Equity Group Holdings, a prominent financial services conglomerate headquartered in Nairobi and led by Kenyan businessman James Mwangi, has achieved a significant milestone as its total assets surge past the $11 billion mark.
As of June 30, Equity Group’s total assets surged from Ksh1.447 trillion ($10.05 billion) at the beginning of the year to Ksh1.644 trillion ($11.4 billion). This remarkable growth of $1.35 billion in assets can be attributed to a substantial increase in funding and a significant surge in customer deposits.
Equity Group’s financial results reveal a remarkable funding growth of 23 percent, propelled by a 21 percent increase in customer deposits and a 29 percent growth in shareholders’ funds, driven by the recovery of mark-to-market losses on Eurobonds.
The remarkable leap in total assets beyond the $11-billion threshold can be attributed to the group’s strategic regional expansion initiatives and diversification endeavors. These strategic moves have substantially reduced reliance on the contribution of the Kenyan banking subsidiary.
Notably, other subsidiaries now account for 46 percent of total assets and 45 percent of profit before tax, with the insurance and DRC businesses serving as the driving forces behind this impressive performance.
Commenting on the achievement, Mwangi, the group managing director and CEO of Equity Group, stated: “We are confident Equity Group is strategically positioned as a regional systemic bank among the top three in five of its six operating countries to support further integration and increased cross border trade under the African Continental Free Trade Area while supporting the region to remain the fastest growing common market in the world to offer the opportunity for long-term sustained value creation.”
In the first half of the fiscal year 2023, Equity Group, under the leadership of Mwangi, who derives the majority of his wealth from a 3.38-percent stake in the lender, reported a profit of Ksh26.33 billion ($182.8 million), marking a substantial 7.8-percent increase compared to its profit of Ksh24.43 billion ($169.63 million) during the same period in 2022.
This financial performance is even more noteworthy considering the challenging macroeconomic landscape marked by persistently high inflation, elevated interest rates, fluctuating exchange rates, and the depreciation of emerging market currencies.
The conglomerate’s robust financial performance is evident in its retained earnings, which grew from Ksh189.57 billion ($1.32 billion) to Ksh199.94 billion ($1.38 billion). This solidifies Equity Group’s position as one of Africa’s most profitable banking groups.