Equity Group profit up 99pc, restructures loans worth Kshs. 188B

Equity group says it restructured loans worth Kshs. 188.2 billion representing 32% of its total loan book for the full year ended December 21, 2021.

The giant lender says it will continue restructuring loans on a case basis to cushion exporters and players in the agriculture sector in light of the Russian Ukraine war and the prevailing high cost of production in the agriculture sector.

Kenya exporters to Russia reeling from the current sanctions imposed on the eastern Europe nation that has seen small scale holders miss out on Kshs. 10 billion worth of horticulture sales.

The lender says it will consider restructuring loans for affected exporters and farmers to cushion them from further losses.

With the increasing fertilizer, the lender says it seeks to increase investments in the agriculture value chain to support the sector, especially during production.

This comes as Equity group posted a Kshs. 40.1 billion post-tax profit for its 2021 financial year.

This represents a 99% year-on-year growth according to the Group Chief James Mwangi.

The growth was driven by high-interest income that increased by 25% to Kshs. 68.8 billion driven by growth in loan book to Kshs. 587.8 billion up from Kshs. 477.8 billion and growth in government security investments to Kshs. 394.1 billion from Kshs. 217 billion and a 2.7% drop in non-performing loans.

The group’s balance sheet registered a 29% growth to Kshs. 1.305 trillion from Kshs. 1 trillion. Customer deposits grew by the same margins to Kshs. 959 billion from Kshs. 740.8 billion.

The lender will pay Kshs. 11.3 billion in dividends with shareholders receiving Kshs. 3 shillings per share representing a Kshs. 50 cent increase from the last payout in 2019.