Equity Bank Group has reported an 18 per cent rise in after-tax profit for the six months to June largely on increased interest earnings and cost management measures.
Equity’s net profit increased to KSh11 billion (UShs410bn) from KSh9.4 billion (UShs354.2bn) , the country’s largest lender by market value said.
The lender’s net interest income climbed 9 per cent to KSh19.6 billion (UShs730.8bn) from KSh17.9 billion (UShs 667.5bn) in the same period of 2016 as the impact of the September 2016 legal ceilings on loans wanes.
Loans to customers expanded by a marginal 4 per cent to KSh275 billion (UShs10.2 trillion) from KSh265.1 billion (UShs9.8 trillion), reflecting the lender’s continued refusal to fund risky micro enterprises and households who do not have security.
“This performance is a reflection of diversification of our revenue sources,” the group’s managing director James Mwangi told an investor briefing at the bank’s headquarters in Upper Hill, Nairobi.
Customer deposits increased 9 per cent to KSh393.7 billion (UShs14.6trillion) from KSh362.8 billion (UShs13.5 trillion) a year earlier.
Total operating costs dropped by 2 per cent to KSh17.3 billion (UShs644.5bn) from Sh17.6 billion (UShs655.7bn).