Equity CEO James Mwangi speaks during the investor briefing.
Equity Group has reported a 12% pretax profit growth for the first half of this year to Ksh.12.1 billion, up from Ksh10.8 billion the same period last year.
Group CEO and Managing Director Dr James Mwangi attributed the growth to stable regional business, diversification of revenue sources and strategic partnerships through the Equity 3.0 growth strategy. “The group is pursuing clear strategies to become one of Africa’s most respected diversified Groups,” Dr. Mwangi said.
The Group has also maintained the growth streak to close the year with Ksh400.9 billion worth of assets up from last year’s 302.9 billion shillings. Growth in deposits was coupled by the steady rise of the loan book representing a 27% growth to Ksh236.8 billion from Ksh186.5 billion amidst a stable NPL portfolio currently at 4.4%.
The Group’s ongoing efforts to diversify its revenue streams also received a boost this half year, with its total income growing 18% to close at Ksh26.3 billion up from Ksh22.3 billion registered in the same period last year.
The Group’s strategic growth initiatives continued to fuel its revenue climb as evidenced by rising income from its payment processing and merchant business which grew its commission income by 57% while forex income increased by 76% during the same period largely aided by growing diaspora remittances and foreign currency denominated funding programmes to regional SME’s.
Dr Mwangi said mobile banking currently stands at 9.3 million shillings. The service, known as Equitel, was launched formally last month and has more than one million users. Equity operates in Uganda, Tanzania, Rwanda and South Sudan. It is entering the Democratic Republic of Congo through an acquisition.
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