Equity Group has posted a 12% rise in profitability a Ksh. 48.8 Billion for the full year 2024, up from the Ksh. 43.7 Billion realized in a similar period last year.
This rise in profitability was largely due to a 3.7% rise in the net interest income to Ksh. 108 Billion up from Ksh. 104 Billion. Interest income from Loans rose marginally to hit Ksh. 107 Billion up from Ksh. 102 Billion in 2023. Interest from Government securities also rose marginally to Ksh. 56 Billion up from Ksh. 51 Billion in 2023.
On the other hand operating expenses rose marginally by 2.4% to Ksh. 133 Billion. This was due to a 43% decline in the loan loss provision to Ksh. 20 Billion. The bank indicated that this drop was due to the Group’s defensive and prudent approach to risk management which was undertaken due to the global operating environment characterized by unprecedented geopolitical shifts.
The Group’s total deposits grew to reach Kshs 1.4 trillion with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise.
The Group’s liquidity position remains strong, with cash and cash equivalents rising by 19% to Kshs 345 billion, while investment securities grew to Kshs 512 billion, contributing to an overall liquidity ratio of 57%.
Dr. James Mwangi, Equity Group Holdings Plc Managing Director, and CEO said, “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth. The Group’s liquidity and capital position remains strong, positioning us to better support our customers in the years ahead.”
Following the good results, the Equity Group baord proposed a dividend of Kshs 4.25 per share.