Equity Bank has recorded record of Sh59.8 billion profit before tax and a net profit after tax of Sh46.1 billion, which translated to a 15 per cent year-on-year growth.

Equity also posted a 33 per cent growth in its dividend payout of a record Sh15.1 billion, with the record profits coming even as the country grapples with economic challenges.

The Group boasts of a Sh1.447 trillion balance sheet after an 11 per cent growth in total assets and customer deposits of Sh1.05 trillion after a 10 per cent year-on-year growth rate.

Speaking during the release of the results in Nairobi, Equity Group MD and CEO Dr James Mwangi says the glossy financial results resulted from intentional leadership decisions.

“The Group’s 2022 results reflect the resilience that the business has developed due to deliberate and intentional leadership and management decisions through interest capping period and Covid-19 pandemic environment, strategically positioning the business to navigate the evolving macroeconomic headwinds and turbulence in the financial and economic sectors,” said Dr Mwangi.

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The bank revealed that Sh232.4 billion its balance sheet is held in cash and cash equivalents with strong liquidity buffers of 52.1 per cent.

Non-Performing Loan (NPL) portfolio stood at 7.7 per cent against a 13.3 per cent industry average, a 94 per cent NPL coverage and 123 per cent inclusive of credit risk guarantees.

Its shareholder capital stood at Sh182 billion with core capital to total risk weighted assets of 15.6 per cent and total capital to total risk weighted assets of 20.2 per cent.

Equity Group Director, Research and Analysis Yvonne Mhango. PHOTO | COURTESY

Equity also posted a deposit and liability franchise with a 2.3 per cent and 3 per cent interest cost respectively, an 18 million customer base and a Sh157.5 billion long-term debt funding.

Its capital and long-term debt stood at Sh339.7 billion, loan to deposit ratio at 67.2 per cent as its non-funded income grew at 33 per cent, net interest income at 25 per cent and total income at 28 per cent.

“While the Group’s offensive strategy has helped double the size of the balance sheet and increase its market share by 60 per cent over the last 3 years of Covid-1- environment, the defensive aspects of the strategy have strongly positioned the Group to wither the prevailing challenging macroeconomic environment resulting from the evolution of Covid-19 health pandemic into an economic crisis resulting from disruption of global supply chains and the current macroeconomic headwinds of a stubborn, and sticky inflation, elevated interest rates and turbulence of exchange rates and currency devaluations which have combined to a global perfect financial storm,” added Dr Mwangi.

Equity Group Director Strategy, Strategic Partnerships and Investor Relations Brent Malahay. PHOTO | COURTESY

Equity Group’s non-funded income contributed to Sh58.3 billion or 40 per cent of its Sh144.3 billion total revenue, a cost-income ratio of 48.4 per cent a return on average equity of 27.6 per cent and a 3.4 per cent Return on Average Assets.

 97 per cent of all Equity transactions occurred on digital platforms, on self-service customer devices and 3rd party infrastructure resulting in a reduction of its fixed and variable costs.

Equity Group Board Chair Prof Isaac Macharia. PHOTO | COURTESY

Equity’s profit after tax increased by 15 per cent to Sh46.1 billion from Sh40.1 billion the previous year driven by a 28 per cent growth in total income of Sh144.3 billion.

This was made up of Sh58.3 billion of non-funded income which also increased by 33 per cent and net interest income of Sh86.0 billion which went up by 25 per cent.

The Group credits its stellar performance to boosting of its executive leadership and management while strengthening talent and fortifying organizational governance structure.

Equity Group Executive Director Mary Wamae. PHOTO | COURTESY

Equity released the financial results as it focused on geographical expansion and business diversification initiatives to “strengthen the resilience and risk mitigation of the Group.”

“97 per cent of all Group transactions are on customer self-service on own devices driving efficiency gains, ease and convenience to customers and reduction of fixed and variable costs,” noted Dr Mwangi.

The CEO added, “The Group’s latest breakthrough is digital e-Commerce payments through Pay with Equity (PWE) rails following the wave of mobile and internet banking usage by customers.”