Equity group’s 2021 full year net profit doubles to Sh40.1bn

NAIROBI, Kenya March 22-Equity Group has nearly doubled its 2021 full year earnings posting a Sh40.1billion net profit compared to Sh20.1billion in 2020, a 99 per cent increase.

The rise in the bank’s profitability was attributed to higher income with total operating income increasing by 21 per cent to Ksh.113.4 billion from Ksh.93.7 billion on increased lending.

According to Equity Group Managing Director James Mwangi, the results mirror the bank’s resilience amidst a volatile operating environment over the past two years.

“When Covid- 19 struck, Equity Group sought its true north, its purpose and commitment to support its members. The Board and Management decided to focus on saving lives and livelihoods while keeping the lights of the economies on,” said Mwangi.

Net interest income grew by 25 per cent to Sh68.8billion up from Sh55.1 billion.

This was driven by a 23 per cent growth in its loan book to Sh1287.8 billion  from Sh477.8billion  and an 81 per cent growth in investment in Government securities to Sh394.1 billion from Sh217.4billion.

Non funded income grew by 15 per cent to Sh43.6 billion up from Sh37.8 billion driven mainly by trade finance, payment channels and foreign exchange trading income.

Total operating expenses dropped by 15.4 per cent to Sh61.5 billion from Sh72.7 billion.

Total assets grew by 29 per cent to Sh1.305 trillion up from Sh1.015 trillion driven by a corresponding 29 per cent growth in customer deposits to Sh959 billion up from Sh740.8 billion

Despite zero rating mobile transaction offerings, transaction income grew by 37 per cent to Sh10.4 billion up from Sh7.6 billion on the back of e-commerce and merchant banking business.

Foreign exchange trading income grew by 33 per cent to Sh8.3 billion up from Sh6.2 billion driven by diaspora inflows that grew 37 per cent to reach Sh383.5 billion up from Sh279.4 billion.

The good performance saw the Group resume dividend payouts with the Board recommending a record dividend pay-out of Sh3 per share totalling Sh11.3 billion.