Earnings UpdateEquity Group Holdings Records 98% Growth in Profit to Kes 17.9 Billion in H12021

Equity Group Holdings CEO & MD, Dr James Mwangii

Equity Group Holdings Plc has recorded 98% growth in its profit after tax to Kes 17.9 Billion in H1, 2021 compared to Kes 9.1 Billion posted during the same period last year, defying the effects of the COVID-19 pandemic on the economy.

Equity attributed the performance to significant growth in customer deposits, which pushed its balance sheet size to Kes 1.1 Trillion in H1, 2021, a 51% growth from KSh 746.5 Billion in H1, 2020.

” We have seen significant recoveries in all the six countries where we operate, with the market bouncing back to the pre-COVID-19 growth trajectory.”  Dr James Mwangi, Equity Group Managing Director and CEO.

Net Loans and advances grew by 29% to Kes.504.8 billion, up from Kes.391.6 billion. In comparison, investment in Government securities grew by 46% to Kes.315.5 billion, up from Kes.216.4 billion, resulting in 50% growth in Total Assets to Kes.1.12 trillion up from Kes.746.5 billion.

Total Income increased to Kes.51.6 billion in the six months period up from Kes. 38.7 billion driven by a 26% growth in Net Interest Income of Kes. 31.2 billion up from Kes.24.6 billion and a 45% growth in Non-Funded Income of fees, commission and transactions to Kes.20.4 billion up from Kes.14.1 billion.

Net non-performing loans declined by Kes. 5.4 billion from Kes.28.3 billion to Kes.22.9 billion during the six months period ended 30th June 2021, due to the aggressive provisioning the previous year under the defensive strategy.

Customer deposits grew by 51% to Kes 820.3 Billion while Equity Group cut its provisions for loan losses by 66% from Kes 7.7 Billion in H1 2020 to Kes 2.6 Billion in H1, 2021.

Equity Plc Outlook

” We have revised the outlook for 2021 as customers take into account the pandemic as the new normal. Kenya is already outperforming the rest of our regional subsidiaries and we expect that increased COVID-19 vaccinations will enable it to recover and bounce back even faster that the rest of our markets,”  Dr  James Mwangi.

The lender has now shifted 97% of its entire business from brick and mortar infrastructure to digital channels.

Figures indicate that the lender recorded 606.9 Million transactions on its digital channels and only 19.6 Million transactions via the legacy banking channels such as ATMs and Branches. In comparison, Diaspora remittances accounted for 4.9 Million transactions during H1, 2021.

Out of the Kes 171 Billion loans that Equity Group rescheduled due to the COVID-19 Pandemic, customers have resumed repayment of Kes 103 Billion and are expected to resume repayment on loans worth Kes 56 Billion over the next 12 months. Only Kes 4 Billion in this loan portfolio remains non-performing.

The Board did not recommend the payment of an interim dividend.

Read also; Equity Posts 64% Growth in Profit After Tax at Kes 8.7 Billion for 1Q2021.

 

This is where investors get first hand information, Securities real time feed & updates from Emerging & Frontier Markets worldwide with main focus on the Nairobi Securities Exchange.

Copyright, 2021 © All Rights Reserved

TSLA 
$753.64  $1.70  0.23%  
GME 
$191.24  $1.10  0.58%  
MSFT 
$299.56  $0.9800  0.33%  
AAPL 
$146.83  $0.9800  0.67%  
AMC 
$39.98  $0.1000  -0.25%  
GMEQX 
$13.08  $0.0300  -0.23%  
FB 
$345.96  $2.75  0.80%  
TWTR 
$66.69  $2.44  3.80%  
AIR.BE 
117,84 €  4,44 €  3.92%  
ABNB 
$175.13  $5.17  3.04%  
GOOGL 
$2,824.32  $18.65  0.66%  
AMZN 
$3,416.00  $35.95  1.06%