Equity Group Holdings has reported a 12 percent growth in after tax profit to Shs29.6 billion for the half year 2024.
In results forwarded to Nairobi Securities Exchange (NSE), the regional financial services group showed that earnings per share for the reporting period increased to Sh7.6 from Sh6.7 last year.
Regional subsidiaries accounted for 50.2 percent of the profit before tax for the period. This performance is coupled by strong capital buffers with core capital ratio of 15.8 percent and total capital ratio 18.4 percent versus regulatory threshold of 10.5 percent and 14.5 percent respectively.
Presenting the results the results to shareholders earlier today, Group Managing Director, Dr. James Mwangi said the group had achieved sufficient cushions for its balance sheets while continuing to report above industry profitability.
“We are proud that the Group has sufficient cushion on its key balance sheet buffers being liquidity, capital and Non Performing Loans provisions while at the same time it continues to report above industry profitability metrices with return of average equity of 26.7 percent and return on average assets of 3.4 percent,’’added Dr. Mwangi.
The group’s balance sheet expanded by 6 percent which is above the prevailing inflation rate of 4 percent, bringing its total assets as at Sh1.75 trillion at the end of the reporting period with regional subsidiaries accounting for 49.7 percent of the balance sheet.
Dr. Mwangi expressed optimism that the strong liquidity of the Group has positioned it to effectively support customers as the economy starts showing signs of improvement in the key markets in operate in as signaled by some of the regulators’ reduction of the Central Bank Reference rates.
“With the improved liquidity, the Group continued to optimize its balance sheet reducing leverage by Sh75 billion of expensive borrowings,” he said.
Shareholders’ funds grew by 13 percent to Sh220 billion strengthening the Group’s ability to underpin the private sector led Africa Resilience and Recovery Plan (ARRP) by investing in new subsidiary undertakings in the Insurance Group as well as positioning it well to continue to take advantage of any market opportunities similar to the acquisition made in Rwanda in 2023.
Interest income increased by 22 percent toSh84.8billion from Sh69.8billion despite the high inflation and high interest shocks which saw returns to customers in the form of interest expense grow 30 percent to Sh30.4 billion from Sh23.4 billion.
Non-funded income continues to grow steadily increasing by Sh5 billion and yielding a total income growth of 16 percent to Sh95.1 billion, up from Sh82.1 billion.
