Equity Group's nine-month profit rises 13 percent to $317 million

Feyisayo Ajayi -
Key Points
  • Equity Group’s 9M 2024 profit rose 13.09% to $317.39 million, driven by regional diversification across East and Central Africa.
  • Interest income surged 13.32% to $976.2 million, and non-interest income rose 5.8% to $474.06 million amid inflation pressures.
  • Customer deposits grew 9.04% to $10.21 billion, supporting over 20 million clients and boosting liquidity by 55% to $2.29 billion.

Equity Group, East Africa’s leading financial services group led by Kenyan banker James Mwangi reported a robust financial performance for the nine months of its 2024 fiscal year (9M 2024), with profit rising to $317.39 million, driven by its regional diversification strategy.

According to the group’s unaudited recent release, profit increased by 13.09 percent, rising from Ksh36.2 billion ($280.67 million) in the first nine months of 2023 to Ksh40.94 billion ($317.40 million) in nine months period of its 2024 fiscal year. Regional subsidiaries contributed 49.78 percent of the earnings, reflecting the group's successful regional diversification strategy.

Profit growth driven by interest and non-interest income surge

Profit growth was driven by a 13.32-percent rise in interest income, from Ksh111.13 billion ($861.45 million) to Ksh125.93 billion ($976.2 million), and a 5.8-percent increase in non-interest income, from Ksh57.8 billion ($448.07 million) to Ksh61.15 billion ($474.06 million), despite inflation and fluctuating interest rates.

Customer deposits grew 9.04 percent, reaching Ksh1.32 trillion ($10.21 billion) from Ksh1.21 trillion ($9.36 billion), supported by a customer base of more than 20 million. Liquidity improved, with cash and cash equivalents rising 55 percent to Ksh295.5 billion ($2.29 billion).

Equity Group expands across East and Central Africa

Equity Group has expanded its presence in East and Central Africa, with operations now in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo.

Under James Mwangi, the bank reported a 5.12-percent rise in comprehensive income, from Ksh24.44 billion ($189.14 million) to Ksh25.69 billion ($198.83 million).

The bank's balance sheet showed modest growth, with total assets increasing by 0.71 percent to Ksh1.7 trillion ($13.2 billion). Retained earnings also saw a 12.94-percent increase, growing from Ksh209.07 billion ($1.62 billion) to Ksh236.13 billion ($1.83 billion).