Zachary Ochuodho @PeopleDailyKe
Equity Group’s regional units and interest income contributed immensely to the bank’s profitability, which grew by eight per cent for the first nine months of this year.
The regional subsidiaries recorded double-digit growth with an increased profit contribution profit before tax of 18 per cent from 14 per cent. Interest income rose nine per cent to Sh38.5 billion
Non-funded income and increased diaspora remittances also contributed to the group’s after tax profit of Sh15.8 billion for the period that ended September 30 compared to Sh14.6 billion realised in a similar period last year.
According to Equity Group’s chief executive officer, James Mwangi, Uganda’s profit before tax grew by 35 per cent, Rwanda (70 per cent), Democratic Republic of Congo (117 per cent) and South Sudan (53 per cent).
Mwangi said the growth witnessed in Democratic Republic of Congo was overwhelming adding that if it continues with the same pace, it may overtake Kenya in just two years. Currently, Kenyan operations contributes most of the profits.
He said following execution of 3.0 strategy, the bank’s digital suite of self-service tools known as Eazzy has also continued to pay off.
Diaspora remittances rose by 282 per cent to Sh57 billion from Sh15 billion due to increased strategic partnership with payment partners including PayPal, Equity Direct, Western Union, MoneyGram, Wave and Swift.
Speaking yesterday during an investors’ briefing, Mwangi said non-funded income contributed 40 per cent of the profits.
Profit before tax grew from Sh20.7 billion to Sh22.4 billion, registering a growth of eight per cent.
“Third-party channels reported an exponential growth of customer activity, contributing more than 97 per cent of transactions volume. Eazzy Banking transactions grew by 208 per cent to 168 million from 55 million per every year and a value of Sh89 billion from Sh55 billion year on year,” Mwangi said.