Equity Bank Group’s focus on enhancing affordability, accessibility and convenience has seen its growth momentum maintained for the period ended 30th September 2013.
The regional banking group has posted a 17% growth in customer deposits, a growth of Kshs.28 billion to Kshs.190 billion up from Kshs.162 billion. The impressive growth has been enabled by massive investment in agency banking and mobile banking facilitating easy accessibility convenience and affordability. Customer numbers have now grown to 8.5 million signifying an achievement in pursuit of inclusive banking.
Bolstered by a 30% reduction in interest rate and a focus on the SME segment, the group’s loan book registered a 21% growth to Kshs.159 billion up from KShs. 136 billion posted in September 2012. However the interest income grew by only 4% to Kshs.23.6 billion up from Kshs.22.7 billion as a result of reduction of chargeable interest rate.
Other income, transactions and commission grew by 12% to Kshs.10.6 billion up from Kshs.9.4 billion on the back of increased number of customers due to greater affordability, accessibility and convenience delivered through sustained innovation, agency banking, mobile banking, payment connectivity and investment in ICT solutions.
The number of customers using mobile banking has increased to 2.7 million up from 2 million as at 30th September 2012 while the number of operational agents has grown to over 9,000.
Total operating expenses grew by 19% to Kshs.17.6 billion from Kshs.14.9 mainly driven by operating costs that grew by 15% and provisions to take care of the trailing effects of last year’s high interest rates on NPLs. Operating costs were driven by significant costs of creating the agency network and costs of developing, hiring and training staff to manage SME sector and build Supreme Banking centres. ICT costs have increased significantly as the group upgraded its system and data centre, trained staff in simulating the change of its core banking software from Finacle version 7 to Finacle version 10. As a result profits of the group grew by 7% to KShs 12.6 billion up from Kshs 11.8 billion before tax. Profit after tax grew to Kshs.8.9 billion up from KShs 8.3 billion last year.
Equity Group in the last one year has invested massively in creating infrastructure for merchant business, diaspora remittances and banking and transaction processing by connecting to all global payment systems, American Express (AMEX), Diners Club, Visa Personal Payments, MasterCard, JCB of Japan, Union Pay of China and digital payments offered by Google and PayPal. Equity Group has also invested in a 300 seat Contact Centre to handle customer enquiries through calls and social media platform such as Facebook and Twitter.
In addition the Group has also invested in 3 of the latest and world’s largest IBM Power 7 servers enabling it to increase its processing capability massively and achieve a high availability environment. The Group has also invested significantly in upgrading Way 4 switch, payment gateway and mobile banking by the purchase of an ORACLE Super Cluster to enable migration of its switch, payment gateway and mobile banking system.
In July, Equity Group entered into a partnership with Airtel Money to offer comprehensive M-Commerce solutions to more Kenyans countrywide. The service is available to all Equity Bank customers who are subscribers of Airtel thus enabling them to perform agency cash transactions at Equity branches and has also enabled Airtel money customers to withdraw and deposit money at any Equity Bank branch or Agency Countrywide
“With the fundamentals strengthened, massive investment made and improving macro-economic environment creating huge opportunities, the outlook for 2014 looks promising,” said Dr Mwangi.
The shareholders of Equity Group Holdings (formerly Equity Bank Limited), have approved a raft of...View More
The regional integrated financial services firm, with banking interests in Rwanda, Uganda, South...View More
Equity Bank Rwanda has kicked off a corporate initiative to instantly issue Automated Teller Machine...View More
Equity Bank today unveiled its Mobile Virtual Network Operator (MVNO) strategy and rollout plan that...View More
Emerging from a depressed operating economic environment as well as challenges posed by the recent...View More
Equity Bank Group’s investments in IT, growth in the number of customers and branch upgrades to...View More
Equity Bank Group together with Infosys Technology, IBM, Oracle and Open Way Group today unveiled...View More
Regional banking group, Equity Bank's reduction of interest rates by 700 bps from 25% to 18% has...View More
The Group posted a profit before tax of Kshs 4.52 billion up from Kshs 3.73 billion posted during a...View More
The Group’s total assets posted a 24% growth during the year to close at Ksh 243 billion up from...View More
Partnership to increase financial inclusion and boost EMV migration efforts in the region.View More
Dr. James Mwangi, Equity Bank Group CEO and Chairman of Equity Group Foundation has announced the...View More
The ceremony was organised by the eventing arm of the ABN Group - ABN Productions.View More
Equity Bank Group has today launched a partnership with China Union Pay, which will allow UnionPay...View More
Equity Bank Group continued to defy macro-economic turbulence to maintain steady growth and posted a...View More
The prestigious award presented by CNBC Africa in South Africa for the second year running is a...View More
Dr James Mwangi today at Equity Centre announced two key appointments in the Equity Bank Group’s...View More
Dr Mwangi will serve as a council member of the G8 New Alliance for Food Security and a member of...View More
Membership in the Leadership Council is by agreement and invitation of the Co-Chairs and Council...View More
21 scholars in the Equity Bank university sponsorship program have so far received scholarships in...View More
Regional banking group, Equity Bank continued to maintain its growth momentum with the profit before...View More
Africa's Inclusive Finance Guru Is World's Best EntrepreneurView More
Dr. James Mwangi, CEO and Managing Director of Equity Bank is the 2012 Ernst & Young World...View More
After winning the 2011 East Africa Master Entrepreneur of the Year by Ernst & Young, Equity Bank...View More
Equity Bank has been awarded Best Managed Company in Africa;View More
Equity Bank has been named the Best Bank in Kenya this year as the CEO Dr James Mwangi received the...View More
"People are driven by emotions and it's all about the enthusiasm of liberating our people" Said Dr....Watch Video
Equity Bank Rwanda made a contribution of 22,225 testing kits at a cost of FRW 1Billion to the...View More
Brand refresh is geared towards positioning the brand to empower individuals, businesses and the...View More
The Bank emerged top in class for clearly exhibiting a strong fiscal performance in the financial...View More
The African Guarantee Fund (AGF) and Equity Group Holdings Plc have signed an agreement which will...View More
Equity Group Holdings (EGH) has signed a USD $100 million loan (Ksh 11 Billion) facility to support...View More
Equity Bank Rwanda is pleased to announce the launch of new loan products for the agriculture sector...View More