Equity Group shareholders have approved the establishment of a banking holding company to consolidate the activities of its banking subsidiaries across its markets in East and Central Africa.
The lender held its 20th Annual General Meeting with the shareholders voting in favour of all proposals by the board of directors.
The Group operates banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo (DRC).
Equity Group will now operate under four groups, the Banking Group, the Insurance Group, the Technology Group and the Foundation Group.
Shareholders also gave the green light to establish a health insurance subsidiary in Kenya. This subsidiary will operate under Equity Group Insurance Holdings Limited, which already offers life and general insurance.
“We are now a systemic bank in East Africa, a region that has emerged among the fastest-growing regions in the world. Our outlook remains positive, despite the challenging macroeconomic environment, Equity has adapted with agility and responsiveness to mitigate the challenging market conditions across the region,” Group managing director and CEO, James Mwangi says.
“Overall, we have made good strides in pursuing the Plan. As the Africa Recovery and Resilience Plan (ARRP) is strongly hinged on unlocking the primary sector in Africa, a major concern for the Group in the year revolved around nature and climate change,” he added.
Ratification of Cogebanque Acquisition
The acquisition of Cogebanque in Rwanda was ratified, solidifying Equity Bank Rwanda’s position as the second-largest bank in the Rwandan market with an 18% market share.
During the AGM, shareholders approved a dividend payout of Sh15.1 billion, marking the second consecutive year of record dividends. This reflects a payout ratio of 36% of the bank’s profits.
Subsequently, the creation of an Equity Group Employee Share Ownership Programme (EGH ESOP) was approved, allocating 5% of the company’s share capital to employees. This aims to attract and retain talent by making Equity Group a more attractive employer.
“The staff are the most valuable assets we have, and they are the ones that deliver the promise to our customer and the ESOP will attract and retain the right talent,” Equity Group chairman Isaac Macharia noted.