Equity Group’s 2021 profit up 98% on increased customer support
Equity Group profit surged by 98 percent to Ksh.39.17 for the full year ended December 31, 2021 compared to a similar period the previous year when the group posted Ksh.19.78 billion.
The strong performance was driven by an increase in the net interest income which gained 25 percent to Ksh.68.8 billion up from Ksh.55.1 billion.
Expansion in its loan book also contributed to the lender’s profitability rising to Ksh.587.8 billion from Ksh.394.1 billion.
Announcing the results, Equity Group Managing Director and Chief Executive Dr.James Mwangi noted the performance came against a backdrop of uncertainty, saying the group focused on supporting customers.
“When COVID- 19 struck, Equity Group sought its true north, its purpose and commitment to support its members. The Board and Management decided to focus on saving lives and livelihoods, giving dignity, and expanding opportunities for wealth creation while keeping the lights of the economies on,” said Dr. Mwangi.
This in the process increased and accelerated customer deposits which gained 29 percent to Ksh.959 billion from Ksh.740 billion.
At the same time, Equity reported 134 percent in its profit before tax to Ksh.51.9 billion up from Ksh.22.2 billion the previous year.
The group’s total assets grew by 29 percent to Ksh.1.305 trillion up from Ksh.1.015 trillion driven by a corresponding 29 percent growth in customer deposits to Ksh.959 billion up from Ksh.740.8 billion resulting in excess cash being deployed in low yielding government securities at 9.6 percent while cost to income remained fairly constant at 49.1 percent up from 48.5 percent
In the period under review, the bank’s total income grew by 21 percent to Ksh.112.4 billion up from Ksh.92.9 billion in 2020.
In addition, total Non-Performing Loans declined to Ksh.44.5 billion down from Ksh.50.6 billion. while non-performing loan coverage increased to 98 percent up from 89 percent in absolute terms.
To boost its regional expansion into Rwanda, Uganda, DRC and Tanzania, the bank has heightened its operations in Food and Agriculture and started establishing private-public partnerships jointly with various development partners to drive the growth of the sector.
The Group further recommended a record dividend pay-out of Ks.3 per share totaling Ksh.11.3 billion which is a 50 percent jump from previous dividend pay-out after earnings per share grew by 98 percent to Ksh.10.40 up from Ksh.5.20 the previous year.