Table of Contents
Key Points:
- Equity Group’s profit increased 12% to $229 million in H1 2024, boosted by regional diversification and innovation.
- Interest income surged to $657.9 million, while non-interest income rose to $332.2 million, despite economic challenges.
- Deposits grew 11% to $10.08 billion, and borrowings were reduced by $581 million, enhancing liquidity.
Equity Group, East and Central Africa’s leading financial services group led by Kenyan banker James Mwangi, achieved notable financial results for the first half of 2024. The group posted a profit of $229 million, marking a 12-percent increase from the same period last year, buoyed by strategic regional diversification and innovation in financial services.
According to the group’s recent financial statement, Equity Group’s profit rose from Ksh26.3 billion ($203 million) in the first half of 2023 to Ksh29.6 billion ($229 million) this year. Regional subsidiaries contributed 50 percent of the earnings, reflecting the group’s successful expansion strategy.
Profit growth driven by interest and non-interest income surge
The increase in profit was primarily driven by growth in both interest and non-interest income. Interest income surged from Ksh69.8 billion ($535.4 million) to Ksh84.8 billion ($657.9 million), while non-interest income rose from Ksh36.49 billion ($283.4 million) to Ksh42.78 billion ($332.2 million). This growth occurred despite challenges such as high inflation and interest rate fluctuations.
Deposits grew by 11 percent to Ksh1.3 trillion ($10.08 billion), fueled by an expanding customer base now totaling 20.7 million. The group’s liquidity position was notably strengthened, with cash and cash equivalents increasing by 55 percent to Ksh341 billion ($2.65 billion).
Equity Group cuts borrowings by $581 million
James Mwangi, managing director and CEO of Equity Group, expressed optimism about the group’s financial health. “Our improved liquidity has allowed for a Ksh75 billion ($581.75 million) reduction in costly borrowings, positioning us well for future growth. We continue to report strong profitability metrics with a return on average equity of 26.7 percent and a return on average assets of 3.4 percent,” Mwangi said.
Under Mwangi’s leadership, Equity Group has solidified its presence across East and Central Africa, with operations extending to Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo. The group’s total assets rose by 6 percent to Ksh1.75 trillion ($13.57 billion), cementing its status as the second-largest bank in East Africa.
