Equity Bank profit before tax up by 29 percent

Nairobi, 26/4/2012 . . . Regional banking group, Equity Bank’s ongoing focus on product development, credit and risk management have paid off with a 29 percent growth in profits before tax. The Bank has posted a profit before tax of Kshs 3.73 billion up from Kshs 2.90 billion posted during a similar period in 2011.

In the first quarter ending March 31st 2012, Equity Group’s profits after tax went up to Kshs 2.64 billion from Kshs 2.33 billion posted within the same period last year.

Despite a challenging business environment characterized by rising inflation and interest rates, prudent cost and risk management saw Equity Bank’s total income rise by 38% to Kshs 9.01 billion from Kshs 6.52 billion. The total operating expenses rose to Kshs 5.31 billion from Kshs 3.65 billion for the period under review.

Equity Bank’s total assets grew by 36% during the period to close at Kshs 208.9 billion in March 2012 compared with Kshs 153.5 billion.

Net loans and advances grew by 41% to Kshs 121.1 billion from Kshs 86.2 billion advanced during the same period last year. However, the net asset quality improved from 2.1% as at March 2012 to 0.71% in March 2011. Gross Non-performing Loans to Gross Loans dropped to 2.7% up from 4.5 percent in 2011 despite the loan book growing by 41% from 86 billion to 121 billion for the same period. New loan management structure supported by an integrated credit origination, management and collection system helped improve management and quality of loan book.

Customer deposits grew by 34% to close at Kshs 153.68 billion up from Kshs 115.07 billion during the same period last year. The Bank’s customer base grew by more than 1.3 million to over 7.5 million up from 6.2 million a year ago making the bank the largest bank in customer base in Africa.

Speaking when he released the first quarter results for 2012, Equity Bank Group CEO and Managing Director, Dr James Mwangi said the Bank is modeled around sound management and corporate governance structures which have helped cushion the Bank against risks inherent in the market today. The unique business model has proven resilient to the challenging economic environment.

The Bank’s long term borrowing funds increased by 110 percent to Kshs 14.9 billion up from Kshs 7.9 billion on the back of an enhanced global rating for the Bank.

“The awarding of Equity Bank AA- credit rating and the continued good performance has enabled the institution attract long term funds from international lenders, which are invested in projects that uplift the lives of the people of the region and at very competitive rates”, said Dr Mwangi.

Share

Share This File

×

Link copied to clipboard.

Copy

Email