Equity Group has posted a 14{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} profit after tax growth in the financial results for the year ended 31st December 2019. The Group has posted Kshs 22.6 billion from Kshs 19.8 billion in 2018, driven by a 23{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} growth in loan book to Kshs 366.4 billion from Kshs 297.2 billion in 2018.
The growth in loan book, saw the Group balance sheet register a 17{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} growth to reach Kshs. 673.7 billion up from Kshs 573.4 billion funded by a growth in customer deposits of 14{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, shareholders funds of 18{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} and a 26{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} growth of long-term borrowed funds.
Speaking during the release of the Group’s results Dr. James Mwangi, Managing Director and CEO said, ‘Execution of the Group’s business strategy continued to yield results as non-funded income contributed 40{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} of the Group’s total income reflecting quality and diversification of income. Success in our regional expansion and business diversification saw subsidiaries contribution to Group profit after tax rise to 18{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} up from 15{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} the previous year.”
Return on average equity (RoAE) from subsidiaries grew to 16.9{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} up from 13.3{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}. Subsidiaries assets accounted for 27{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} of the Group’s total assets while their profit after tax contribution grew to 18{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} of Group’s profits up from 14{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} in 2018. Improved efficiencies at the subsidiaries saw their cost structure contribution to the Group improve to 35{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} from 37{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} in 2018.