Equity has a local market share of 10 per cent and operates in neighbouring countries including Tanzania, South Sudan, DR Congo, Rwanda and Uganda. FILE PHOTO | NMG
Global Credit Ratings that first rated Equity in 2015 also accorded the local retail banking giant stable outlook.
The GCR views the capitalisation ratios of the bank as adequate, but noted deterioration of about one percentage point from 19.6 per cent a year earlier.
It, however, said the funding structure of the bank was stable with core customer deposits contributing around 73 per cent of the total liability base.
South African Global Credit Ratings has affirmed the national scale ratings assigned to Equity Group #ticker:EQTY of AA-(KE) and A1+(KE) in the long term and short term respectively.
The agency that first rated Equity in 2015 also accorded the local retail banking giant stable outlook.
The GCR views the capitalisation ratios of the bank as adequate, but noted deterioration of about one percentage point from 19.6 per cent a year earlier. It, however, said the funding structure of the bank was stable with core customer deposits contributing around 73 per cent of the total liability base.
“Positively, capital adequacy is supported by strong internal capital generation, averaging over 25 per cent for the past two years,” said the note.
The latest ratings are valid until September 2019.
“In the first half of 2018 the group continued to grow its bottom line, supported by interest margin growth and lower risks costs, against slightly subdued non-interest revenues.”
Equity earnings retention are expected to continue, which in turn will strengthen what is already seen as adequate capitalisation.”
“The outlook is stable. We expect the group’s earnings to remain strong, increasing 15 per cent – 18 per cent, driven mainly by interest income growth of eight per cent - 10 per cent as a result of the net interest margin recovering to eight percent. Liquidity is expected to remain robust,” it said.
Equity has a local market share of 10 per cent and operates in neighbouring countries including Tanzania, South Sudan, DR Congo, Rwanda and Uganda.
The bank is listed at the Nairobi Securities Exchange.
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