Equity Group makes Shs40 billion profit in a year

These soaring earnings concretise the Group's position as the most profitable bank in Kenya for a second year in a row.

Its main competitor, KCB, scared up a net profit of Shs34.2 billion over the same period. As a happy consequence of this sterling performance, shareholders took home Shs11.32 billion in the shape of dividends.

The shareholders were paid Shs3 per share, a 50 per cent increase after a two-year freeze on dividend payment due to the impact of Covid-19 on the economy.

Profit making subsidiaries

Equity's subsidiary in Democratic Republic of Congo, EquityBCDC, the bank's second largest subsidiary, recorded a 14.9 per cent Return On Average Equity (ROAE) from 8.8 per cent previous year.

Equity Group headquarters Pulse

ROAE is a financial ratio that measures the profitability of a company in relation to the average shareholders' equity.

EquityBCDC contributed 47 per cent in asset increase at Shs419.8 billion against the Group’s overall of Shs1,304.9 billion.

The subsidiary arose out of the acquisition of majority shareholding of Banque Commerciale du Congo (BCDC) by Equity Bank Congo in July 2020.

Equity currently has 337 branches in Kenya, Uganda, DRC, Tanzania, Rwanda and South Sudan.

Rising returns

The bank's overall net interest for the review period climbed 25 per cent to Shs68.8 billion from Shs55.1 billion on growth on loans and investment in government securities.

Net loans and advances scored a 23 per cent growth from Shs477.8 billion in 2020 to Shs587.8 billion in 2021, which shows businesses are on the financial mend.

Mwangi speaks Pulse

The lender's earnings per share almost doubled from Shs5.20 billion in 2020 to Sh10.40 billion in 2021, a 98 per cent growth.

Total assets grew 29 per cent to Sh1.305 trillion up from 1.015 trillion the previous year. James Mwangi, the Group Managing Director and Group Chief Executive Officer of Equity Group Holdings Plc, said the asset growth is paralleled by a corresponding increase in customer deposits which leaped to Shs959 billion from Shs740.8 billion in 2020.

Equity's total income grew by 21 per cent from Shs92.9 per cent to Shs112.4 per cent in the year ended December 2021.

"We have strengthened our business model to achieve an embedded shared value concept in our twin engine of social and economic aspirations and deliverables," Mwangi said.

He said the bank has upped its social and environmental impact investments in capacity building and enhancement through education, health, and entrepreneurship training.

This, he added, has enabled the bank to further fulfill its mission to champion the socio-economic prosperity of the people of Africa.