Equity Group Holdings has registered a 12% growth in profit after tax to Kshs. 29.6 billion for the period ended 30th June 2024 compared to a similar period last year.
Deposits grew by 11% to Kshs. 1.3 trillion up from Kshs. 1.2 trillion while total assets grew by 6% to Kshs. 1.75 trillion up from Kshs. 1.64 trillion. Regional businesses contributed 49.7% of total assets and 50.2% of profit before tax for the period. The Group also diversified with the receipt of a General Insurance license and recorded highest market capitalization in Sub-Saharan Africa.
Equity Group Holdings Plc (EGH) continues to demonstrate resilience, recording a balance sheet growth of 6% which is above the prevailing inflation rate of 4%, bringing its total assets as at 30th June 2024 to Kshs.1.75 trillion with the regional subsidiaries accounting for 49.7%.
The Group, which has been named as the top financial brand in Africa and the 2nd Strongest Banking Brand in the world and backed by its motto of ‘’Growing Together in Trust’’ has seen its deposit franchise grow 11% year on year to Kshs.1.3 trillion with its customer base now at 20.7 million. This growth in deposits has resulted in a 55% increase in cash and cash equivalents to Kshs.341 billion and growth in investment securities to Kshs.459 billion resulting in an overall strong liquidity position of 57%.
While releasing the half year results, Dr. James Mwangi Equity Group Holdings Managing Director and Chief Executive Officer said “We are optimistic that the strong liquidity of the Group has positioned us to effectively support our customers as the economy starts showing signs of improvement in the key markets we operate in, signaled by some of the regulators’ reduction of the Central Bank Reference rates. With the improved liquidity, the Group continued to optimize its balance sheet reducing leverage by Kshs.75 billion of expensive borrowings,”
Shareholders’ funds grew by 13% to Kshs.220 billion strengthening the Group’s ability to underpin the private sector led Africa Resilience and Recovery Plan (ARRP) by investing in new subsidiary undertakings in the Insurance Group as well as positioning it well to continue to take advantage of any market opportunities similar to the acquisition made in Rwanda in 2023.
The Group recorded a half-year Profit after Tax of Kshs.29.6 billion representing a 12% year on year growth, with earnings per share increasing to Kshs.7.6 up from Kshs. 6.7. Regional subsidiaries accounted for 50.2% of the profit before tax for the period. This performance is coupled by strong capital buffers with core capital ratio of 15.8% and total capital ratio 18.4% versus regulatory threshold of 10.5% and 14.5% respectively.
“We are proud that the Group has sufficient cushion on its key balance sheet buffers being liquidity, capital and NPL coverage while at the same time it continues to report above industry profitability metrices with return of average equity of 26.7% and return on average assets of 3.4%,’’added Dr. Mwangi.
