Equity Group Holdings (EGH) Ltd reported 36 per cent growth in net profit for the three months ended 31 March 2022.
The listed lender to of the Nairobi Securities Exchange (NSE), attribute much of the performance to growth in both interest and noninterest income and higher profit contributions from the regional subsidiaries.
The bank increased its Profit After Tax (PAT) to Ksh 11.9 billion (US$102.58 million) from Ksh 8.7 billion (US$75 million) in the same period last year, with regional units contributing to the bottom line for 21 percent ($16.37 million) to 30 percent ($31.03 million).
The bank has a presence in six countries, including the Democratic Republic of the Congo (DRC), Kenya , Uganda, Tanzania, South Sudan etc nd Rwanda, and has a representative office in Ethiopia.
According to the group’s unaudited financial statements released on Thursday, operating income increased by 21 percent from Ksh 25.5 billion (US$219.82 million) to Ksh30.9 billion (US$266.37 million), while the total cost increased by 13 percent from Ksh13.8 billion (US$118.96 million) to 15.6 Ksh billion (US$134.48 million) increased over the same period.
Net interest income increased 31 percent from Ksh 14.8 billion (US$127.58 million) to Ksh 19.4 billion (US$167.24 million), while unfunded income increased 7 percent to Ksh 11.6 billion (US$100 million) from Ksh 10.7 billion (US$92.24 million). -dollars).
The lender increased its investment in government bonds by 50 percent to Ksh 389.4 billion ( $3.35 million). billion) from Ksh 258.9 billion (USD 2.23 billion)
The loan book increased by 28 percent to Ksh 623.6 billion (USD 5.37 billion ) of Ksh 487.7 billion (US$4.2 billion) in total deposits grew 14 percent from Ksh 790.6 billion (US$6.81 billion) to Ksh 900.9 billion (US$7.76 billion) Dollars).
Loan loss provisions increased 25 percent to Ksh 1.4 billion (12, 06 million USD).
The total assets of the group grew by 19 percent to 1 Ksh 0.26 trillion (US$10.86 billion) from 1.06 trillion Ksh (9 .13 billion US dollars).
Equity Bank positions itself to benefit from rising business in DRC after Kinshasa signs accession treaty as seventh member of EAC regional bloc.
The lender is working to expand its business and market share in the DRC by funding and facilitating payments for the expected increasing number of investors and traders between the two countries.
The DRC imports over US$2 billion worth of basic commodities, with Kenyan investors are trying to develop this area.
Apart from minerals, the DRC has a dynamic agricultural sector and is also heavily involved in cosmetics and textiles as well as in the service industries.