Equity Group Holdings has announced that it has recorded a strong Ksh. 16 billion profit after tax for the period ended 31st March 2024. This is a 25% growth to the Ksh. 12.8 billion the company reported in a similar period last year.
This comes on the back of a 5% decline in profit after tax for the year ended 31st December 2023 which was Ksh. 43.7 billion.
Net interest income grew by 28% to 27.8 billion from Ksh. 21.6 billion in Q1 2023. Non-funded income grew by 21% to Ksh. 21.8 billon from Ksh. 18.1 billion in the previous period. Non-funded income contributed 43.9% of the total income. Treasury contributed 30% of all gross income of Ksh. 64.8 billion at Kshs.19.6 billion while Trade Finance revenue grew at 22% to Kshs. 3.1 billion.
On the other hand, total costs grew by 28% to Ksh. 29.2 billion from 22.8 billion in a similar period last year. This was because of an 84% increases in loan loss provision to Ksh. 5.6 billion, and a 18% increase in staff costs to Ksh. 7.9 billion.
While releasing the results Dr James Mwangi, Equity Group Managing Director and CEO said, “The recovery momentum is strong after accepting and adapting to the new normal of operating in an environment characterized by Volatility, Uncertainty, Complexity and Ambiguity – VUCA. An environment defined by high inflation, interest rates and volatile currency exchange rates.”
Assets in the Equity Group grew by 10% to Ksh. 1.69 trillion from Ksh. 1.53 trillion in the previous period. Group liquidity stood at 52.1% with a balance sheet of Kshs.1.69 trillion split between a loan book of Ksh. 779 billion and liquid assets of Ksh. 752 billion. the liquid assets included cash and cash equivalent of Ksh. 279 billion and investment in government securities of Ksh. 473 billion.
Liabilities include Ksh. 1.236 trillion of deposits from 20 million customers plus long-term funding of Ksh. 343 billion. The long term funding includes debt of Ksh. 125 billion and Ksh. 219 billion of share capital and shareholders’ funds.
The company has diversified its loan portfolio in pursuit of financial inclusion. It is spread 40% among corporates and large enterprises, 26% among micro, small and medium enterprises, 28% retail and consumer and 6% among public service institutions.
The new life insurance business took a strong start with growth in its second year of operation. Profit after tax grew 106% to Ksh.321 million while total insurance assets grew by 288% to close at Ksh. 20.8 billion. 2024 signaled a strong start with growth of Insurance total assets by 288% to Ksh. 20.8 billion up from Ksh. 5.4 billion while net insurance and investment revenue grew 91% to Ksh. 342 million up from Ksh. 179 million. The insurance business reached 5.5 million customers with issued 11.1 million policies within a period of 2 years by the end of March 2024.