Equity pre-tax profit rises

By James Anyanzwa

The Equity Bank Group has announced a 43 per cent growth in pre-tax profits for the first quarter of this year.

The bank's profit before tax rose to Sh1.7 billion from Sh1.2 billion in a similar period last year.

James Mwangi, the bank's chief executive, attributed the impressive performance to prudent risk management practices, improving macroeconomic environment and improved management efficiencies

"The bank makes its money from household incomes, this means growth or optimism in the economy is important to our customers," Dr Mwangi told an investor briefing at the bank's headquarters in Nairobi on Friday.

"Equally, our continued balanced growth in the region backed by high operating efficiencies is fundamental to an upward trend in profitability."

Operating income

The bank's unaudited financial statements, total operating income grew by 39 per cent to Sh4.6 billion from Sh3.3 billion driven by increases in net interest income.

Net interest income surged by 34 per cent to Sh2.8 billion from Sh2.1 billion. Non-interest income grew by 44 per cent to Sh1.8 billion from Sh1.26 billion mainly driven by commissions on income and fees on loans and advances.

The bank's total assets grew by 33 per cent to Sh111 billion from Sh83 billion while net loans and advances to customers increased by 37 per cent to Sh66.2 billion from Sh48.2 billion.

Mwangi said the bank's solid financial and customer bases coupled with its regional footprint creates a need for partnerships.

He said the moderate growth in the economy provides an opportunity for the country to focus on areas that would provide macroeconomic stability.

Targeting SMEs

He said the bank was playing its role in providing effective channels to households and small businesses in the region.

"Technological infrastructure and education are key underlying planks that provide a fulcrum to the economy," said Mwangi, adding, "the consolidation of regional markets is also critical to economic growth."

He said the bank's introduction of banking model into the regional markets especially in Uganda and Southern Sudan was key in its growth and is poised to pay dividends in the long run.

Source: The Standard | Online Edition