Equity Group has crossed the Sh1 trillion rubicon, after the acquisition and integration of its business with Banque Commerciale Du Congo (BCDC).
It has brought BCDC's systems into its core banking business after acquiring a majority stake in the Congolese lender.
Speaking in Kinshasa Congo, Group CEO James Mwangi said BCDC brings to the group 112 years of corporate banking experience and will be instrumental in strengthening Equity’s supreme banking experience.
In return, BCDC will benefit from the agility of a dynamic and disruptive business model, he said.
He said the two brands will create a formidable financial institution in DRC that will benefit from Equity's capitalisation and advanced technology.
“We are delighted to witness this milestone that has shattered the psychological barrier of a trillion-shilling balance sheet," said Mwangi in a statement.
The bank is currently among the most capitalised in East and Central Africa with over Sh142 billion giving ands can solely lend a single borrower up to Sh35 billion.
The bank is currently navigating a tough Covid-19 environment that has hit almost all sectors of the economy.
In the year to September, the Group’s net profit shrunk by 14 per cent with the third quarter profit after tax dropping to Sh15 billion compared to Sh17.5 billion reported in the corresponding quarter last year.
Loan loss risk provisions grew 11-fold from Sh1.3 billion to Sh14.3 billion increasing non performing loan coverage to 86 per cent in anticipation of defaults due to reduced earning among borrowers
Total non-performing loans for the quarter under review grew to Sh45.9 billion from Sh26.5 billion over a similar period last year, representing a 73.2 per cent increase.
Mwangi said Equity has accelerated its technology capability to deliver self-service banking across its markets through mobile banking, agency banking as well as online banking.
It boasts being among the leading banks in the region in processing diaspora remittances, mobile banking and merchant banking which gives customers the freedom of self-service banking anytime anywhere.
The one trillion mark by Equity lifts the visibility of the financial sector in the region, significantly to compete favourably with financial institutions in South Africa, West Africa and North Africa for project and development finance.
