Equity Group Holdings has reported a 79% rise in net profit, from Ksh. 15 billion to Ksh. 26.9 billion, for the period ended September 30th 2021.
There was also a 27% growth in total assets and a 25% growth in total income for Q3. Gross profit also rose by 85% to Ksh. 36.6 billion from Ksh. 19.7 billion in Q3 2020.
The growth has been attributed to a resilient and versatile business model, leadership agility, innovation and diversification capability and strength of strategy.
The Group’s resilience in execution of an offensive and defensive strategy saw regional subsidiaries grow their contribution to deposits to 42% up from 40%, revenue to 37% up from 30% and gross profit to 26% up from 21%. Agility saw the 27% growth in total funding deployed into public and private sectors resulting in 36% growth in lending.
During the period under review, the interest income also grew by 29% to Ksh. 67 billion while total assets for the group grew by 27% to Ksh. 1.2 billion from Ksh. 933.9 billion recorded in a similar period last year.
“The interest expenses have grown slightly higher because of the long-term funds from development banks as borrowed funds have grown from Ksh. 105 billion from Ksh. 70 billion. This is because we needed to lengthen the maturity of funding portfolio to enable businesses to be able to take long-term loans,” he added.
Likewise, the group’s deposits grew by 27% to Ksh. 875.7 billion from Ksh. 691 billion and net loans grew by 23% to Ksh. 559 billion from Ksh. 453.9 billion.
Higher quality non funded income grew faster at 29% to Ksh. 31.4 billion up from Ksh. 24.3 billion than net interest income which recorded a 23% growth to Ksh. 48.5 billion up from Ksh. 39.3 billion.
Speaking during the group’s Investor Briefing session, James Mwangi, Equity Group’s managing director Dr. James Mwangi revealed that the Group and its partners had invested Ksh. 57 billion (USD 513 million) in social investment programs. This includes initiatives in education, health, enterprise development, food and agriculture, social protection and energy and environment
Through the investment, he said the group hoped to catalyze and crowd-in investment flows and capacity building in the East African region
Mwangi further noted that 74% of customers have embraced digital payment systems over cash payments, promoting a cashless economy.
Overall, the group recorded the highest growth of 408% in transaction count and a 392% growth in transaction value during the Q3 reporting period.
Cost to Assets Ratio Cost to income Ratio
|Subsidiary Q32020 Q32021 Q32020 Q32021|
|EB Kenya 7.6% 3.7% 42% 39.8%|
|EB Uganda 9.2% 6.4% 57.5% 51.1%|
|EB Rwanda 6.3% 4.3% 49.0% 39.8%|