Equity Group Holdings Ltd. recorded strong growth despite economic headwinds for its 2023 full-year financial results.
The Group’s net profit declined by 6.48% to Ksh 43.7 billion from Ksh 46.1 billion in 2022 after the lender doubled its bad loan provision.
Despite a profit decline, the Group demonstrated resilience in a challenging economic environment marked by high inflation, interest rates, and currency volatility.
“Despite the rise in the cost of funding, we did not adjust the base rate on personal loans equivalent to 32% of our loan book, effectively keeping them at 13%. This means that our interest income grew at nearly half the pace of interest expenses,” said The bank’s chief executive officer, Dr James Mwangi
Its Net Interest Income increased by 21% to Ksh 104.2 billion from Ksh 86 billion in 2022.
The Group proposed a record dividend of Ksh 15.1 billion, marking the second consecutive year of such a payout.
Equity proposes a record divided payout of Ksh. 4. Per share, a 36% payout of the Ksh 43.7 billion PAT.#Equity2023FYResults pic.twitter.com/emT2gqm2yX
— Equity Bank Kenya (@KeEquityBank) March 27, 2024
Financial Highlights
- Profit After Tax: Ksh 43.7 billion, down 5% from Ksh 46.1 billion in 2022.
- Net Interest Income: Ksh 104.2 billion, up 21% from Ksh 86 billion in 2022.
- Non-Funded Income: Ksh 75.9 billion, up 30% from Ksh 58.3 billion in 2022.
- Customer Deposits: Ksh 1.358 trillion, up 29% from Ksh 1.052 trillion in 2022.
- Net Loans: Ksh 887.4 billion, up 26% from Ksh 706.6 billion in 2022.
- Shareholders’ Funds: Ksh 218.1 billion, up 20% from Ksh 182.2 billion in 2022.
“The Group has demonstrated resilience after multiple shocks… During this turbulent period, the number of customers has grown to 19.6 million… Total assets have grown to Kshs.1.822 trillion…”
“Over the last unprecedented seven years of turbulence, the Group has treaded softly yet boldly pursuing the twin strategy of being offensive while remaining defensive…”
