Loans restructured by Equity Group #ticker:EQTY have crossed the Sh100 billion mark in the race to cushion customers hit by the coronavirus crisis.
Managing director James Mwangi on Tuesday told investors during a virtual annual general meeting that the restructured loans are equivalent to 30 percent of the bank’s entire loan book.
The majority of the loans are from workers hit by job cuts and unpaid leave as well as small businesses that need urgent help to survive the economic slowdown caused by the disease.
“So far we have accommodated customers who required relief by restructuring payments up to 30 percent of the entire loan book,” said Mr Mwangi.
“We needed to protect our customers so that their business and any income-generating activities can survive and recover after Covid-19.”
Equity loan book stood at Sh379.2 billion at the end of March, meaning that the restructured loans amount to about 26.4 percent of the gross loans.
The bank did not comment on the potential impact of the loan restructuring on its earnings this year. Its net profit in the three months to March dropped 14 percent to Sh5.2 billion.