Equity Group Reports Kshs 40.9 Billion Q3 2024 Profit Amid Expansion

: Equity Group Holdings posts a Kshs 40.9 billion profit for Q3 2024, driven by regional expansion, digital innovation, and a strong focus on financial inclusion.

Equity Group Holdings Plc has announced an impressive profit after tax of Kshs 40.9 billion for the third quarter of 2024, marking a 12% increase from the same period last year. 

The performance, driven by strategic regional expansion and digital transformation, underscores Equity’s position as one of Kenya’s largest and most profitable financial institutions.

Record Profit Boosted by Regional Expansion and Innovation

The group’s stellar performance was fueled by robust growth in its interest income, which reached Kshs 105.2 billion, a significant 14% increase from last year’s third-quarter figure. 

Non-funded income also contributed to the bottom line, growing by 17% to Kshs 42.8 billion. Speaking on the results, Equity Group’s CEO Dr. James Mwangi highlighted the institution’s resilience and forward-thinking strategy:

“Equity Group’s results reflect our commitment to building a resilient, customer-centric bank,” Mwangi stated. “Our focus on digital innovation and a diversified portfolio across the East African region has enabled us to not only withstand economic fluctuations but also to expand our market share.”

Digital Transformation Powers Transaction Volume

Equity’s focus on financial inclusion through digital banking channels has paid off, with mobile and agency banking fees increasing by 18%.

 The bank’s Equitel and EazzyNet platforms continue to record significant transaction volumes, particularly in rural areas where access to banking facilities is limited.

Maintaining Quality: Low Non-Performing Loans

Despite a challenging macroeconomic environment marked by rising inflation and foreign exchange fluctuations, Equity has maintained a strong performance in asset quality. 

Non-performing loans (NPLs) were contained at 8.6% of the total loan book, compared to the industry average of 14%.

 The bank attributed this to robust risk management practices, including advanced data analytics and credit scoring models that minimize exposure to high-risk clients.

Equity’s Social Impact: The Wings to Fly Program

Equity Group’s board of directors has maintained a cautious yet optimistic outlook for the fourth quarter, expecting continued growth as it pursues digital innovation and geographical expansion. The bank is also actively involved in social impact projects, such as the Wings to Fly scholarship program, which has benefited over 20,000 underprivileged students since its inception.

With Equity Group’s strong performance and commitment to innovative and inclusive banking, the institution remains poised to navigate future challenges while delivering value to shareholders and positively impacting the communities it serves.