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Equity Group has announced impressive financial results for the first quarter of 2023. Despite a challenging macroeconomic environment, the group achieved a 21% growth in total assets, reaching Kshs.1.54 trillion, and an 8% growth in profit after tax, totalling Kshs.12.8 billion.
These results reflect the Group’s resilient performance and its commitment to customer experience, product innovation, and regional expansion.
Record Growth in Total Assets and Customer Deposits
Equity Group’s total assets grew by 21% to Kshs.1.54 trillion, driven by a 23% increase in customer deposits, which reached Kshs.1,111.2 billion.
The growth in customer deposits fueled a 21% expansion of the loan book, amounting to Kshs.756.3 billion. This growth showcases the Group’s strength and the trust it has built among its customers.
Regional Expansion and Diversification Strategy
Equity Group’s regional banking subsidiaries and non-banking businesses contributed significantly to its success, with a nearly 50:50 split between the Kenya business and regional operations.
The regional and non-banking segments accounted for 45% of total assets, 47% of total deposits, 41% of loans, 50% of gross revenue, and 47% of profit after tax. This diversification strategy has enabled the Group to become a truly regional and diversified business.
Embracing Digital Transformation
Equity Group demonstrated its digital prowess with a strong focus on digital transactions and payments. Digital transactions grew by 23.3% to Kshs.2,288.8 billion, while digital payments surged by 171% to Kshs.54.2 billion.
The Group’s successful rollout of the Pay with Equity (PwE) platform and investments in mobile and internet banking contributed to this impressive growth. Furthermore, 96% of all transactions are now conducted on third-party and self-service platforms, highlighting the increasing digitization of banking services.
Financial Sustainability and Social Impact
Equity Group’s commitment to sustainability and social impact is evident through its various initiatives. The Group has invested in financial inclusion, entrepreneurship training, healthcare access, environmental sustainability, and social safety nets for marginalized populations.
Equity Group Foundation, the Group’s social arm, has provided scholarships to 40,000 high school students, supported millions of farmers and households, opened medical centres, and facilitated the planting of 21.8 million trees.
These efforts showcase the Group’s dedication to making a positive difference in the communities it serves.
Strong Financial Position
Equity Group maintains a strong and agile balance sheet, with cash holdings constituting 17% of total assets and government securities and cash accounting for 43%.
The Group’s NPL ratio of 9.1% is lower than the industry average of 14%, and it boasts a robust NPL coverage of 88%. Additionally, capital buffers remain high, surpassing regulatory requirements.
Outlook
With its solid financial position, strong brand reputation, digital capabilities, and strategic growth plans, Equity Group is well-positioned for continued success.
The Group aims to leverage its defensive and offensive strategies, which include mergers and acquisitions, organic growth, and further investments in technology and innovation.
Equity Group’s exceptional financial performance in Q1 2023 reflects its resilience, commitment to customers, and strategic initiatives. With its focus on digital transformation, regional expansion, and social impact, the Group is poised to lead in the ever-evolving financial landscape while maintaining its position as an industry leader.
