Equity Group Holding has recorded a 7.8% increase in its half-year profit after tax, which rose to Sh26.3 billion from Sh24.4 billion in the same period in 2022.
The lender attributed the growth to its diversified business model, which saw its revenue increase across various segments.
“Our strategic pursuit has resiliently positioned us to weather the macro-economic headwinds and turbulence,” said James Mwangi, the Group’s Chief Executive Officer.
He added that the regional expansion and business diversification had reduced the reliance on the Kenyan banking subsidiary, which contributed 55% of total assets and 55% of profit before tax.
The other subsidiaries, mainly insurance and the DRC business, contributed 46% of total assets and 45% of profit before tax.
The lender’s net loans to customers grew by 26% to Sh382.5 billion, while its investments in government securities increased by 33% to Sh287.6 billion.
The non-funded income also registered a significant growth of 42%, contributing to 40% of the total income.
The growth was driven by trade finance revenue, which increased by 117%, foreign exchange income, which rose by 68%, and diaspora remittances, which grew by 146%.
The lender’s customer deposits increased by 21% to Sh740.8 billion, while its total assets expanded by 23% to Sh1.1 trillion.
“We are confident Equity Group is strategically positioned as a regional systemic bank among the top 3 in 5 of its 6 operating countries to support further integration and increased cross-border trade under the African Continental Free Trade Area while supporting the region to remain the fastest growing common market in the world to offer the opportunity for long term sustained value creation” added Dr Mwangi.
