Equity Bank records 25% profit - CNBC Africa

Equity Bank records 25% profit

East Africa

by Elayne Wangalwa 0

Financial provider, Equity Bank Group has posted a 25.6 per cent increase in its pretax profit in its third quarter results. PHOTO: Getty

The lender's profit before tax increased to 15.69 billion Kenyan shillings from January to September 2014 from 12.49 billion Kenya shillings a similar period last year.

The group’s positive performance has been attributed to the growing economic activity across the East African region.

Present in four other countries, Uganda, Tanzania, Rwanda and South Sudan, the subsidiaries combined net profit was 1 billion Kenyan shillings from 580.9 million Kenyan shillings during a similar period last year.

The lender, which is Kenya’s largest financial institution by customer base, saw its total assets increase by 26.8 per cent to 339.4 billion Kenya shillings on the back of its loans and advances to customers which grew by an astounding 30.3 per cent to 206.7 billion Kenyan shillings.

Mobile banking customers stood at 3.2 million with the lender aiming to grow this base through their Mobile Virtual Network Operator (MVNO). 

Last month, the bank was allowed to deploy its mobile phone banking and cash transfer service over a one-year trial period. For this, Equity Bank has partnered with the country’s second largest telecommunication, Airtel. The partnership will reduce Equity’s cost of delivering MVNO services and this benefit will be passed on to customers.

“We are glad to let the public know that after doing scientific research on the thin sim and all allegations that had been placed, none of the held.  Equity has a clean and conditional license from the Central Bank of Kenya and from Communication Authority of Kenya to issue the thin sim,” James Mwangi, CEO at Equity Bank told CNBC Africa.

The financial institution has placed an order of 5 million thin sims which they hope will arrive in the country before the end of the year.

“We have just launched two weeks ago and have already 200,000 Kenyan with the Equity sim card. There are transacting, we are seeing significant data flowing. About 200,000 Equity card holders are doing money transfers for free,” Mwangi said.