Equity Group on March 28, 2023, announced a Ksh46.1 billion profit after tax for the 2022 financial year.
The profit, the group said represents a 15 per cent year-on-year growth.
According to the 2022 Equity Group full-year financial results, the record profit was driven by a 28 per cent growth in total income to Ksh144.3 billion and a 33.3 per cent growth in non-funded income to Ksh58.3 billion.
A 25 per cent growth in net interest income to Ksh86.0 billion was also named as a contributing factor to the profit increase for Equity Group.
Further, the group announced a 33 per cent growth in dividends payout of a record Ksh15.1 billion.
Ksh11.3 billion was paid as dividends in the 2021 financial year.
“The Group’s 2022 results reflect the resilience that the business has developed due to deliberate and intentional leadership and management decisions through the interest capping period and COVID-19 pandemic environment, strategically positioning the business to navigate the evolving macroeconomic headwinds and turbulence in the financial and economic sectors,” said Dr James Mwangi, Group Managing Director and CEO as he released the results.
Non-funded income
Further, a 73% growth in gross trade finance revenue underpinned by a 37% growth in trade finance guarantees and off-balance sheet items drove the growth of non-funded income.
Total cost peaked at Ksh84.5B after a 39% growth driven by 180% growth on loan loss provision of Ksh13.7B up from Ksh4.9B to achieve 94% NPL coverage at a 2.4% cost of risk and staff cost growth of 30% to Ksh24.8B, up from Ksh19.1B.
Equity Group recorded impressive growth in the midst of a global economic downturn with a global GDP growth rate projected at 2.9% for 2023, with a downside growth outlook as a result of sticky stubborn inflation, elevated interest rates, turbulence in exchange rates, and a financial crisis.
“97% of all Group transactions are on customer self-service on own devices driving efficiency gains, ease and convenience to customers and reduction of fixed and variable costs. The Group’s latest breakthrough is digital e-Commerce payments through Pay with Equity (PWE) rails following the wave of mobile and internet banking usage by customers,” said Dr Mwangi.
Pay With Equity transactions also grew by 393% to 131.5 million transactions while the volume of business transacted grew by 281% to Ksh524 billion during the year.
Further, Internet banking transactions grew by 212% to 10.7 million transactions while the value grew by 136% to Ksh311 billion.
