Equity Bank shows customer growth, a jump in mobile money platform

by Elayne Wangalwa 0

Equity Group Holding Limited has announced an 18 per cent pretax growth for its full year results.

For the period ended 31 December 2014, the group reported that its profit buoyed by an increase in diversification of income streams stood at 22.4 billion Kenyan shillings from 19 billion Kenyan shillings recorded in a similar period last year. This positive performance has also been attributed to the lender’s Equity 3.0 strategy that began last year and will run until 2024.

“Our 3.0 strategy is working well, we are leveraging technology and innovation and this is reflecting well in our results,” Equity CEO James Mwangi said.

Present in five countries, the subsidiaries registered a total of 35.4 billion Kenyan shillings in interest income, this was an 11 per cent rise.

The lender has also seen an increase in its customer numbers to 9.7 million maintaining its position as Kenya’s largest financial institution by customer base and enabled Equity to increase funding.

Equity’s assets base grew by 24 per cent growth to 344.6 billion Kenyan shillings largely driven by a 62 per cent rise in its loans and advances to customers.

Listed on the Nairobi and Uganda Securities Exchanges and recently on the Rwanda Stock Exchange, the financial provider reported that its non-funded income grew by 20 per cent year-on-year due to growth in its loan book and alternative business channels. 

“Tanzania contributed 4.3 per cent to the loan book and it was the best performing subsidiary followed by Rwanda at 2.9 per cent,” Mwangi noted.

Meanwhile, the lender which was allowed last year to deploy its mobile phone banking and cash transfer service over a one-year trial period has said Mobile Virtual Network Operator (MVNO) services are growing. Their MVNO service, dubbed Equitel, has led to a 35 per cent increase to the group’s compounded average growth rate (CAGR) in mobile banking customers.

“We expect to see significant achievement of Equitel in the group’s quarter one (Q1) results and we are confident about this performance…We are confident we will reach a break even tie, hopefully when we launch Equitel,” Mwangi said.

According to Mwangi, since its introduction in September, Equitel has recorded 400,000 users from a mere 38 subscribers and 5.5 million transactions as of December.