Net profit: Equity Group records Sh12b first-half profit
Equity Bank Group’s digitisation rolled out three years ago has contributed to the bank’s 9 per cent increase in net profit of Sh12 billion for the period which ended on June 30, 2019.
The financial report indicates that profit after tax jumped up from Sh11 billion while the group’s profit before tax rose by 10 per cent to Sh17 billion in the first-half of this year, helped by higher interest and non-funded income.
Group Chief executive officer, Dr James Mwangi said the interest income of the Group grew by nine per cent to Sh27.7 billion, while the non-funded income was up 13 per cent to Sh14.9 billion.
“The successful execution of the Equity 3.0 innovative business strategy which is centred on digitisation and virtualisation, disruption of delivery channels, transforming the business model and redefining customer’s experience delivered a 10 per cent growth in profit before tax during the first half year of 2019,” he said.
Speaking while releasing the half-year results in Nairobi yesterday, Mwangi said due to the exemplary performance, the group has set aside Sh17 billion of which Sh5 billion will be used to pay taxes while the rest will be paid as dividends for the six months’ period.
He said the convenience of virtualisation and digitisation of the group saw the number of loans disbursed reach two million out of which 1.9 million loans (93%), worth Sh20 billion were disbursed through the Equitel mobile channel while 100,000 loans (7%) worth Sh70.9 billion were disbursed through the branch.
Mwangi said due to digitisation, the uptake of loans has jumped from three per cent to 17 per cent in the last six months. It has also reduced the role of agencies.
He said because of reduced roll of the agencies, they will now be charged with other roles such as bank assurance, offering loans to SMEs and advisory work to clients.
Mwangi said the group has set aside Sh20 billion, which will be lent to its Afia centres to assist them buy equipment that they can use to support healthcare – which is one of the Big Four agenda.
Afia heath cenres
He said so far five ‘Afia’ health centres have been established in Nairobi to assist the government realise its agenda on Universal Health Care System.
Equity Afia’ chain of clinics will offer diagnostic services, laboratory tests, outpatient care, pharmacy dispensing, dental services and health screening to individuals and companies.
The health business will be run as a franchised network under the bank’s social arm — Equity Group Foundation (EGF) — which the regional lender says will offer “affordable and high quality” healthcare.