Equity bank almost doubled its 2021 full year profit after posting a 98 per cent rise in net profit for the year to Ksh. 39.2 billion previously.
The bank’s profitability rise is attributed to higher income with total operating income rising by 21 per cent to Ksh.113.4 billion from 93.7 billion.
According to the bank, growth in operating income has been supported by a 24.9 per cent in net interest income to Ksh. 68.8 billion from Ksh 55.1 billion a year prior.
The bank said Non-interest funded income (NFI) has also increased by 15.8 per cent to Ksh. 44.6 billion from Ksh. 38.5 billion in 2020.
The lender at the same time has shed its overall costs by 15.4 per cent to Ksh. 61.5 billion from Ksh. 72.7billion.
The profitability comes as the Company’s asset base tops Ksh. 1.3 Trillion from a flat Ksh. 1 trillion a year ago on the back of its acquisition of DRC’s Banque Commerciale Du Congo (BCDC).
The Equity bank’s balance sheets comprises Ksh. 587.8 billion in net loans and advances to customers and Ksh.959 billion in customer deposits.
Equity Group Managing Director James Mwangi said the set of results mirror the the bank’s resilience amidst the volatile operating environment over the past two years.
“Our greatest lesson has been not running off amidst uncertainty. COVID or no COVID, we were never going to deviate from the true North. We have realised that the purpose is profitability,”
Equity group has also resumed dividend payouts after a two year hiatus with with its board of directors recommending a record shareholder pay out of Ksh. 3 per cent share to be paid on or before June 30.
The equity group earnings per share now stands at Ksh. 10.38 billion from Ksh. 5.24 billion in December 2020.
According to Mwangi, They are confident that the the strategy will take them back to their previous path where they posted a 10 fold growth.
“When we look at the future, we are confident that our new strategy will take us back to our previous path where we posted a 10 fold growth on all parameters very five years,” Mwangi said.