Equity Bank Q1 2015 Financial Results and Performance

(Last Updated On: April 30, 2015)

equity bank

Kenya’s largest bank in terms of customer numbers has posted a 10.7% growth in net profit for the first 3 months of 2015. Profit before tax grew by 13% from Ksh5.4 billion to Ksh6.1 billion.

Interest income grew by 12.5% to Ksh9.4 billion while non interest income grew by 40% to Ksh5.6 billion. Funded income now is 58% of total income while non funded income is 42% of total income. Interest expenses grew by 32% to Ksh1.85 billion while operating expenses grew by 24% to Ksh7.3 billion mainly due to many one off costs such as system upgrades, legal costs in formation of holding company etc.

Customer deposits were up by 35% to stand at Ksh278 billion while net loans grew by 25% to stand at Ksh224 billion. The loan distribution breakdown is SME 50%, 18% large corporates, 23% consumer, 7% micro-enterprises and 3% agriculture. In terms of country distribution: Kenya 86.9%, Uganda 3.1%, South Sudan 2%, Tanzania 4.9% and Rwanda 3.1%.

Equitel has grown to 700,000 activated SIM cards, 16.2 million calls a month, 2.1 million MBs, 3.8 million SMS and Ksh96,331,000 worth of loans. Equitel is almost exhausting the 0763 prefix and will now get permission to get a new prefix and order a new bunch of SIM cards.

Diaspora remittances commissions grew by 18% and volumes went up by 34%. Payment processing and merchant commissions grew by 54% to Ksh181 million. This makes the the number 1 merchant business in the region.

In the regional subsidiaries outside Kenya, customer numbers grew by 18% to 1.2 million, deposits increased by 59% to 58.6 billion, loan book grew by 46% to Ksh29.3 billion and total assets grew by 52% to Ksh77,2 billion. South Sudan is experiencing slow growth due to the political unrest in the country causing the bank to be cautious in lending there but it still is profitable.