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Equity Group Holdings, Kenya’s largest financial services group led by renowned banking tycoon James Mwangi, reported a profit of Ksh11.9 billion ($102.4 million) at the end of the first quarter of its 2022 fiscal year, owing to an increase in interest income.
This follows the lender’s record-high profit of Ksh40.1 billion ($350.2 billion) in 2021, which boosted its financial position and resulted in the payment of a dividend of Ksh11.3 billion ($97.25 million) to shareholders as a reward for their investment in the Kenya-based financial services group.
The bank’s profit increased by 36 percent in the first three months of 2022, from Ksh8.7 billion ($74.9 million) in the first quarter of 2021 to Ksh11.9 billion ($102.4 million) in the same period of 2022, according to a quarterly filing released on Friday.
Earnings increased primarily due to a rise in net interest income, which increased from Ksh20.34 billion ($175.1 million) to Ksh26.67 billion ($230 million) as the group delivered a resilient financial performance despite operating environment challenges.
As a result of the strong financial performance, the group’s total assets increased by 19 percent from Ksh1.07 trillion ($9.2 billion) to Ksh1.27 trillion ($10.93 billion), while cash and cash equivalents decreased by 31 percent from Ksh241 billion ($2.07 billion) to Ksh166.4 billion ($1.43 billion) as the group resumed aggressive lending.
As of press time on May 13, shares in the Kenya-based lender were worth Ksh45.5 per share, up 2.02 percent from their opening price on the Nairobi Securities Exchange this morning.
At the current price, the lender’s market capitalization is valued at Ksh172 billion ($1.48 billion), while the market value of Mwangi’s 3.38-percent stake in Equity Group is Ksh5.81 billion (50 million).
On account of group’s strong strategic position and improving socio-economic environment, Equity Group rolled out the “Africa Recovery and Resilience Plan” under Mwangi aimed at supporting the swift recovery of the private sector.
Equity Group has invested Ksh700 billion ($6.02 billion) in the plan to lend to 5 million micro, small and medium enterprises, while collaborating with national governments to create an enabling microeconomic and policy environment for the private sector to thrive.
