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Equity Group Holdings, a leading financial services conglomerate based in Nairobi and headed by Kenyan businessman James Mwangi, has demonstrated impressive financial resilience in the first three months of its 2023 fiscal year, as its profits soared above $90 million.
The recently released first-quarter results revealed an 8 percent increase in Equity Group’s profit under the leadership of James Mwangi, rising from Ksh11.9 billion ($86.6 million) in the first quarter of 2022 to Ksh12.8 billion ($93.2 billion) in the first quarter of 2023.
This growth can be attributed to the remarkable 57-percent surge in the group’s nonfunded income, which soared from Ksh11.5 billion ($83.7 million) to Ksh18 billion ($131 million).
Nonfunded income accounted for 45 percent of the total income, showcasing a significant improvement in the company’s earnings quality.
Mwangi, the managing director and CEO of Equity Group, attributes the company’s strong growth to its social and trust capital, which has earned the group recognition as the fourth-strongest financial brand globally.
“The strong growth speaks to the group’s embedded social and trust capital that has seen the group’s brand rated the fourth strongest financial brand on Earth,” Mwangi said. He further emphasized the importance of customer experience, capabilities, and superior product offerings in solidifying the brand’s strength.
Equity Group’s regional expansion and product diversification strategy has been successful, with a nearly equal distribution of business between its anchor Kenya operations and its regional banking subsidiaries and non-banking ventures.
The company, with subsidiaries in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo, has positioned itself as the largest financial services group in East and Central Africa.
Mwangi, a significant shareholder with a 3.38-percent stake in the company, has played a crucial role in Equity Group’s expansion. As a result, despite a challenging macroeconomic environment, the group achieved a remarkable 21 percent growth, with total assets reaching Ksh1.537 trillion ($11.21 billion) in the first quarter of 2023.
The growth was fueled by a 23 percent increase in customer deposits, which reached Ksh1.111 trillion ($80.8 million), and a 21 percent expansion in the loan book, which grew to Ksh756.3 billion ($5.5 billion).
With Mwangi’s strategic leadership and the successful implementation of its expansion and diversification plans, the group is well-positioned to navigate the evolving economic landscape.
