Equity Group profits rise by 14% to Sh22.6 billion

In Summary

• The performance was driven by a 23% growth in loan book to Sh366.4 billion from Sh297.2 billion in 2018.

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

Equity Group has announced the financial results for the year ended December 31, 2019 that reflect a 14% profit after tax growth to Sh22.6 billion from Sh19.8 billion in 2018.

The performance was driven by a 23% growth in loan book to Sh366.4 billion from Sh297.2 billion in 2018.

The growth in loan book, saw the Group balance sheet register a 17% growth to reach Sh 673.7 billion up from Sh573.4 billion funded by a growth in customer deposits of 14%, shareholders funds of 18% and a 26% growth of long-term borrowed funds.

Speaking during the release of the Group’s results on Friday, CEO James Mwangi said, "Execution of the Group’s business strategy continued to yield results as non-funded income contributed 40% of the Group’s total income reflecting quality and diversification of income. Success in our regional expansion and business diversification saw subsidiaries contribution to Group profit after tax rise to 18% up from 15% the previous year.”

Innovations and digitisation continued to transform the business from a place you go to, to something you do. The business model continues to evolve from a fixed to a viable cost business model.