Equity half year profit up 11.8 pc on higher interest, transaction income

Equity Group posted an 11.8 per cent net profit growth in the half year ended June on the back of higher interest and transaction-based income.

The bank’s net profit in the period stood at Sh8.5 billion compared to Sh7.6 billion a year earlier.

Interest income rose 13.5 per cent to Sh19.2 billion while income from transactions and other fees increased 30 per cent to Sh10.8 billion.

Equity’s core lending business benefitted from a 26.9 per cent increase in the loan book to Sh236.8 billion. Its operating expenses jumped 22.3 per cent to Sh14.2 billion, partly attributed to the firm’s heavy spend on technology in the period.

“Total expenses grew … on the back of costs associated with the strategic investments recently made to enhance the group’s enterprise resource planning capacity,” the bank’s CEO James Mwangi said.