Equity group registers  25% growth on  Net interest income to Ksh 68.8 bn up from Ksh 55.1 bn

Equity group registers 25% growth on Net interest income to Ksh 68.8 bn up from Ksh 55.1 bn

BY JOAN WANJIKU,NAIROBI,22ND MARCH 2022-Lender Equity Group has nearly doubled its 2021 full year profit after posting a 98 per cent rise in net profit for the year to Ksh.39.2 billion from Ksh.19.8 billion previously.

The rise in the bank’s profitability is attributable to higher income with total operating income rising by 21 per cent to Ksh.113.4 billion from Ksh.93.7 billion.

Growth in operating income has been supported by a 24.9 per cent in net interest income to Ksh.68.8 billion from Ksh.55.1 billion a year prior.

Non-interest funded income (NFI) has meanwhile grown by 15.8 per cent to Ksh.44.6 billion from Ksh.38.5 billion in 2020.

At the same time, Equity has shed its overall costs by 15.4 per cent to Ksh.61.5 billion from Ksh.72.7 billion.

This includes a 78.2 per cent trim on loan-loss provision costs with the cover for loan defaults falling to Ksh.5.8 billion from Ksh.26.6 billion.

The growth in profitability for Equity Group comes as its asset base tops Ksh.1.3 trillion from a flat Ksh.1 trillion a year ago on the back of its acquisition of DRC’s Banque Commerciale Du Congo (BCDC).

The Group’s balance sheet comprises Ksh.587.8 billion in net loans and advances to customers and Ksh.959 billion in customer deposits.

According to Equity Group Managing Director James Mwangi, the set of results mirror the bank’s resilience amidst a volatile operating environment over the past two years.

“Our greatest lesson has been not running off amidst uncertainty. COVID or no COVID, we were never going to deviate from the true North. We have realized that the purpose is profitability,” he said.

Subsequent to the rise in earnings. Equity has resumed dividend payouts after a two year hiatus with its board of directors recommending a record shareholder pay out of Ksh.3 per share to be paid on or before June 30.

The total dividend payout tallies to a combined Ksh.11.3 billion, a figure just under 30 per cent of its full year earnings.

Equity Group earnings per share now stands at Ksh.10.38 from Ksh.5.24 in December 2020.

The Group now hopes to return to a pre-interest cap rate of growth as regional economies unwind from the COVID-19 strain.

“When we look at the future, we are confident that our new strategy will take us back to our previous path where we posted a 10 fold growth on all parameters every five years,” Dr. James Mwangi added.

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