Equity Bank reported an 11 percent drop in net profit for the year 2020 to Ksh.20.1 billion.
The profit dip was recorded against the backdrop of a 402 percent increase in its loan loss provision to Ksh.26.6 billion.
Equity restructured Ksh.171 billion worth of loans for customers whose repayment capacity was adversely impacted by the coronavirus pandemic.
This represented 32 percent of the bank’s entire gross loan book of Ksh.530 billion.
By the end of December last year, the lender said Ksh.40 billion of the restructured loans had resumed repayments and normalized.
The bank further waived mobile charges of Ksh.1.2 billion to help sensitize clients to adopt mobile, digital, and online banking, in compliance with health protocols of reduced mobility, minimized interactions, promoting hygiene, and maintaining social distancing.
With the development of COVID-19 vaccines and the world embracing vaccination, the Group is optimistic that the health crisis caused by COVD-19 will in time be brought under control.
Deployment of the 51 percent growth of funding enabled loans to customers to grow by 30 percent to Ksh.478 billion up from Ksh.366 billion.
Net interest income grew by 23 percent to Ksh.55 billion up from Ksh.45 billion driven by a 30 percent growth on customer loan book and 26 percent growth in investment in Government securities.
Non-funded income grew at 27 percent to reach Ksh.38 billion up from Ksh.30 billion to contribute 41 percent of the total income.
The Group Board of Directors has not recommended a dividend for the year ended December 31, 2020, opting to prudently devote internally generated funds to the Group’s successful offensive and defensive strategy that has seen the balance sheet expand by 51 percent.