Equity Bank records 14pc rise in profits
Zachary Ochuodho @zachuodho
Increased non-funded income contributed to Equity Group’s after tax profit of Sh22.6 billion—a 14 per cent rise for the period ended December 31, 2019 from Sh19.8 billion in a similar period in 2018.
Speaking during investors briefing, Equity Group managing director and chief executive James Mwangi said non-funded income contributed 40 per cent of the group’s total income reflecting quality and diversification of income.
Following a 14 per cent growth in earnings per share of Sh5.93 up from Sh5.22 during the period, the board of directors has proposed a 25 per cent enhanced dividend payout of Sh2.5 up from Sh2 per share.
Mobile banking
According to Mwangi, the business model continues to evolve from a fixed to a viable cost business model leveraging off variable cost third party infrastructure principally mobile, internet, agency and merchant banking.
“About 97 per cent of all its transactions happened outside the branch, while 93 per cent of all loan transactions are via the mobile channel. The group registered enhanced efficiency and cost optimisation with cost-income ratio improving to 51 per cent from 52.4 per cent in 2018,” he said.
