Equity Group Holdings has announced that it posted a Ksh. 43.7 billion profit after tax for the year ended December 31 2023.
This is a 5% decline from the Ksh 46.1 billion the company declared in a similar period in 2022. The company attributed the decline to interest expense growing at 53% compared to 30% growth rate of interest income.
The company is however set to pay a Ksh. 15.1 billion dividend, which translates to Ksh. 4 per share as recommended by the board of directors.
Net interest income grew by 21% to Ksh.104.2 billion up from Ksh. 86 billion while non-funded income grew by 30% to Ksh. 75.9 billion up from Ksh 58.3 billion in 2022. Gross trade finance revenue grew by 90% to Ksh. 11 billion from Ksh 5.8 billion in the same period last year. This was driven by a 106% growth of trade finance related lending and 26% growth of trade finance guarantees and off-balance sheet items.
Total costs grew by 52% to Ksh. 128.2 billion up from Ksh. 84.5 billion in 2022. This was driven by a 139% growth in loan loss provision of Ksh. 32.8 billion up from Kshs.13.7 billion to strengthen asset quality buffers. Other operating expenses and staff costs grew by 39% and 28% respectively driven by high inflation and depreciation of the Kenya shilling.
The company completed the acquisition of Cogebanque in Rwanda on 30th November 2023, which was subsequently merged into our existing business adding Ksh. 36.7 billion in assets resulting in a subsidiary with significant scale with total assets of Ksh. 127.7 billion and 18% market share. This positions Equity as the second largest bank in Rwanda.
Under Enterprise Development & Financial Inclusion, Equity Group Foundation (EGF) has trained over 2.4 million youth and women in Financial Education, 517,2467 MSMEs trained in entrepreneurship with over Kshs. 275.3B disbursed to trained youth, women and MSMEs. The pillar works to stimulate job creation and economic growth for individuals and MSMEs through financial literacy, entrepreneurship training, business development services and digital literacy, and has been successful in creating over 1.3 million jobs, under Young Africa Works Program.
In Energy, Environment & Climate Change, the Group continues to make its contribution to combating climate change through conservation and promoting the use of renewable energy. 25.2 million trees have been planted and over 420,243 clean energy products distributed to institutions and households.
To promote food security and support farmers to scale their faming ventures as a pathway to driving entrepreneurship and job creation in the agriculture sector, EGF under its Food & Agriculture pillar has impacted over 3.8 million small scale farmers and supported over 292,362 MSMEs in the agriculture sector. It has delivered these efforts through technology, training, access to markets and access to finance.
Under its Social Protection programmes, EGF has reached 5.4 million individuals with social assistance programs including cash transfers, fee waivers, subsidies and social pensions delivered to vulnerable and marginalized populations. Cumulatively, Ksh. 138.39B has been disbursed via cash transfers under these programs. Capacity building has been availed as a pathway to transition beneficiary cohorts into economic stability and self-reliance.
In its flagship Health program, Equity Afia, 98 medical centers had been established across the country with over 2.1 million patients served as at 31st December 2023. Equity Afia continues in its expansion strategy, with ongoing rollout in DRC, and continues to avail quality, affordable health services across the franchise network.
In Education and Leadership Development, Equity continues to develop and inspire youth into leaders through access to secondary and tertiary education, mentorship, career training and opportunities. The Wings to Fly and Elimu scholarship programs have seen 60,009 brilliant scholars receive comprehensive high school scholarships, while the Equity Leaders Program (ELP) has supported 23,825 University scholars and alumni of the program. The program has seen 891 scholars attend global universities, including 199 who have attended the Ivy Leagues.