Equity Group has increased its loan provision from Kshs.300 million (previous year’s figure) to Kshs. 3 billion. The Group has released its first quarter results and the decision to make this provision was informed by the need to cushion itself against the uncertainty created by the Covid-19 pandemic. Consequently, the Group’s profit after tax has declined by 14% from Kshs.6.2 billion to Kshs.5.3 billion for the same period last year.
While releasing the results, Dr. James Mwangi, the Group managing director and chief executive officer said: “Covid-19 pandemic has mutated into a global crisis, occasioned by a standstill of economic activity as a result of the global lockdown,” adding that this has led to an unprecedented uncertainty within the global financial systems, prompting the Group to adopt a conservative approach – fortifying its balance sheet and assuring ample liquidity to support its customers.
The Group continues to register impressive progress in transforming itself from the place you go (brick and mortar infrastructure) to something you do on devises (digital banking). During the first quarter, its total assets grew to Kshs. 693.2 billion from Kshs. 605.7 billion. This was driven by a 17% growth in customer deposits from Kshs. 428.5 billion to Kshs. 499.3 billion.
The Group continues to make social and impact investments to support the society and build brand love under a shared prosperity business model. Together with its partners, it has invested $433 million in education scholarships, agriculture transformation, health, energy, leadership development and business services along with capacity development for micro, small and medium enterprises. “ A strong corporate brand, an agile balance sheet, a well segmented and diversified asset portfolio as well as a well balanced risk management policy places the Group strongly to weather market challenges and to support our customers not only to survive but to recover and thrive, hence emerging from this crisis stronger,” said Dr. Mwangi.