Kenya’s Equity Group yesterday reported a 20% year on year profit growth for the period ended 31st March 2016. Profit before tax increased from KSh.6.1 billion to Kshs.7.3 billion while profit after tax rose from Kshs.4.3 billion to Kshs.5.1 billion for the same period last year.
The Group says its non-performing loans stood at 3.8% against non-performing loans of 4.3% similar period last year. Other operating costs grew by 8% as a result of successful deployment of variable costs 3rd party delivery channels of Agency banking, Merchant banking and Mobile banking saving on fixed costs.
The performance has benefited from the Group’s strong brand that has seen the number of customers grow to reach 10.3 million. The huge customer base provide a diversified risk base avoiding concentration of risk.
Strong governance structure that outlaw insider trading and borrowing by directors with a strong code of conduct and ethics, a speak out policy and a proactive intelligence risk culture of accountability have differentiated the bank and given public confidence at a time the banking industry is going through challenging times.
The improving micro economic environment characterized by declining inflation, declining current account deficit, stable foreign exchange and declining interest rates is likely to spur continued growth. Improvement in security and as a result the tourism sector better weather patterns with sustained good rainfall spurring agriculture and increased foreign direct investments and continued investments in infrastructure provide an opportunity for improved business opportunity.