Equity Group has reported a 12 percent increase in its half-year profit after tax, reaching Sh29.6 billion, driven by strong interest income and robust performance from its regional subsidiaries.
The lender’s latest financial results show a 22 percent growth in revenue generated from interest, which rose to Sh84.8 billion from Sh69.8 billion during the same period last year.
The bank’s subsidiaries in Rwanda and the Democratic Republic of the Congo (DRC) played a significant role in this growth, with these regions now accounting for 47 percent of total loans and contributing 51 percent of the profit after tax.
James Mwangi, Equity Group Holdings Managing Director and CEO, expressed optimism about the group’s future, noting that the strong liquidity has positioned the bank to effectively support its customers as economic conditions in key markets begin to improve.
Mwangi highlighted that the Group reduced its leverage by Kshs.75 billion in expensive borrowings, optimizing its balance sheet.
Equity Group’s total assets expanded by six percent to Sh1.75 trillion, while deposits grew by 11 percent to Sh1.3 trillion.
Mwangi also emphasized the Group’s solid financial health, citing a return on average equity of 26.7 percent and a return on average assets of 3.4 percent, reflecting its continued profitability above industry standards.