Equity Group has reported an eight percent growth in profit after tax for the third quarter ending September 2018 to reach Ksh15.8 billion up from Ksh14.6 billion in 2017.
The Group now has a liquidity ratio of 55 per cent with non-funded income contributing 40 per cent, subsidiaries contribute 18 per cent of earnings while costs have declined by four per cent to Ksh26.9 billion from Ksh28.0 billion over the past one year.
The group reported differentiated revenue growth of one percent to Ksh49.3 billion up from Ksh48.7 billion. Non-funded income held strong to reach Ksh19.8 billion driven mainly by remittance commissions, trade finance, agency and credit card fees and commissions.
Third-party channels contributed over 97 per cent of transaction volume. Eazzy Banking App grew by 208 per cent to 168 million transactions from 55 million and a value of Ksh89 billion from Ksh52 billion.
Eazzy Biz, which is a cash management solution for SMEs had a rapid adoption in the market that resulted in a growth of 148% with a transaction value of Ksh187.3 billion from 90.9 billion.
Transaction volumes through branches declined from Ksh14.4 million to Ksh13.5 million as customers preferred to transact on the self-service channels.
Equitel’s transaction value grew by 20 per cent to Ksh425.1 billion up from Ksh353.6 billion despite a slight decline in transaction volumes to 185.4 million from 197.1 million.
Diaspora remittances grew by 282 per cent to Ksh57 billion from Ksh15 billion the previous year.
Income from treasury operations increased by 18 per cent to Ksh15.7 billion from Ksh13.2 billion, driven by an increase in government securities portfolio to Ksh159 billion from Ksh128 billion and increasing its contribution to the total income to 27 per cent.
From subsidiaries outside the country, profit contribution from Uganda grew by 35 per cent, Rwanda by 70 per cent, DRC by 117 per cent and South Sudan by 53 per cent.
Total assets grew by 8 per cent to Ksh560.4 billion up from Ksh518.2 billion with net loans growing by 9 per cent to Ksh288.4 billion up from Ksh265.4 billion while government securities grew by 24 per cent to Ksh159 billion up from Ksh128 billion.
Deposits grew by 9 per cent to Ksh402.2 billion from Ksh368.8 billion as the number of customers reached 12.7 million.
The management attributes the growth to diversified revenue streams, geographic expansion and structural efficiency gains that enabled it to weather the effects of interest rates capping.
Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to [email protected] Also WhatsApp 0708677607 with your news tips