking model from a place you go, to something you do on your devices and as a result transformed the business model from a fixed cost to a variable cost business.
Dr. Mwangi observed that 97 percent of the Group’s transactions are carried out outside the branch with mobile devices processing the lion share of 78 percent of transactions while agents process 12 percent of transactions primarily acting as bridges of converting cash into digital money through deposits and vice-versa through withdrawals.
He added that 93 percent of all successful loan applications are received and processed through mobile lending channels.
The results were released at a time when Equity Bank Group has been granted the sovereign credit rating by Moody’s and named Africa’s Best Bank by the African Banker and Kenya’s Best Bank by Euromoney and Think Business for the year 2018.