Equity Bank has reported a 7.25 per cent drop in net profits for the first half of 2017.
The figure has declined from Sh10.83 billion last year to Sh9.34 billion, on the backdrop of introduction of laws capping interest rates.
As a result, net interest income fell 15.5 per cent to Sh17.9 billion from Sh21.3 billion recorded in the same period last year.
Loans and advances to customers dropped slightly by 1.46 per cent to Sh265.09 billion from Sh269.03 billion.
However, customer deposits rose to Sh362.8 billion from Sh319.2 billion last year, attributed to increased customer numbers which stand at 11.7 million backed by internet, agency and mobile banking channels.
Equity Group chief executive James Mwangi announced the results at an investors’ briefing on Tuesday.
“2017 is proving to be an extension of the tough operating environment witnessed in 2016 but as a group we have already developed and adopted a sustainable business model to cushion the business as well as boost value creation for shareholders,” he said.
The bank has so far closed 11 of its automated teller machine lobbies in Kenya and sent home at least 200 of its 300 workers in South Sudan following the closure of eight of its branches in the war tone area.