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Equity Group Holdings Plc (EGH) has once again demonstrated its resilience in a challenging economic landscape. Against the backdrop of high interest rates and volatile exchange rates, EGH reports impressive half-year results. Here are the key highlights:
- Robust Balance Sheet Growth:
- Total assets increased by 6% to Kshs 1.75 trillion.
- Deposits grew by 11% to Kshs 1.3 trillion.
- Regional subsidiaries contributed significantly, accounting for 49.7% of total assets.
- Profit After Tax Surge:
- Half-year profit after tax rose by 12% to Kshs 29.6 billion.
- Regional businesses played a pivotal role, contributing 50.2% of profit before tax.
- Liquidity and Capital Strength:
- Cash and cash equivalents increased by 55% to Kshs 341 billion.
- Shareholders’ funds strengthened by 13% to Kshs 220 billion.
- Core capital ratio stands at 15.8%, well above regulatory thresholds.
- Diversification and Innovation:
- EGH received a General Insurance license, expanding its product offerings.
- The Group’s extensive branch network and digital channels continue to serve millions of customers.
- Sustainability and Impact:
- EGH’s commitment to sustainability includes climate action and nature restoration.
- The Equity Leaders Program (ELP) provides scholarships to talented students, fostering education and empowerment.
Equity customers should look forward to more friendly borrowing rates. 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, signalled 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.”
