Equity Group nearly doubled its full-year earnings in 2021, with a 98 percent increase in net profit to Ksh.39.2 billion from Ksh.19.8 billion the year before.
The increase in profitability is due to increasing revenue, with overall operating income rising by 21% to Ksh.113.4 billion from Ksh.93.7 billion.
The increase in operating income was aided by a 24.9 percent increase in net interest income to Ksh.68.8 billion from Ksh.55.1 billion the previous year.
In the meantime, non-interest-funded income (NFI) has increased by 15.8% to Ksh.44.6 billion from Ksh.38.5 billion in 2020.
Equity’s overall expenditures have also decreased by 15.4%, to Ksh.61.5 billion from Ksh.72.7 billion.
This includes a 78.2 percent reduction in loan-loss provision costs, with loan default coverage reducing from Ksh.26.6 billion to Ksh.5.8 billion.
On the heels of its acquisition of DRC’s Banque Commerciale Du Congo, Equity Group’s asset base has increased to Ksh.1.3 trillion, up from a flat Ksh.1 trillion a year ago (BCDC).
Ksh.587.8 billion in net loans and advances to customers and Ksh.959 billion in customer deposits make up the Group’s financial sheet.
The overall dividend payout amounts to Ksh.11.3 billion, or little under 30% of the company’s full-year earnings.
Earnings per share for Equity Group has increased to Ksh.10.38 from Ksh.5.24 in December 2020.
As regional economies recover from the COVID-19 pressure, Equity hopes to return to a pre-interest cap rate of growth.
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