Equity Bank boss earns Sh416 million dividend

In Summary

• Equity BanK Group announced Sh19.8 billion net profit for 2018

• James Mwangi has 5.52 per cent stake in the bank

Equity Bank CEO James Mwangi
Equity Bank CEO James Mwangi
Image: FILE

Equity Bank's  head James Mwangi will take home Sh416 million in dividend after the regional lender announced a net profit of Sh19.8 billion for the year ended December 31, 2018.

The bank’s profit for the year under review was five per cent more compared to the previous year when it posted Sh18.9 billion.

Following the results, the bank declared a dividend payout of Sh2 per share resulting into a total of Sh7.5 billion.

Mwangi is the highest individual shareholder in the bank with 5.52 per cent stake of its 3.77 billion shares.

The chief executive controls a total of 208 million shares in the bank with a market value of Sh8.93 billion. Yesterday, Equity Bank's share closed the day at Sh42.95.

His stake in the bank is now above that of Co-operatives Bank's Gideon Muriuki who has reduced his take in the bank to 103 million shares from 110.3 million. 

Muriuki's shares have market value of 1.54 billion considering the share closed the day at Sh15.20 on NSE yesterday.

Mwangi,  attributed the good performance to increased focus on non-funded income driven by adoption of digital banking systems.

He said non-interest income streams contributed to 38 per cent of the firm’s total revenue.


Mwangi said that 93 per cent of the lenders loans were transacted through mobile phones compared to 79 per cent the previous year.

“This is the resilience we were pursuing to wade the headwinds of slow growth rate of the private sector,” Mwangi said during the release of the lenders full year results.

During the review period, the lender’s loan book grew six per cent to Sh294.8 billion from Sh278.1 billion while customer deposits grew 13 per cent to Sh421.6 billion from Sh373.1 billion reported the previous year.

Gross merchant commission grew by 30 per cent  to Sh2.043 billion up from Sh1.576 billion the previous year.Fees and commissions from Diaspora remittances grew by a significant 169 per cent  to Sh751million up from Sh 279 milllion the previous

The bank’s total assets grew nine per cent to Sh573.4 billion last year from Sh524.5 billion the previous year supported by 26 per cent government securities.

This maintained the bank’s position as the second largest lender in the country by asset base after KCB Group which has Sh667 billion.

Equity Bank’s profits are now second highest among seven banks that have so far declared 2018 financial results.

KCB Group leads the pack with Sh24 billion, Cooperative Bank 12.7 billion, Barclays Bank Sh7.4 billion, Diamond Trust Bank Sh7.08 billion and Stanbic Bank at Sh6.17 billion.