Equity Group Holdings (EGH) Ltd posted 36 percent growth in net profit for the three months to March 31, 2022.
The lender, which is listed on the Nairobi Securities Exchange (NSE), attribute the performance largely to growth in both interest and non-interest income and increased earnings contributions from regional subsidiaries.
The bank grew its profit after tax (PAT) to Ksh11.9 billion ($102.58 million) from Ksh8.7 billion ($75 million) in the same period last year, with regional units growing their contributions to the bottom-line to 30 percent ($31.03 million) from 21 percent ($16.37 million).
The bank has presence in six countries including the Democratic Republic of Congo (DRC), Kenya, Uganda, Tanzania, South Sudan and Rwanda, and a representative office in Ethiopia.
According to the Group’s unaudited financial statements released on Thursday, operating income grew by 21 percent to Ksh30.9 billion ($266.37 million) from Ksh25.5 billion ($219.82 million), while total costs increased by 13 percent to Ksh15.6 billion ($134.48 million) from Ksh13.8 billion ($118.96 million) in the same period.
Net interest income grew by 31 percent to Ksh19.4 billion ($167.24 million) from Ksh14.8 billion ($127.58 million) while non-funded income grew by seven percent to Ksh11.6 billion ($100 million) from Ksh10.7 billion ($92.24 million).
The lender increased its investment in government securities by 50 percent to Kshs.389.4 billion ($3.35 billion) from Ksh.258.9 billion ($2.23 billion)
Loan book increased by 28 percent to Ksh623.6 billion ($5.37 billion) from Ksh487.7 billion ($4.2 billion) while total deposits grew by 14 percent to Ksh900.9 billion ($7.76 billion) from Ksh790.6 billion ($6.81 billion).
Loan loss provision grew by 25 percent to Ksh1.4 billion ($12.06 million) from Ksh1.1 billion ($9.48 million).
The Group’s total assets grew by 19 percent to Ksh1.26 trillion ($10.86 billion) from Ksh.1.06 trillion ($9.13 billion).
Equity Bank is positioning to reap from increased business in the DRC after Kinshasa signed the accession treaty as the seventh member of the EAC regional bloc.
The lender is working towards boosting its business and market share in DRC by funding and facilitating payments for the expected increased number of investors and traders between the two countries.
DRC imports over $2 billion worth of basic commodities, with Kenyan investors looking to tap into this space.
Other than minerals, the DRC has a vibrant agricultural sector and is also heavily involved in cosmetics and textiles and the service industry.