Kenya: Equity Bank’s Half Year Profits Grow by 57 Per Cent

By Staff Writer

NAIROBI---Keeping in its exceptional performance streak, Equity Bank Group has in its half year results maintained an all-round growth in its business with a 57 per cent increase in its profit after tax.

In its half year trading results, despite the economic challenges on the local and international scene, Equity Bank buoyed by increasing deposits increased its profit before tax to Kshs5.90 billion up from Kshs3.88billion posted within the same period last year.

Within the same period, the bank’s after tax profit registered an even higher growth to close at Kshs4.74 billion up from Kshs3.01 billion representing a 57 per cent growth. The bank’s total asset base also registered significant growth posting a 40 per cent growth to close at Kshs171.35 billion up from Kshs122.5 billion.

Within the same period, Equity Bank Group’s loans and advances grew by 43 per cent to close at Kshs97.71 billion up from Kshs68.25 billion and managed to reduce its non-performing loans portfolio by more than 6 per cent.

In a move attributed to the prevailing economic climate and efforts by the Central Bank of Kenya to ensure prudent economic management, the bank recorded a 4 per cent growth on its government securities asset class growing to Kshs27.46 billion up from Kshs26.39 billion.

The bank managed to sign up more than 1.3 million new customers. Effectively, Equity Bank Group’s customer base grew from 4.96 million to 6.3 million representing a 28 per cent growth. The Group’s deposits grew by 48 per cent to Kshs130 billion up from Kshs87.8 billion.

Total operating income for the period grew by 30 per cent to Kshs13.1 billion up from to Kshs10.1 billion in the same period. Total operating expenses on the other hand grew by 17 per cent from Kshs6.3 billion in June 2010 to Kshs7.3 billion in June 2011.

Speaking during the release of the bank’s half year trading results, Equity Bank Group CEO Dr. James Mwangi, expressed optimism that the bank is geared towards maintaining the growth momentum.

“Our success has been driven by prudent risk management practices, increased efficiency and innovation on the delivery channels, products and services front,” Dr. Mwangi explained.

And added: “The cost income ratio has come down from 62 per cent to 56 per cent during the period.”

Reflecting its capital strength and liquidity, Equity Bank Group also maintained a more than 11 per cent and 13 per cent score above the statutory capital and liquidity requirements respectively.