EQUITY BANK GROUP GROWS TO EXCEED KSHS 100 BILLION IN ASSET BASE

Group posts Kshs 5.27 billion profit before tax reflecting a growth of 5 % over last year’s results.

Nairobi, February 18 2010… Equity Bank Group defied the challenges of both domestic and global economic recession to grow its asset base in 2009 by 28% to over Kshs 100 billion. In spite of its massive growth, driven by its regional expansion and growth in range of financial services offered, Equity group today announce a Kshs 5.27 billion profit  before tax reflecting a growth of 5 % over last year’s results.
During the period under review, total operating income for the group went up by 24 per cent to reach Ksh 15.7 billion, while operating expenses went up by 37 per cent to close at Ksh10.5billion

The increase in costs is attributable to the enhancement of capacity by the bank and the scaling up of operations to support both the local and regional expansion programme, which saw the bank commence operations in Southern Sudan, and the opening of new branches in Kenya and Uganda. The branch network in the region now stands at 155 supported by 512 ATMs and over 4000 point of sales. Clients have access to their accounts throughout the region.

The group’s consolidated loan book closed at KShs63.4billion, up from Kshs44.1billion the previous year, reflecting a 44 per cent growth. And despite the increase the quality of the loan book remained healthy as reflected by the portfolio at risk ratio of 4.7 per cent.

Overall deposits for the group grew by 39 per cent to close at KShs69.8billion from Kshs50.3billion last year, while the number of customer deposit accounts continued to grow, with the bank now having over 4.3million customers as at the close of the year.

Releasing the results during an investor briefing, the bank’s Chief Executive Officer Dr James Mwangi said the bank had posted the impressive results despite the challenging business environment caused by high inflation levels and the general economic slowdown in the country.

“The good performance by the bank is attributable to consistency in strategy execution focused on growth, balanced with efficiency and risk management through enhanced internal control systems,” Dr Mwangi said.

The bank during the year focused on investing and growing future earning platform through national and regional expansion that saw the bank open  in Sudan, Uganda  and increase its branch network by 27 during the year.

Dr Mwangi said Equity will continue to invest in cutting edge technology that would enable the bank deliver service to its customers more effectively and conveniently.

Restating the fact that the bank makes its money from household incomes and transactions, Dr. Mwangi said the bank would continue to forge strategic partnerships to empower customers and enhance the bank’s financial services portfolio. The Bank’s CEO cited the Safaricom partnership which allows M-Pesa customers to access money from the bank’s automated teller machines throughout the country.

On Corporate Social Investment, the Bank through Equity Group Foundation partnered with one of the leading foundations in the world, MasterCard Foundation to launch a scholarship fund to assist orphans and disadvantaged but academically gifted students access secondary school. The Equity Group Foundation  has together with the MasterCard Foundation put in Kshs 350 million to assist over 600 vulnerable children access secondary education.
Speaking recently about the secondary school scholarships, Dr. Mwangi said that 62% of Kenyans live in absolute poverty which meant that some very bright children were hindered from achieving their potential. “I have seen what poverty confines people to and I know that majority of academically gifted but poor children would lack means to see them realize their full potential. This is why the Bank is seeking partnerships with likeminded institutions and individuals not only to financially assist these children but also to provide mentorship”. He said.

The impressive results come on the back drop of the Bank being named the best performing company in Africa in last year’s Africa Investor Index Series Awards 2009, held at the New York Stock Exchange.

The bank’s CEO was also chosen as Africa’s CEO of the year in the Africa 100 CEO category Index at the Pan-African Awards.  The African Investor Index Awards recognizes and rewards Africa’s institutional investors, stock exchanges, best performing listed companies, stockbrokers and capital market regulators.
And for the second year running, Equity was named the Micro Finance Bank of the Year in Africa during the annual African Bankers Awards ceremony held in Istanbul, Turkey. Equity bank won the award in a category contested by major financial services providers from South Africa and Nigeria.
This year, Dr Mwangi was also named by the Financial Times of London as one of the top 50 emerging market business leaders.

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