The Equity Group has held a 2023 Half conference and registered assets growth to Ksh 1.645Trillion, a growth of 23% from Ksh 1.334Trillion, Net loans register 26% growth to Ksh 817.2B from Ksh 650.6B.
The report comes during a challenging macroeconomic environment.
The World is yet to recover from the Covid-19 Pandemic and the Russia-Ukraine conflict which has disrupted global supply chains according to Dr. James Mwangi, Equity Group Managing Director and Chief Executive Officer.
Mwangi says the higher interest rates in the world’s major economies, implies foreign capital inflows into emerging and developing economies will remain subdued.
Mwangi detailed that the government budgets proposed in June by most of the member states of the East African Community, indicated fiscal consolidation, implying continued focus on reducing the budget deficit.
“This policy is intended to rebuild fiscal buffers that have been eroded,” Dr. James Mwangi, Equity Group MD & CEO.
The Equity CEO said the current macro-economic environment has not distracted Equity.
“We remain focused on our strategic #AfricaRecoveryandResiliencePlan which aims to champion the economic recovery of the region.”
He said Equity is focused on supporting businesses, communities and entrepreneurs to wade through this difficult and challenging time.
“We have accelerated implementation of the #AfricaRecoveryandResiliencePlan.”
Mwangi noted that loan Interest Income grew by 27% from Kes 35.3 B to Kes 44.9B compared to a similar period last year.
“We have continued to support businesses and entrepreneurs to wade through these difficult times.”
Mwangi said that in a global economy facing several headwinds, they believe mid-to-high-single-digit real GDP growth goes a long way towards mitigating the risks from macroeconomic imbalances
“East Africa is the fastest growing region in the world; we expect it to grow at 5.7% in 2023.”
Trade Finance Guarantees & Off balance sheet items grew by 13% to Kes 178.6 to Kes 158.4B. This signifies the efforts of Group in promoting cross-border trade through trade missions.
Gross Trade Finance Revenue grew by 117% to Kes 5.7B from 2.6B in 2022. Trade Finance related lending grew by 46% to Kes 50.1B from Kes 34.4B.
“Five of our banking subsidiaries are in the top 3 financial institutions in the six countries we operate in.” He said.
We see the power of Equity Bank Kenya in driving the growth of subsidiaries. We also see the subsidiaries catching up and contributing almost 50% of Group deposits.
Equity’s Market Cap of Ksh. 167B is a testament to the strategy the Group pursues and the quality of the assets with the greatest asset being its people.
