By Gitahi Ngunyi
Equity Group earned Sh133.3 million in interest income from loans and advances from July, analysis of the banking group’s results for the period ending September 30, 2023
The listed banking group’s interest earnings from loans and advances accelerated by 57.66 percent in a period of three months, trading report for the period ending September 30, 2023 submitted to Nairobi Securities Exchange (NSE) earlier today show. The crucial banking sector income line increased by Sh12.9 billion, equivalent to an average of Sh4.3 billion every month to Sh70.6 billion by end of September from Sh44.8 billion reported for the period ending June 30, 2023. The growth represented 31.3 percent increase from Sh53.7 billion reported for the third quarter of 2022.
The results also show phenomenal growth in the group’s foreign exchange income at 56.3 percent to Sh13.9 billion from Sh8.9 billion earned in a similar period last year. Earning from foreign currency activity was for the reporting period was 7 percent higher than earnings from the same activity for the full year results in 2022.
But the group also reported a sharp increase in interest payouts on customer deposits at 58.4 percent. Interest expense increased to Sh26.1 billion from Sh16.5 billion paid out in similar period last year. The interest expense for the reporting period was 16.3 percent higher than the full year payout for 2022. The group’s aggressive deposit mobilization paid off with a 19.9 percent growth in customer deposits to Sh1.2 trillion from Sh1 trillion during a similar period in 2022. Customer deposits are also 14.8 percent higher than the Sh1.05 trillion the group reported for the full trading year 2022.
After tax profit for the reporting period grew by 3.1 percent to Sh34.6 billion from Sh33.4 billion for a similar trading period last year.