Equity Group Holdings’ profit surged 12% to Kshs 29.6 billion in the first half of 2024 while earnings per share in the same period increased to Kes 7.6 from Kes 6.7.
The performance was primarily driven by the robust surge in interest income by 22% to Kes 84.8 billion compared to Kes 69.8 billion for the same period last year. Non-funded income grew by Kes. 5 billion.
The Group said its deposits rose by 11% to Kes 1.3 trillion from 1.2 trillion while its customer base increased to 20.7 million, thanks to the successful regional and product diversification. The Group’s regional subsidiaries in Rwanda, Tanzania, Uganda, and DRC, accounted for 50.2 percent of the earnings before tax.
Its balance sheet stands at Kes 1.75 trillion, representing a 6% year-on-year growth. “We are proud that the Group has sufficient cushion on its key balance sheet buffers being liquidity, capital, and NPL coverage,” said the Group Managing CEO and director, Dr. James Mwangi.
However, its expenses increased by 27% driven by the high inflation and Group’s modernization move. Interest experience in the same period grew 30% to Kes 30.4 billion from Kes 23.4 billion.
Insurance has also been critical to the Equity Group’s business and resilience. As per the report, the Group had 1.5 million consumers for pension and life assurance and had issued more than 12 million life policies.
The Group also attributed its transformation to increased focus on technology-led business. The report shows digital channels account for 84% of the Group’s overall transactions. Agent channels account for 9% of transactions while branches process only 3 percent of the transactions.
In addition, the Group has created a strong brand. Equity Group Holdings Limited accounts for about 9.5% of the NSE equity marker, with a market capitalization of Kshs 151 billion.
