Equity Group Holdings Plc once again demonstrated its resilience and strategic prowess, closing the financial year 2024 with remarkable results that underscore its position as a leader in the financial sector.
The Group’s performance, unveiled today, reflects a blend of innovation, diversification, and a commitment to regional growth, even amidst a challenging global economic landscape.
Key Highlights from FY2024 Investor Briefing
- Equity Group posted a Profit Before Tax (PBT) of KES 60.7 billion, marking a 17% increase from the previous year.
- The Profit After Tax (PAT) stood at KES 48.8 billion, a 12% rise compared to FY2023. These figures highlight the effectiveness of the Group’s diversified business model, which continues to drive sustainable growth.
- The lender saw total deposits grow to an impressive KES 1.4 trillion, supported by a customer base that expanded to 21.6 million.
- Asset quality improves by 100 basis points from Q1 2024 to Q4 2024.
Dr. James Mwangi, the Managing Director and CEO of Equity Group Holdings Plc, expressed pride in the Group’s achievements. “We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth,” he stated.
The Group’s regional operations contributed 49% of total assets and 54% of the profit before tax, showcasing the importance of its presence across multiple markets.
The Group’s liquidity position remains strong, with cash and cash equivalents rising by 19% to KES 345 billion, and investment securities growing to KES 512 billion. These figures contribute to an overall liquidity ratio of 57%, positioning the Group to support its ambitious Africa Recovery and Resilience Plan (ARRP).
Equity Group’s Communities and Driving Inclusion
Equity Group’s commitment to empowering communities and driving financial inclusion has been a cornerstone of its operations. The ARRP, a private sector-led development plan championed by Equity, aims to catalyze, capacitate, connect, and finance enterprises and households across Africa. Through strategic partnerships with Development Finance Institutions (DFIs), global implementation partners, and social institutions, the Group has delivered a wide range of social and commercial outcomes with lasting, sustainable results.
Notably, the Group has partnered with organizations such as the African Development Bank (AfDB), Microsoft, and Mastercard Corporation to digitize 10 million farming customers under the Community Pass initiative. This initiative enhances financial inclusion and digital accessibility, empowering smallholder farmers to transition into agribusiness.
Read:Equity Bank Ranked 4th Strongest Banking Brand Globally
Dividend and Future Outlook
Equity Group’s Board has proposed a dividend per share of KES 4.25, representing a payout ratio of 34.5%. Earnings per share increased by 11% to KES 12.3, reflecting the Group’s robust financial performance and its ability to generate returns for its investors.
Looking ahead, Equity Group is well-positioned to maintain its leadership in the financial sector. With strong liquidity, capital buffers, and a focus on innovation, the Group is poised to navigate the challenges of the global economic landscape while seizing opportunities for growth. Dr. Mwangi emphasized the Group’s readiness to support its customers and drive sustainable development across the region.
