Equity Group Q3 Results: Profit Down 20% at Kshs 19.8 bn

Equity bags 22 accolades including Best Overall Bank in Kenya, Bank with the lowest charges for individuals, Best Bank in Agriculture and Livestock Financing and Best Bank in Mobile Banking among others.

Equity Group CEO and Managing Director Dr. James Mwangi

Equity Group Holdings PLC (EGH) on Thursday reported a 20 percent decline in Profit before Tax at Ksh 19.8 billion for the September quarter of the current fiscal year. 

According to the lender, its loan book grew by 30 percent from Kshs 348.9 billion in September 2019 to Kshs 453.9 billion as at 30th September 2020.

Customer deposits registered a 45 percent growth from Kshs478 billion to Kshs 691 billion driven by 51 percent growth in Uganda, 21 percent growth in Kenya and an additional Kshs130 billion from the acquisition of BCDC in DRC. 

Loans to customers grew by 30 percent driven by 37 percent growth in Uganda, 19 percent growth by Equity Bank Congo, 15 percent growth in Rwanda, 15 percent growth in Kenya, and an additional Kshs 48.5 billion from the acquisition of BCDC in DRC. 

The growth in capital weighted loan book and capital geared customer deposits was on the back of a 27 percent growth in shareholders’ funds following the withdrawal of Equity Group Holdings’ 2019 dividend payout. 

The balance sheet of the Group grew by 38 percent from Kshs 677.1 billion to reach Kshs 934 billion.

Dr. James Mwangi, Group Managing Director and CEO said, “We grew our loan book by 30 percent year on year in order to support our customers who saw opportunities of green shoots and diversification in the COVID-19 environment. Most of the new opportunities we funded were in the manufacturing of PPE’s, logistics, online businesses, agro-processing, fast-moving consumer goods, and agriculture value chains.”