Equity Group Posts 12.5% Profit Growth Amidst Economic Headwinds

Equity Group, Kenya’s largest bank by market capitalization, has announced a robust financial performance for the first half of 2024, reporting a 12.5% increase in net profit to Kshs. 29.6 billion. This growth comes despite a challenging economic climate characterized by high interest rates and exchange rate volatility.

Key Highlights:

• Profit Growth: 12.5% increase in net profit to Kshs. 29.6 billion.
• Strong Liquidity: Cash and cash equivalents up 55% to Kshs. 341 billion.
• Deposit Growth: 11% year-on-year increase in deposits to Kshs. 1.3 trillion.
• Regional Expansion: Subsidiaries contribute over 50% of pre-tax profit.
• Asset Quality: NPL coverage ratio maintained at 70% with an NPL ratio of 12.9%.

The bank’s regional subsidiaries continued to be a key driver of performance, contributing to over 50% of the group’s pre-tax profit. Equity Group has also demonstrated resilience through a strong liquidity position, with cash and cash equivalents growing by 55% to Kshs. 341 billion.

Dr. James Mwangi, Equity Group Holdings Managing Director, and Chief Executive Officer, expressed optimism about the Group’s ability to support customers as the economy improves, citing the strong liquidity position and recent reduction in Central Bank Reference rates.

While the Group has navigated the challenging economic environment successfully, it has also incurred higher expenses due to inflation and investments in infrastructure modernization.

Equity Group’s consistent growth and financial resilience position it as a leading player in the African banking industry.