Equity bank. Subsidiaries’ net profits grew by 37 per cent to Shs107.3b
compared to Equity Bank Kenya’s growth of 3 per cent to Shs473b. FILE
PHOTO
Nairobi. Equity
Group chief executive director James Mwangi is counting on relative
calm in neighbouring countries and increased investments to push the
share of subsidiaries’ profit to at least a fifth of the group’s
performance this year.
Mr Mwangi said subsidiaries in Tanzania, Uganda and the DR Congo are set for stronger performance in 2018, pushing their share of profits in the group from 18 per cent to between 20 and 25 per cent.
“The region is depicting a strong economic growth outlook. Our group’s strategy of regional and business diversification has resulted in a double-digit growth across the subsidiaries by September,” Mr Mwangi said during the release of the bank’s third quarter results last week.
In the nine months ending September, all the five subsidiaries posted double-digit percentage growth, pushing their contribution to the group’s net profit from 14 per cent in the third quarter of last year to 18 per cent.
Subsidiaries’ net profits grew by 37 per cent to Shs107.3b compared to Equity Bank Kenya’s growth of 3 per cent to Shs473b.
According to Mr Mwangi, rate cap laws in Kenya had slowed growth but offered the group an opportunity to target the region with key investments.
“The performance gives us the confidence to explore other opportunities to buttress our unique offering across the region. The subsidiary businesses have shown resilience and we believe they have more headroom for growth across board,” he said.
During the period under review, subsidiaries’ loan book moved from 22 to 25 per cent or Shs2.67 trillion.
Lending in Uganda grew by 42 per cent to Shs643b followed by Rwanda (40 per cent to Shs514b) and DRC at 19 per cent to Shs888b.
The DR Congo subsidiary grew its bottom-line faster than any other more than doubling its net profit to Shs22.2b due to increased investment in branch network and growth in customers.
The group has rolled out the EazzyBanking suite of digital solutions in Uganda, Rwanda and Tanzania as it targets more customers at digital touch points.
The lender targets to make subsidiaries contribute 40 per cent of overall profitability within the next five years.
editorial@ug.nationmedia.com
Mr Mwangi said subsidiaries in Tanzania, Uganda and the DR Congo are set for stronger performance in 2018, pushing their share of profits in the group from 18 per cent to between 20 and 25 per cent.
“The region is depicting a strong economic growth outlook. Our group’s strategy of regional and business diversification has resulted in a double-digit growth across the subsidiaries by September,” Mr Mwangi said during the release of the bank’s third quarter results last week.
In the nine months ending September, all the five subsidiaries posted double-digit percentage growth, pushing their contribution to the group’s net profit from 14 per cent in the third quarter of last year to 18 per cent.
Subsidiaries’ net profits grew by 37 per cent to Shs107.3b compared to Equity Bank Kenya’s growth of 3 per cent to Shs473b.
According to Mr Mwangi, rate cap laws in Kenya had slowed growth but offered the group an opportunity to target the region with key investments.
“The performance gives us the confidence to explore other opportunities to buttress our unique offering across the region. The subsidiary businesses have shown resilience and we believe they have more headroom for growth across board,” he said.
During the period under review, subsidiaries’ loan book moved from 22 to 25 per cent or Shs2.67 trillion.
Lending in Uganda grew by 42 per cent to Shs643b followed by Rwanda (40 per cent to Shs514b) and DRC at 19 per cent to Shs888b.
The DR Congo subsidiary grew its bottom-line faster than any other more than doubling its net profit to Shs22.2b due to increased investment in branch network and growth in customers.
The group has rolled out the EazzyBanking suite of digital solutions in Uganda, Rwanda and Tanzania as it targets more customers at digital touch points.
The lender targets to make subsidiaries contribute 40 per cent of overall profitability within the next five years.
editorial@ug.nationmedia.com
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