Equity Bank half year net profit up 17pc

 

Equity Bank has posted a 17 per cent growth in half year profits after tax driven by growth in loan book accompanied by mobilisation of cheap deposits. FILE 

By GEORGE NGIGI

Equity Bank has posted a 17 per cent growth in half year profits after tax, driven by growth in loan book and mobilisation of cheap deposits.

The bank on Monday reported an after tax profit of Sh6.2 billion compared to Sh5.3 billion an year earlier.

This followed a 21 per cent growth in its credit advances to Sh150 billion accompanied by mobilisation of cheap deposits leading to net interest income of Sh13.2 billion compared to Sh11.2 billion in June last year.

The bank deposit base stood at Sh184 billion up from Sh151 billion an year ago.

The bank's management is hopeful that with improved macro-economic environment following peaceful conclusion of the elections it will sustain the growth in the second half of the year.

“An improved trading environment, diversification of the bank’s portfolio along with strategic global and local partnerships, regional expansion and increase in the number of agents will drive growth and deepen the banks penetration in the market,” said the chief executive James Mwangi.

The banks share at the Nairobi Securities Exchange had seen increased activity last week as investors took positions while awaiting its results.

Equity Bank traded 8.86 million shares last week, and was the top mover in the market on Friday alone with 1.52 million shares traded. The stock has gone up 6.35 per cent in the last month closing the week at Sh33.50.