Equity Group Holdings has posted a profit after tax of Kshs 40.9 billion for the first nine months of 2024, representing a 13% growth from Kshs 36.2 billion for the corresponding period last year.
The growth was driven by the strong performance in regional subsidiaries, which contributed to 51% of the Group’s profit for the period under review.
“As business continues to grow in the Democratic Republic of the Congo (DRC) and with synergies realized from the Cogebanque acquisition in Rwanda, subsidiaries now account for 47% of total loans, up from 46% in 2023, and contribute 47% of profit after tax,” the Group noted in a statement on Tuesday.
Customer deposits grew by 9% to Kshs 1.3 trillion, leading to a 12% surge in cash and cash equivalent to Shs 295.5 billion and an increase in investment securities of Shs 468.1 billion.
Earnings per share during the period under review grew by 13% from Kshs 9.2 to Kshs 10.40.
The Group’s interest income grew by 13% from Kshs. 111.1 billion to Kshs. 125.9 billion during the period. Non-funded income increased by Kshs. 2 billion, generating a total incme growth of 8% from Kshs. 128.9 billion to Kshs 138.9 billion year-on-year.
“We are optimistic that the strong liquidity of the Group has positioned us to effectively support our customers as the economy starts showing signs of improvement in the key markets we operate in, signaled by the reduction of the Central Bank Reference rates in some of the countries where we operate,” said Equity Group’s Managing Director and CEO Dr. Jamews Mwangi.
“With the improved liquidity, the Group continued to optimize its balance sheet, reducing leverage by Kshs. 137.6 billion of expensive long-term borrowings,” Mwangi added.
The Group’s total assets grew marginally to reach Kshs 1.7 trillion at the end of September 2024. However, the company did not declare an interim dividend.
Read more: Equity Group Holdings Half-Year Profit Jump 12% to Kshs 29.6 billion
