COVID-19 weighs on Equity Group’s half-year performance

Equity Group, one of the leading financial institutions in Africa, has reported a significant drop in its half-year net profit, attributing the decline to the challenges posed by the COVID-19 pandemic. The lender's CEO, James Mwangi, revealed that the net profit had decreased by 24.3% to $83 million, primarily due to a substantial increase in provisioning for loan defaults. Mwangi emphasized that the performance reflects the impact of COVID-19 on the operating environment and different business sectors, particularly those significantly affected by the pandemic such as the service industry, tourism, travel, and aviation. Despite the challenges, Equity Group has been proactive in supporting its customers and ensuring business continuity during these uncertain times. The company has increased its lending to enterprises in emerging sectors like the manufacturing of personal protective equipment (PPEs) and agricultural food production, which have shown resilience and growth amidst the crisis. Additionally, Equity Group has implemented measures to accommodate struggling clients, including restructuring loans and providing repayment flexibility to help businesses navigate the economic repercussions of the pandemic. The CEO highlighted the importance of fostering strong relationships with clients and offering support to ensure their survival and eventual recovery. As the global economy continues to grapple with the effects of COVID-19, Equity Group remains committed to adapting to the new business landscape and providing sustainable solutions for its diverse customer base.