Equity Bank regional subsidiaries continued to post impressive financial performance with the five banking subsidiaries posting double digit growth contributing a profit after tax of 18 per cent up from 15 per cent last year.
During the period, Equity Group subsidiaries registered a three per cent growth in deposits compared to 2018, and cumulatively accounted for 27 per cent of total Group deposits which stood at Sh141.4 billion by end of the financial year.
Total Group assets during the period stood at sh673.7 billion of which the subsidiaries contributed 27 per cent at sh190.9 billion. Equity subsidiary in the DRC was the major contributor of all subsidiaries assets contribution, ending the year at sh80.1 billion, followed by Equity Uganda at sh45 billion. Rwanda and Tanzania were the other major contributors, closing the financial year at sh30.3 billion and sh23. 9 billion.
The Bank noted that the retail banking industry across East Africa is undergoing momentous changes, and all evidence hints at a regional industry on the cusp of exponential growth. According to PWC East Africa Banking Survey 2019, that featured Chief executives, Chief financial officers, and other top executives in the sector, social and behavioral change, and technology cumulatively accounted for 55 percent of factors they think will shape the banking sector in the next 5-10 years.
The macroeconomic and operating environment across the region played a key role in the bank’s performance across the region, with many countries displaying an optimistic economic outlook. In Uganda, increased infrastructure investment, growing foreign direct investments in the oil and mining sub-sectors are expected to spur significant economic growth for the land locked country.
In Rwanda, there is much optimism with economic projections hinting at an 8 per cent economic growth in 2020, supported by exports growth, public investments and policy reforms aimed at achieving the long term development goals. In Tanzania, the growth is expected to be spearheaded by robust private sector consumption and investment in the mining and construction industries.
Equity is looking to strengthen its position across the region by transforming the business through digitization, to make the brand simpler and bolder, centered around the customer needs.