In Summary
- This is attributed to high non-performing loans that hit an industry average of 15 per cent, perhaps an indication of a struggling economy in Kenya.
- Equity Bank Kenya is now on a 50:50 split on Profit After Tax at the Profit Before Tax level it’s 46:54 split.
Equity Bank Group has recorded a five per cent growth in net earnings for nine months of the year to Sh36.2 billion largely on stable earnings in subsidiaries outside Kenya.
According to results released today at Upper Hill, Equity Bank Kenya’s profit after tax declined 20 per cent to Sh19.3 billion, this is the first time the subsidiary has recorded a drop in profits in seven years.
The Managing Director and CEO,Dr.James Mwangi said that the results has been actively utilized with the aid of Social engine to capacitate and de-risk the customers through training initiatives such as Young Africa Works.
”The results are being released in the backdrop of major macro economic shocks which we are slowly recovering from,”
”If you protect your customer, you protect your balance sheet.This is our biggest lesson from the Covid-19 pandemic.The current macroeconomic conditions are somewhat tougher than the pandemic.”He said.
Equity Bank Kenya compared to other subsidiaries is now on a 50:50 split on Profit After Tax at the Profit Before Tax level it’s 46:54 split.
Equity BCDC (DRC subsidiary) posted 142 per cent net profit growth to Sh11.4 billion while Tanzania subsidiary posted 136 per cent growth in net earnings.
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Equity 2023 Q3 Financial Results.
Net profit +5.3% to Kes36.2 Billion.
Assets+24% to Kes1.691 Trillion
Customer Loans +25.5% to Kes 845.9 Billion
Deposits+19.9% to Kes1.2 Trillion
Net Interest Income+21.3% to Kes72.6 Billion
Loan Loss Provisions +96.6% to Kes18.9 Billion
Gross Non-Performing Loans+83.5% to Kes 124.5Billion
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