Equity Group’s half year results for the period to 30th June 2018 Continue to reflect the Group’s resilience in a difficult but improving operating environment. profit after tax recorded an 18%growth to Kshs.11 billion up from Kshs.9.4 billion for the same period last year. profit before tax grew by 16% to reach Kshs.15.5 billion up from Kshs.13.3 billion.
The Group’s balance sheet registered a growth of 7%to reach Kshs.542 billion up from Kshs.505 billion. This was driven by growth in customer deposits of 9% to reach Kshs.394 billion up from Kshs.363 billion.Regional subsidiaries share of Group asset increased to 26% up from 23% as their assets grew by 16% to reach Kshs.53 billion up from Kshs.46 billion signifying the global lenders confidence in the Group’s risk.
The Group’s deployment of funding was underpinned by investment in government securities which grew by 37%to reach Kshs159 billion up from Kshs.116 billion while net loans to customers grew by 4%to reach Kshs. 275 billion. This reflects the impact of interest capping in Kenya in lending to the private sector. The Group’s balance sheet reflects a liquidity of 59.4% up from 54.4%
Speaking during the release of the half year results, the Group Managing Director &CEO Dr.James Mwangi said “The Group’s agile balance sheet with strong liquidity held in near cash assets strategically positions the equity for opportunistic growth. A dramatically changing environment has seen political risks in south Sudan and Kenya decline with the collaborative peace initiative taking roots. DRC has witnessed decreasing political tensions as preparations for the elections slated for later this year gather momentum’ Kenya’s proposal to repeal interest capping and focus 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 give the stable macro-economic environment.”
Regional subsidiaries grew their profitability by 62% to Kshs.2.8 billion enhancing their contribution to the Group’s profitability to 18% up from 13%.
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 Banker and Kenya’s Best Bank by Euro-money and Think Business for the year 2018.