Equity Group Holdings reported a 5.3% increase in its profit after tax (PAT) for the third quarter of 2023, reaching KES 36.2 billion.
The growth was attributed to a 21.3% rise in net interest income, which reached KES 72.6 billion, as well as a 19.9% increase in customer deposits, which amounted to KES 1.2 trillion.
The group’s assets grew by 24.0% year-on-year, reaching KES 1.7 trillion, while its loan book expanded by 25.5%, reaching KES 845.9 billion.
The group’s loan-to-deposit ratio improved from 66.4% in Q3 2022 to 68.8% in Q3 2023, indicating a higher efficiency in lending.
However, the group also faced some challenges, such as a surge in gross non-performing loans (NPLs), which rose by 83.5% to KES 124.5 billion, representing 14.7% of the total loan book.
The group increased its provisions for bad debts by 96.6% to KES 18.9 billion, reflecting a cautious approach to managing credit risk. The group’s earnings per share (EPS) grew by 3.7% to KES 9.17, slightly lower than the PAT growth rate.
The group’s CEO, Dr James Mwangi, attributed the performance to the group’s resilience, innovation, and diversification, as well as its strong regional presence and digital transformation.
“Despite the current economic turbulence, the Group has maintained & preserved its balance sheet in an exceptionally agile state demonstrating a high degree of flexibility to seize opportunities & promptly respond to shifts in the macro environment.”