Equity Group’s profit up 18pc

Nairobi. Equity Bank announced earlier this week that its half year profit grew by 18 per cent to Ksh14 billion (about Sh284 billion), sending smiles on the faces of its shareholders.

During a similar period last year, the profit stood at Sh12.1 billion (about Sh242 billion) in its 2016 half year financial results.

Speaking in Nairobi earlier this week, the chief executive officer, Dr James Mwangi attributed the rise to the group’s decision to embrace digitization ad re-defining of banking services during the period.

“Successful execution of an innovative business strategy code named Equity 3.0 centered on digitization, disruption of delivery channels, transforming the business model and redefining customers banking services and products access experience delivers 18 per cent profit before and after tax growth,” Dr Mwangi said. He added that the convenience and ease of accessing credit and loans through the Equitel mobile channel saw the number of loans disbursed increase by 308 per cent to 4,327,999 up from 1,061,000.

Of the number, 3,557,913 loans worth Ksh20.8 billion (about Sh416 billion) were disbursed through the Equitel mobile channel.

The growth in Equitel mobile loan disbursements account for 82 per cent of all loan disbursements compared to 18 per cent of over the counter branch loan disbursements.

Equity Bank, which also operates in Tanzania and in other countries within East Africa, saw its profit after tax rising to Sh10.1 billion (about Sh202 billion) from Ksh8.6 billion (about Sh172 billion).

According to Dr Mwangi, the group will roll out other innovative products focusing on small and medium enterprises to expand its banking services in the East African region.

Equity Bank also registered growths in a number of its performance indicators, with interest earning assets growing by 19 per cent to Ksh342 billion (about Sh6.84 trillion) from Ksh287.4 billion (about Sh5.748 trillion). (Agencies)