Equity Group’s Assets Up By 18% in First Half of 2019

Equity Groups’ new innovative business strategy termed as 3.0, has resulted to fleshy profits as the Banker got a 10 percent growth in Profit Before Tax and 18 percent in growth of assets during the first half-year of 2019.

The Equity 3.0 innovative business strategy is centered on digitization and virtualization, disruption of delivery channels, transforming the business model and redefining customer’s experience.

The Group registered an 18 percent growth in total assets to reach 638.7 billion shillings up from 542.02 billion shillings registered the same period the previous year. Interest earning assets grew by 15% to 500.5 billion shillings up from 433.9 billion shillings driven by a 17 percent growth in net loan book to 320.9 billion shillings up from 275 billion shillings and a 13 percent growth in government securities to 179.6 billion shillings up from 158.9 billion shillings.

While releasing the half-year results, Dr. James Mwangi, the Group Managing Director and CEO attributed the growth in assets to the successful mobilization of deposits; “Our customer-centric and ecosystem approach to intermediation has given us an opportunity to target our customer’s horizontal and vertical value chains.” He added, “The branch is evolving to an SME advisory center as the majority of our customers move to more convenient self-service digital channels.”

Total liabilities grew by 18 percent to reach 535.9 billion shillings driven by a growth of 16 percent in customer deposits from 393.7 billion shillings to 458.6 billion shillings. The Group has cost-effective funding comprising of 72 percent customer deposits, 17 percent shareholders’ funds and 9 percent long-term borrowings.

Equity’s Total income grew by 10 percent to 36.0 billion shillings up from 32.7 billion shillings driven by growth in Treasury income of 12 percent from 10.3 billion shillings to 11.5 billion shillings. Interest income grew by 9 percent to 27.7 billion shillings up from 25.4 billion shillings while non-funded income registered a 13 percent growth to reach 14.9 billion shillings up from 13.1 billion shillings.

Non-funded income contribution to Total Income was 41.4 percent up from 40.2 percent recorded the previous year driven mainly by a 20 percent growth in Merchant commissions from 876 million to 1.055 billion shillings, Swift and RTGS commissions which grew from 358 million shillings to 413 million shillings, a growth of 15 percent. Diaspora remittance volumes grew by 28 percent from 52.1 billion shillings to 66.5 billion shillings, resulting in Forex trading income growing by 27 percent to 1.9 billion shillings up from 1.5 billion shillings.

On its 2019 Global ranking of the world’s top 1000 banks, the Banker has ranked Equity Group as the 16th Best Bank in the world on return on assets, 32^nd Best Bank in return on capital, 75^th best on soundness measured on capital asset ratio, 844^th largest bank in the world and the fastest-growing large bank in Africa.

Think Business ranked Equity Bank Kenya as the Best Bank overall, Best Tier 1 Bank, Best Bank in SME Banking, Best in Agency Banking, Best Bank in Digital Marketing, Best Bank in Internet Banking, Best Bank in Mobile Banking, Best Commercial bank Microfinance, Best Microfinance Bank in Agriculture & Livestock Financing,  Best Bank in Product Marketing, Best Bank in Corporate Social Responsibility, and runners up best bank in asset finance, Retail Banking, Mortgage finance, and customer satisfaction. Euromoney 2019 awarded Equity Bank Africa’s Best Digital Bank, 2019 while African Banker Awards 2019 recognized Equity bank as the Most Socially Responsible Bank in Africa, 2019.

Equity Bank Kenya is well-positioned to participate in delivering the government of Kenya’s 4 big agenda. During the last 18 months, the bank differentiated itself and repositioned its balance sheet by increasing its liquidity to 61 percent through a 79 percent growth in investment in government securities.