Kenya’s regional bank, Equity Group on Thursday announced the financial results for the year ended 31st December 2019 that reflect a 14% profit after tax growth to 22.6 billion shillings ($114 million) from 19.8 billion shillings ($180 million) in 2018.
The impressive performance registered during an interest capping period was driven by a 23% growth in loan book to 366.4 billion shillings ($3.4 billion) from 297.2 billion shillings ($2.8 billion) in 2018.
The growth in loan book, saw the Group balance sheet register a 17% growth to reach 673.7 billion shillings ($6.4 billion) up from 573.4 billion shillings ($5.4 billion) funded by a growth in customer deposits of 14%, shareholders’ funds of 18% and a 26% growth of long-term borrowed funds.
“Success in our regional expansion and business diversification saw subsidiaries contribution to Group profit after tax rise to 18% up from 15% the previous year,” said Equity Bank Managing Director and CEO, Dr. James Mwangi.
Return on average equity (RoAE) from subsidiaries grew to 16.9% up from 13.3%.
Subsidiaries assets accounted for 27% of the Group’s total assets while their profit after tax contribution grew to 18% of Group’s profits up from 14% in 2018.
Improved efficiencies at the subsidiaries saw their cost structure contribution to the Group improve to 35% from 37% in 2018.
“Our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation and our vision of championing social economic prosperity of the people of Africa is driving our business. Our purpose has become profitable,” added Dr. James Mwangi.
The group continued to maintain an agile balance sheet with a liquidity of 52.1%, a loan deposit ratio of 75.9% and a core capital to risk weighted asset ratio of 19.8%.
Kenya’s largest lender in terms of market value is operational in eight African countries and aims to penetrate 15 markets of the continent by 2026.
JK/abj/APA