•The group’s assets have grown to Sh1.75 trillion up from Sh1.64 trillion same period last year.
•Customer deposits went up to Sh1.29 trillion from Sh1.17 trillion in June 2023.
Image: HANDOUT
Regional lender-Equity Group Holdings has posted a Sh29.6 billion net profit for the half-year ended June 2024, buoyed by among others, strong interest income mainly from loans and government securities.
This, even as its loan book shrunk to Sh791.1 billion compared to Sh817.2 billion same period last year in the wake of high interest rates which cut the borrowing appetite in the market.
Non-performing loans during the period under review increased to Sh97.9 billion, compared to Sh79.1 billion same period last year, fueled by the tough microeconomic environment witnessed not only in Kenya, but the region where the lender operates in.
Most NPLs were in corporate, MSMEs and the retail space.
Last week’s decision by the Central Bank of Kenya’s Monetary Policy Committee to cut its base interest rate by 25 basis points to 12.75 per cent, from 13 per cent, is however expected to stimulate borrowing in the second half of the year, Equity Group managing director and CEO James Mwangi noted on Monday.
“Customers should expect a reduction on interest rates,” Mwangi further noted during the lender’s investor briefing held in Nairobi.
During the half year, the group’s interest income grew to Sh84.8 billion compared to Sh69.8 billion same period last year, as income from loans and advances went up to Sh53.5 billion, compared to Sh44.8 billion last year.
Income from government securities increased to Sh28.3 billion compared to Sh22.7 billion in half one 2023.
Total operating income went up to Sh97.1 billion compared to Sh82.8 billion last year.
The group’s assets have equally grown to Sh1.75 trillion up from Sh1.64 trillion same period last year, as the lender continued to cement its position as a leading bank in the region, amid business diversification which includes inroads into the insurance and health sectors.
Customer deposits went up to Sh1.29 trillion from Sh1.17 trillion in June 2023.
The Nairobi Securities Exchange listed lender continued to enjoy the fruits of digital investment as 93 per cent of transactions were outside the brick and mortar, where digital transactions accounted for 84 per cent of total transactions while agency banking accounted for 9.2 per cent.