Equity group posts Sh46.5 billion after tax net profit for 2024
The Group’s total deposits grew to Sh1.4 trillion, with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise.
Equity Group shareholders will receive a Ksh 4.25 dividend payout after it recorded a 10.8 per cent profit increase for the financial period that ended December 31 last year.
This is a rise of 0.25 per cent over the same period the previous year as the Group recorded a total payout rise to Sh16 billion from Ksh 15.04 billion in 2023.
The net profit after tax by the bank was Ksh 46.5 billion as they slashed the loan provision by 43 per cent to Ksh 20.2 billion as their stock of gross non-performing loans went up by 6.5 per cent to Ksh 122 million.
The Group’s total deposits grew to Ksh 1.4 trillion, with the customer base growing to 21.6 million, showcasing the scale and reach of the deposit franchise.
The lender’s liquidity position remained strong, with cash and cash equivalents rising by 19 per cent to Sh345 billion, while investment securities grew to Sh512 billion, contributing to an overall liquidity ratio of 57 per cent.
The net profit of the bank in interest expenses jumped to Ksh 61.6 billion with regional subsidiaries performing better than Kenya.
The regional subsidiaries raised their net profit from 41 per cent in 2023 to 50 per cent in 2024 while the Kenyan net profit dropped by 9.7 per cent to Ksh 24.1 billion in the year under review from Ksh 26.7 billion in the previous year.
“Due to the global operating environment characterized by unprecedented geopolitical shifts, the Group’s defensive and prudent approach to risk management was evident in its loan loss provisions, which amounted to Ksh 20.2 billion. The Non-Performing Loan ratio remained below the industry average at 12.2 per cent, significantly lower than the 16.4 per cent published industry average,” the Group said in a statement.
With the Kenyan being weighed down by 54 per cent in interest expense on customer loans, Group Chief Executive Officer and Managing Director James Mwangi says their capital position remains strong and they’ll continue supporting their customers.
“We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape. The Group’s liquidity and capital position remain strong, positioning us to better support our customers in the years ahead,” he stated.
