Equity almost doubles its half year profits

Equity Group Holdings Plc has announced a 98 percent growth in half-year profits to Ksh17.9 billion up from Ksh9.1 billion the previous year in what the Group Managing Director and CEO Dr. James Mwangi alluded to resilience and agility.

The Group saw deposits register a 51 percent growth to Ksh820.3 billion up from Ksh543.9 billion, while long-term borrowed funds grew by 78 percent to Ksh102.3 billion up from Ksh57.6 billion.

Net Loans and advances grew by 29 percent to Ksh504.8 billion up from Ksh391.6 billion, while investment in Government securities grew by 46 percent to Ksh315.5 billion up from Ksh216.4 billion resulting in 50 percent growth in Total Assets to Ksh1.12 trillion up from Ksh46.5 billion.

Net non-performing loans declined by Ksh5.4 billion from Ksh28.3 billion to Ksh22.9 billion.

The six countries within which the Group operates have projected strong GDP growth rates; Kenya 7.6 percent, Uganda 6.3 percent, Rwanda 5.7 percent, South Sudan 5.3 percent, DRC 3.8 percent and Tanzania 2.7 percent (IMF 2021 projections) with fairly stable Micro Economic Environment, making the Group well positioned to continue with its offensive and defensive strategy for resilience, agility, recovery and rapid growth.

The regional approach with Kenya now being only 60 percent of the Group balance sheet mitigates national shocks and sovereign risks.

The Group witnessed resilience and recovery of businesses with digital banking transactions growing by 57.6 percent to 606.9 billion up from 385.2 billion transactions same period the previous year. The value of the digital transactions increased 111.3 percent to Ksh2.5 trillion up from Ksh1.16 trillion for a corresponding period the previous year.

The legacy banking whose value of transaction declined by 12 percent to Ksh1.1 trillion down from Ksh1.25 trillion for the previous year to June has registered a growth of 24 percent to Ksh1.37 trillion.

A statement released by the Group affirmed that they are optimistic about the future outlook of business given its continued delivery of convenience from the transformation strategy of the economic engine hand in hand with an enhanced trust capital brought on by shared prosperity programs of the Equity Group Foundation, the Social engine of the Group. The improving operating environment continues to enhance the strategic positioning of strong capital and liquidity buffers and an agile balance sheet.


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