…as DRC emerges as the most profitable with growth in Profit after Tax of 194%.
Nairobi, Wednesday 07th November 2018… Equity Bank regional subsidiaries continued to post impressive financial performance with the five banking subsidiaries posting double digit growth collectively contributing a profit after tax of 18% up from 14% during the same period last year.
Equity Bank Congo, outpaced its peers to emerge as the most profitable subsidiary to post a Profit after Tax of 194%, a feat attributed to increased investment in the branch network and growth in customers. This saw the subsidiary record 41% growth in deposits to Kshs. 41.7Bn, 19% growth in loans to Kshs. 24Bn and 30% growth in assets to Kshs. 53.7Bn.
Speaking during the release of the 2018 Q3 Financial Results, Equity Group Managing Director and CEO Dr. James Mwangi noted that the impressive performance of the subsidiaries validates the Group’s decision to diversify its financial offering within the East and Central African region giving the residents in this region a chance to bank with Equity Bank.
“Our Group’s strategy of regional and business diversification resulted in a double-digit growth across the subsidiaries with an increased contribution of PBT of 18% from 14% during the same period in 2017. Our efforts saw Rwanda post a profit after tax of 70%, followed by Tanzania at 39%, Uganda at 29% and South Sudan closing at 15%. The performance gives us the confidence to even explore other opportunities to buttress our unique offering across the region,” Dr. Mwangi said.
The bank has rolled out the EazzyBanking suite of digital solutions in Uganda, Rwanda and Tanzania as part of a deliberate move to become the region’s leading digital bank, delivering a remarkable client experience in key digital touch points. This is expected to boost the bank’s vision of making the subsidiaries to contribute 40% of the overall bank profitability within the next five years.
“The challenging regulatory environment in Kenya occasioned by the implementation of the rate caps has offered as an opportunity to further spread our wings across the region with key investments. From their financial performance, the subsidiary businesses has shown resilience and we believe they have more headroom for growth across board.” Dr. Mwangi added.
The Group will continue to invest in improved operational efficiency, alternative channels and increased lending to support business growth. The launch of agency banking model in Uganda (Equiduuka), Rwanda, DRC and Rwanda is one of the key deliberate moves that the Group has replicated within the region for improved performance.