Digitization Aside, Money is Still at the Counter as Equity Reports 17Bn Profit

Equity at 35
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Equity Group has today announced its third-quarter financial results. The Group posted a Ksh 17.4 Billion Profit After tax from Ksh 15.83 Billion, a 10% growth from a similar period. The Group explored a new frontier of digitization of services with the fastest growth registered by the digitization of retail commerce through EazzyPay that saw the volume and value of transactions grow by 91% and 149% respectively year on year.

Although Group increased its lending to enterprises in the real economy by 21%, with loans and advances to customers growing to Kshs. 348.9 Billion up from Kshs. 288.4 Billion, with a majority of its loan portfolio held by enterprises spread in financing trade, housing, energy, water, transport and communication, tourism, restaurants, and hotels, this was not achieved through digitization if the pie charts below are anything to go by.

While 93% in terms of transaction count, is mobile lending and 7% branch lending, in terms of transaction volume, branch lending stands at 79% compared to 21% mobile lending implying that while the bank is experiencing increased number of transactions, there is little borrowing through the mobile platform as compared to the branches

Of the 77% of the Group transactions on mobile, 12% on agency network, 3% through merchants and only 4% and 3% happen on ATMs and branches respectively and a majority of the customers enabled on self-service mobile, the bank

However, the Group’s balance sheet grew by 21% to Kshs. 677 Billion up from Kshs 560.4 Billion driven mainly driven by customer deposits growth of 19% and liquidity of 54.2% reflect the strong strategic positioning of the Group and its ability to effectively manage portfolio risk following the removal of interest rate capping in the Kenyan market. Its net interest income grew by 10% to Kshs 32.29 Billion from Kshs 29.47 Billion and merchant banking business grew by 27% to reach a transaction volume of Kshs 88.4 Billion up from Kshs 69.6 Billion.

Equity reported that scaling of the business through geographical expansion continues to register impressive results, with the regional subsidiaries growing theirs.

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