Equity Group Q3 2017 Profit Before Tax drops by 3.6pc

By David Indeje / Published October 31, 2017 | 2:04 pm

Equity Group's Q3 2017 Profit Before Tax drops by 3.6pc

Equity Group Holding registered net profit to KSh14.6 billion in the third quarter of 2017 compared to Sh15.1 billion same period last year.

This was attributed to the decline to a general slowdown in the economy and reduction in net interest income that went down by 15 per cent to KSh27.5 billion compared to KSh32.3 billion in the third quarter of 2016.

The Group’s Profit After Tax fell 2.7 percent y/y mainly impacted by 15.0 percent y/y decline in net interest income (NII).

The group’s profit before tax declined to KSh20.7 billion in the third quarter from Sh21.5 billion posted last year in a similar period. The return to equity stood at 22.6 per cent, while return assets.

Non-funded income grew by 28 per cent from KSh16.6 billion in the third quarter of 2016 to KSh21.3 billion in the quarter three of this year.

The bank is keen on driving its digital infrastructure to increase transaction and merchant volumes as well as increasing profit contribution from its regional subsidiaries from the current 10 percent PBT contribution to 40 percent in 3 years.

According to James Mwangi, the group’s innovation and digitisation strategy led to 91 per cent of all transactions moving from fixed cost delivery channels of branches and ATMs to variables cost delivery channels of mobile, internet, mobile App, agency and merchant banking.

About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_IndejeDavid can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

View other posts by David Indeje