Equity Group recorded net profit growth of 98 percent to Ksh39.17 billion from Ksh19.78 billion the previous year.
This rise in profitability was on the back of a by 21 percent rise in total operating income to Ksh113.38 billion from Ksh93.65 billion. This was as a result of a 40 percent growth in interest income on government securities to Ksh 29.45 billion from Ksh20.93 billion and a 22.64 percent growth in interest income on loans to Ksh63.81 billion from Ksh52.03 billion.
On the other hand, provisions for bad debt dropped to Ksh5.84 billion from Ksh26.63 billion in 2020.This subsequently cut operating expenses by 15 percent to Ksh61.5 billion from Ksh72.66 billion. The Group’s net interest income increased by 24.79 percent to Ksh68.81 billion from Ksh55.14 billion while non-interest income grew by Ksh15.76 billion to Ksh44.57 billion during the period under review.
During the period, customer deposits increased by 29 percent to Ksh958.97 billion from Ksh740. 8 billion , while the loan book expanded by 23 percent to Ksh587.77 billion from Ksh477.84 billion.
James Mwangi, Equity Group’s CEO, had this to say, “We have strengthened our business model to achieve an embedded shared value concept in our twin engine of social and economic aspirations and deliverables. We have scaled our social and environmental impact investments in capacity building and enhancement through education, health, and entrepreneurship training. We have strengthened our participation in formalizing and integrating the informal sector in the real economy with the formal supply chains and ecosystems of agriculture, micro, small and medium enterprises.”
The board recommended a final dividend of Ksh3 per share subject to shareholders’ approval after a two-year freeze.