Equity Group has announced that it has registered a Ksh. 12 billion net profit for the period ended June 30th 2019. This is an increase from the Ksh. 10.9 billion the financial group registered in the same period in 2018,
The company registered an 18% growth in total assets to reach Kshs.638.7 billion up from Kshs.542.02 billion registered the same period the previous year. Interest earning assets grew by 15% to Ksh. 500.5 billion up from Ksh. 433.9 billion driven by a 17% growth in net loan book to Ksh. 320.9 billion up from Ksh.275 billion and a 13% growth in government securities to Ksh. 179.6 billion up from Ksh. 158.9 billion.
While releasing the half year results, Dr. James Mwangi, the Group Managing Director and CEO attributed the growth in assets to successful mobilization of deposits; “Our customer centric and ecosystem approach to intermediation has given us an opportunity to target our customer’s horizontal and vertical value chains.” He added, “The branch is evolving to an SME advisory center as majority of our customers move to more convenient self-service digital channels.”
Total liabilities grew by 18% to reach Kshs. 535.9 billion driven by a growth of 16% in customer deposits from Ksh. 393.7 billion to Kshs. 458.6 billion. The company’s funding comprised of 72% customer deposits, 17% shareholders’ funds and 9% long-term borrowings.
Total income grew by 10% to Ksh. 36.0 billion up from Ksh. 32.7 billion driven by growth in Treasury income of 12% from Kshs 10.3 billion to Kshs 11.5 billion. Interest income grew by 9% to Kshs.27.7 billion up from Kshs. 25.4 billion while non-funded income registered a 13% growth to reach Ksh. 14.9 billion up from Ksh. 13.1 billion. Non-funded income contribution to Total Income was 41.4% up from 40.2% recorded the previous year driven mainly by a 20% growth in Merchant commissions from Ksh. 876 million to Ksh. 1.055 billion. Swift and RTGS commissions grew from Ksh. 358 million to Ksh. 413 million, a growth of 15%. Diaspora remittance volumes grew by 28% from Ksh. 52.1 billion to Ksh. 66.5 billion, resulting to Forex trading income growing by 27% to Ksh. 1.9 billion up from Ksh. 1.5 billion.
Unrealized capital gains on Mark to Market on government securities grew by 99% to Kshs.2.09 billion up from Kshs 1.05 billion due to declining yields.
Total expenses grew by 11% to Kshs.19.0 billion up from Kshs. 17.2 billion. The Cost to Income ratio was maintained at 50.3%
While the regional subsidiaries contribution to the company’s profits remained at 18%, they increased their total Group asset contribution to 27% up from 26%. Their deposits contribution went up-to 26% up from 25%.
Loans worth Ksh. 20.0 billion were disbursed through the Equitel mobile channel while 100,000 loans (7%) worth Kshs 70.9 billion were disbursed through the branch. 97% of all banking transactions were done outside the branch with Eazzy app transactions growing by 28% to reach 146 million up from 114 million transactions. Equitel transactions grew by 5% from 121 million to 126 million transactions; agent banking transactions grew by 15% from 38 million to 44 million transactions; Eazzy biz transactions grew by 79% from 800,000 to 1.4 million transactions. Eazzy pay transactions grew by 101% from 574,000 to 1.15 million transactions; Merchant transactions grew by 36% to reach 10.7 million up from 7.9 million transactions.