Equity Group reports record performance
Last month, Equity Group released its 2021 financial results and reported a record performance. The bank recorded a 99% growth in Profit After Tax to Kshs 40.1 billion from Kshs 20.1 billion, 29% growth in balance sheet to Kshs 1.305 trillion from Kshs 1.015 trillion & 29% growth in customer deposits to Kshs 959 billion from Kshs 740.8 billion making Equity the largest bank in Kenya & in the region in terms of balance sheet, profitability, market capitalisation & customer base.
Against a backdrop of uncertainty, the Group focused on supporting customers and in the process increased and accelerated loan disbursements and growth by over 29% and 23% for the two years respectively while the economy was plummeting to a GDP growth rate of negative 0.1% from a high of 5.8%. Equity was committed to save the businesses of its customers while maintaining livelihoods and despite a challenging operating environment they recorded a superior performance in 2021.
Name:Some highlights include
· 29% growth in Balance Sheet to Kshs 1.305 trillion from Kshs 1.015 trillion
· 29% growth in customer deposits to Kshs 959 billion from Kshs 740.8 billion
· Emerges the largest bank in Kenya and in the region by all key parameters: balance sheet, profitability, market capitalisation and customer base
· Improvement in NPLs from 11% to 8.3% and increase of provision coverage from 89% to 98%
· 99% growth in Profit After Tax to Kshs 40.1 billion from Kshs 20.1 billion
· 98% growth in earnings per share to Kshs 10.40 from Kshs 5.20
· Record dividend pay-out of Kshs 11.3 billion, a 50% increase from last dividend pay-out for 2018
According to Equity Group MD and CEO, Dr James Mwangi, the Group’s offensive and defensive strategy has led to achievement of the twin objective of securing the future while securing market gains of customer consolidation. Equity Group has now strategically positioned itself as a systemic regional diversified business in six countries with the dominant market in Kenya contributing only 59% and 63% of the Assets and Revenues respectively. Strict adherence to IFRS 9 has led to full recognition of lifetime risk in the Asset portfolio with provisions for portfolio at risk being 98% and at 128% with credit risk guarantees.
“We have strengthened our business model to achieve an embedded shared value concept in our twin-engine of social and economic aspirations and deliverables. We have scaled our social and environmental impact investments in capacity building and enhancement through education, health, and entrepreneurship training,” said Dr Mwangi, adding, “We have strengthened our participation in formalising and integrating the informal sector in the real economy with the formal supply chains and ecosystems of agriculture, micro, small and medium enterprises.