Equity Group Holdings Plc released first quarter results, with its loan loss provision increasing tenfold to sh3 billion from sh300 million the previous year.
This led to a decline of profit after tax by 14 per cent from sh6.2 billion to sh5.3 billion for the same period last year.
While releasing the results Dr. James Mwangi, Group Managing Director and CEO said that the global COVID-19 pandemic has mutated into a global economic crisis, occasioned by a sudden standstill of economic activity as a result of the global lockdown. “This has introduced unprecedented uncertainty within the global financial systems prompting us to adopt a conservative approach – fortifying our balance sheet and assuring ample liquidity to support our customers.”
The Group continued to enjoy robust growth with total assets registering a 14 per cent year on year growth to sh693.2 billion from sh605.7 billion driven by a 17 per cent growth in customer deposits to sh499.3 billion from sh428.5 billion.
The Group continues to register impressive progress in transforming itself from the place you go to something you do on devices. The brick and mortar infrastructure of branches and ATMs processed only 6 per cent of the Group’s banking transactions, while mobile and internet banking processed 79 per cent of all transactions, with agents and merchants processing 15 per cent of transactions making the Group an increasingly virtual digital financial service provider.
Dr. Mwangi added that Equity has restructured customers’ loans of up to sh92 billion for up to three years as an economic relief effort to the COVID-19 crisis. “We will walk with our clients through this crisis and will give every client a chance to turn the crisis into an opportunity to thrive. Equity Group will deploy its capital strength, balance sheet agility and liquidity to support a long-term view,” he said.
To date, the Group together with its development partners have invested US $433 million in education scholarships, agriculture transformation, health, energy, leadership development and business services along with capacity development for micro, small and medium enterprises and entrepreneurs.