Equity Group Holdings hit a balance sheet of Ksh 1 trillion Wednesday, becoming the first publicly listed lender in Eastern and Central Africa to reach the milestone.
The lender said this was achieved following the acquisition and integration of its business with Banque Commerciale Du Congo (BCDC).
Equity says achieving the trillion-shilling balance sheet lifts the visibility of the financial sector in Eastern Africa significantly to compete favourably with financial institutions in South Africa, West Africa and North Africa for project and development finance.
Speaking when announcing this milestone from Kinshasa Congo where he was witnessing the migration of BCDC to Equity’s core banking platform, Dr. Mwangi said, “We are delighted to witness this milestone that has shattered the psychological barrier of a trillion-shilling balance sheet.”
The bank is also the most capitalized in East and Central Africa with over Ksh. 142 billion giving it a single lending obligor of Ksh. 35 billion.
Equity banking subsidiaries will now be in a position to leverage the Group’s strength to extend large corporate loans across all the countries where Equity operates.
In the year to September, the Group’s net profit declined by 14 per cent with the third-quarter profit after tax to KSh15 billion compared to KSh17.5 billion reported in the corresponding quarter last year.
Loan loss risk provisions grew 11 per cent from KSh1.3 billion to KSh14.3 billion increasing non-performing loan coverage to 86 per cent in anticipation of defaults due to reduced earning among borrowers
Total non-performing loans for the quarter under review grew to KSh45.9 billion from KSh26.5 billion over a similar period last year, representing a 73.2 per cent increase.