Equity Group Holdings has posted a 25.1 percent growth in net profit for the first three months to March to Sh15.3 billion from Sh12.3 billion in a similar period a year earlier.
The profit rise is attributable to higher income in the period as the bank grew both its interest and non-funded income lines.
Total operating income rose to Sh50 billion in the period from Sh40 billion as interest income rose the fastest at 32.7 percent to Sh43 billion.
The growth in interest income is partly attributable to higher income from loans and advances to customers, which hit Sh27.3 billion from Sh20. 7 billion previously.
Equity Group has equally grown its non-funded income by 21.3 percent to Sh22.2 billion from Sh18. 3 billion largely as a factor of higher fees and commissions, which offset a decline in foreign exchange trading income.
The bank’s total operating expenses went up by 28.1 percent in the period to Sh29.6 billion from Sh23.1 billion as loan provision costs soared by 76.4 percent to Sh6 billion from Sh3.4 billion.
The higher provision costs are amid a 50 percent rise in gross non-performing loans to Sh120.4 billion from Sh80.2 billion.
Equity Group asset base has expanded to Sh1.685 trillion at the end of the quarter with net loans and advances to customers rising by three percent to Sh779.2 billion from Sh756.3 billion
The bank’s customer deposits have meanwhile grown by 11.2 percent to Sh1.236 trillion.
Equity Group CEO James Mwangi has attributed the performance to its continued execution of strategy that has included business diversification and regional expansion.
“The numbers speak for themselves. It’s a very strong recovery for the group over the last seven years amid multiple shocks including interest rate caps, the pandemic and geopolitical risks,” he said.
