Equity Bank rakes in Sh7.7bn profit for six months

Equity Bank chief executive James Mwangi during an investor briefing at the bank's offices in Nairobi on July 30, 2014. PHOTO | DIANA NGILA  NATION MEDIA GROUP

In Summary

• The bank’s loan book increased by 24 per cent to Sh187 billion, up from Sh151 billion last year.
• Customer deposits grew to Sh216 billion, up from Sh185 billion last year while the net interest income increased by six per cent to Sh14.02 billion.

By NATION CORRESPONDENT
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Equity Bank has posted a 21 per cent increase in profit after tax for the first six months of 2014, as performance in non-funded income grows.

 

The lender’s after-tax earnings hit Sh7.66 billion, up from the Sh6.30 billion recorded over a similar period last year.

Non-funded income rose by 19 per cent, driven mainly by payments processing income, which grew by 58 per cent.

Diaspora banking and remittances processing also went up by 23 per cent.

“The positive performance is due to strong fundamentals as well as an improved micro-economic and investment environment which has renewed economic confidence in the region,” Equity Bank chief executive James Mwangi said on Wednesday during an investor briefing in Nairobi.

Going forward, the bank said it was counting on the impending rollout of its mobile network service to increase the growth pace.

The lender said the innovative technology used on its thin SIM, if approved by the Communication Authority of Kenya, would revolutionise mobile banking, money transfer as well as mobile communication.

“If the regulator clears the matters raised by competition (Safaricom) today, we roll out the next day since all the systems are in place,” Mr Mwangi said.

The bank’s loan book increased by 24 per cent to Sh187 billion, up from Sh151 billion last year.

Customer deposits grew to Sh216 billion, up from Sh185 billion last year while the net interest income increased by six per cent to Sh14.02 billion