Equity Bank chief executive James Mwangi. The lender posted a 21 per cent rise in half-year net profit to Sh7.7 billion. PHOTO | SALATON NJAU
Equity Bank has recorded a 21 per cent growth in half-year after tax profit buoyed by growth in its loan book and transactions-based income.
The bank Wednesday posted a net profit of Sh7.66 billion in the six months to June compared to Sh6.31 billion in a similar period a year earlier.
Credit advances grew by 24 per cent to Sh186.5 billion while customer deposits edged up by 16.8 per cent or Sh30 billion to stand at Sh215 billion.
Diversification of the bank’s portfolio saw improved performance in its non-funded earnings offsetting depressed interest income following reduction of interest rates.
“Profitability was underpinned by a 10 per cent growth in total income supported by improved performance in non-funded income which offset a depressed interest income yield of 300 basis points following reduction of interest rates,” the bank said in a statement.
Total non-interest revenue grew by 19 per cent to Sh8.32 billion aided by growth in merchants business and payments processing while diaspora banking and remittance transactions rose by 23 per cent. Agency banking which grew by 60 per cent overtook both branch and ATM in cash transactions.
In the period under review, the number of customer accounts increased to 8.9 million from 8.41 million, while mobile banking customers rose to 3.04 million from 2.8 million.
Equity, which has operations in Uganda, Tanzania, Rwanda and South Sudan, said the regional businesses had broken even and accounted for 8.7 per cent of profit before tax –an increase from 1.3 per cent contribution as at the end of its financial year in 2013.
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