Equity Group Holdings H1 2015 Financial Results and Performance Review

(Last Updated On: August 6, 2015)

James-Mwangi-Equity-Bank-CEO

Equity Group posted an 11.8% net profit growth for the half year ended June 2015. Net profit stood at Ksh8.5 billion while profit before tax stood at Ksh12.10 billion.

Funded income stood at Ksh15.5 billion while non-funded income stood at Ksh10.8 billion showing that the bank is growing non-interest income faster than interest income. Interest income is around 59% of the bank’s total income of Ksh26.3 billion. Total customer deposits rose by 40% to stand at Ksh301bn while loan book grew by 26.9% to stand at Ksh236.8 billion.

Operating expenses went up by 22.3% to Ksh14.2 billion thanks to heavy investment in IT infrastructure. This was a one off expense. The bank wanted to converge banking, telecommunication and fully digitizing the bank.

The subsidiary that runs Equitel, Finserve Africa posted a net loss of 170 million due to heavy investment in acquisition and distribution of SIM cards for free plus other network investments. Currently it has 1,023,646 active users in mobile money as of June 2015. Majority of the loans are borrowed between 9pm and 6am.

In the subsidiaries outside Kenya, Rwanda and Tanzania were the star performers.

1. Equity Bank Tanzania – PBT up 159% to Ksh0.19bn. Loan book grew by 113% to stand at Ksh13.16bn, Customer deposits were up 89% to stand at Ksh14.9bn.

2. Equity Bank Rwanda – PBT up 499% to Ksh0.21bn. Loan book grew by 72% to stand at Ksh7.42bn while customer deposits were up 52% to Ksh7.97bn.

3. Equity Bank Uganda – PBT down 8% to stand at Ksh0.05bn. Loan book +14% to Ksh7.24bn, customer deposits +26% to Ksh10.59bn.

4. Equity Bank South Sudan – PBT down 5% to Ksh0.46bn. Loan book -18% to Ksh3.74bn while customer deposits +96% to Ksh33.33bn.

5. Equity Bank Kenya – PBT up 11% to Ksh10.9bn. Loan book up 24% to Ksh205bn while customer deposits +34% to Ksh237.7bn.

The subsidiaries outside Kenya collectively had deposits of Ksh66.7bn (+73%) with a loan book of Ksh31.57bn (+48%), assets Ksh88.68bn (+64%) and PBT Ksh0.92bn (+41%).