Equity Bank posts Sh9.4 bn half year profit

Equity Group Holdings Plc has recorded a drop in its Half Year After Tax Profit by 7.4 percent of Ksh 9.4 Billion from Ks 10.07 billion in June 2016

The group recorded a Pre Tax Profit of KSh 13.29 billion.

“This was in part due to increased revenue from non-interest income and growing regional banking subsidiaries’ contribution to profits before tax. This saw the Group outperform the industry to register a Return on Equity of 22.3 percent and a Return on Asset of 3.8 percent despite a 12 percent reduction in interest income,” said James Mwangi, the Group’s CEO.

Net interest income fell by 15.5 per cent to KSh17.9 billion from KSh21.2 billion in June 2016.

The loan book contracted to KSh265 billion in the period under review, compared to KSh269 billion last year.

Non-interest income went up 19.6 per cent to Sh12.9 billion. caps has had effect on the economy,” Group CEO James Mwangi said at the briefing.

“These results have been achieved during a very challenging period when inflation has been high above the target for the operating period.”

The Group posted a 14 percent growth in assets to reach Kshs 504.9B up from Kshs 444.4B for the period ended 30th June 2017. This was largely driven by growth in deposits which went up by 13 percent to Kshs.363.6B up from Kshs 320.8B in the same period last year.

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