Financial Results

EQUITY GROUP ASSETS GROW BY 14% TO SURPASS THE HALF A TRILLION MARK AND DELIVERS KSHS 13.3 BILLION IN PRE-TAX PROFIT
 
The growth in assets is attributed to the Bank’s innovative, diversified, and transformative business model against the backdrop of a challenging operating environment. 
 
Nairobi, August 22nd 2017……  Equity Group Holdings Plc posted a 14% growth in assets to reach Kshs 504.9B up from Kshs 444.4B for the period ended 30th June 2017. This was largely driven by growth in deposits which went up by 13% to Kshs.363.6B up from Kshs 320.8B in the same period last year. This growth comes at a time when the banking industry growth rate has almost flattened out.
 
The Group’s deposit mobilization was boosted by growth in customer numbers which reached 11.7 million, a keen focus in adoption of the alternate delivery channels that include the Eazzy banking suite of products, agency banking model, mobile banking, and internet banking.
 
Equity’s superior performance enabled it to achieve a pre-tax profit of Kshs 13.3B for the period ended 30th June 2017. This was in part due to increased revenue from non-interest income and growing regional banking subsidiaries’ contribution to profits before tax. This saw the Group outperform the industry to register a Return on Equity of 22.3% and a Return on Asset of 3.8% despite a 12% reduction in interest income.
 
Speaking during the Investor Briefing, Equity Bank CEO, Dr. James Mwangi said "The Group's business continues to demonstrate resilience. 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. Innovation has proved to be a great enabler in driving growth. We are already registering efficiency gains from digitization.”  
 
The Group continued to evolve its business model to weather the interest capping effects by focusing on growing the non-funded Income which constitutes 42% of the Group’s total income. This grew from Kshs. 10.8B to Kshs. 13B representing a 20% rise from the same period last year.  This was mainly driven by mobile banking commissions which grew by 337% to Kshs.649.7M from Kshs 148.8M. Trade Finance grew by 25% to hit Kshs 532.8M from Kshs 426.3M, Merchant commissions grew by 12% to Kshs 579.6M from Kshs 519.4M while Agency revenue grew by 27% to Kshs 424.5M up from Kshs. 333.8M in the same period last year. The Group also reaped benefits of regional diversification and saw the regional banking subsidiaries’ contribution to the Group’s pre-tax profit double from 5% to 10% with Uganda PBT growth of 139%, Rwanda 75%, Tanzania 55%, and DRC 20%.
 
Through cost optimization the Group continues to transform its cost structure especially on the delivery channels from fixed to variable cost channels with the bulk of transactions being processed via mobile, agency and merchants’ outlets. This has led to a cost income ratio of 44.5% for Kenya. The Group’s total costs reduced to Kshs. 17.6B down from 17.9B for the same period last year. Equitel platform Group's MVNO banking transactions grew by 42% to 138.7M from 97.8M, Agency banking transactions grew by 10% to 33M from 29.9M while merchants transactions grew by 20% to 5.3M from 4.4M for the period under review showing the customers growing preference of alternate delivery channels.
 
The Group's consistent pursuit of a sustainable business model that is heavily focused on innovation has seen Equitel market share grow to nearly 25% of the value of mobile banking transactions in Kenya.  The successful implementation of the digitization strategy is bearing fruits with Eazzy Banking products demonstrating a phenomenal uptake. EazzyBiz has hit Kshs11.1B per month in value of transactions, EazzyPay is moving Kshs 319.5M per month and now accounts for 30% of the mobile commerce market share, and EazzyBanking App’s transactional value stands at Kshs 6.5B per month after only six months of launch. 
The Group also continues to concentrate on Asset Quality that has seen it achieve NPLs of 7.3% against an industry average of 9.9%. It has positioned itself for the future by increasing its liquidity to 54% and creating an agile balance sheet with government securities contributing 23% of the total balance sheet.  
 
These results have been achieved during a very challenging period when inflation has been high above the target for the operating period. The Kenya shilling depreciated against the US Dollar from USD-KES 101.1 in H1’2017 to close at USD-KES 103.7 driven by increased food and oil imports. Interest rate was also capped by law at a maximum of 14% for loans and a minimum of 7% on deposits. Private sector credit in Kenya declined from a 18% high at the beginning of 2016 to almost 0% to date. The GDP growth projected by IMF and World Bank has reduced from 5.8% to 5.4%. In the social and political environment, there was uncertainty due to the general elections. 
 
The Group’s performance is validated by the ranking by the Banker as the 37th Most Solid Bank of the Top 1000 large banks in the world and ranked 11th on Return in Assets. Moody’s Investor’s Service in its latest assessment assigned Equity Bank Kenya first time ratings with a stable outlook based on the Bank’s strength. The global local currency rating captured the Bank’s strong credit profile which is closely aligned with the B1 (stable) rating of the Kenyan government due to the Bank's strong brand recognition, solid liquidity buffers and resilient funding profile, established domestic franchise and extensive adoption of digital and alternative distribution channels. At the same time, Moody’s has assigned a national scale rating of Aa1 which ranks Equity Bank Kenya the best credit rated bank in Kenya.
 
Equity Bank was also awarded Super brand status in 2017 for the 10th year in a row by Super Brands East Africa. A recognition which the financial institution owes to its loyal customers as well as shareholders.  This affirms the Bank’s commitment to offering customer focused products and services to its diversified clientele base. 
 
According to the latest Global Credit Rating, Equity maintained its investment grade AA- with a stable outlook. Euromoney Awards of excellence also named Equity as Africa’s Best Bank in 2016 and Kenya’s Best SME Bank. Going forward the Group will focus on enhancing an agile balance sheet with strong liquidity and improved asset quality, brand investment and visibility as well as digitization and innovation for increased efficiency and customer convenience. 
 
Ends.
 

For more information, please contact:

Alex Muhia

Equity Bank Group

T: 0763 618871 Office 0763 026007

E: Alex.Muhia@equitybank.co.ke

E: corporatecommunications@equitybank.co.ke

Carol Wairugu

Ogilvy Public Relations Ltd

T: 0764515797

E: Carol.Wairugu@ogilvy.co.ke

Global Credit Rating Definitions

FINANCIAL STATEMENTS

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2017

Full Year

 

Q3

 

Half Year

Equity Group Holdings Financial Statement as at 30th June 2017

Q1

Equity Group Holdings Financial Statement as at 31st March 2017

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2016

Full Year

Equity Group Holdings Financial Statement as at 31st December 2016

Q3

Equity Group Holdings Financial Statement as at 30th September 2016

Half Year

Equity Group Holdings Financial Statement as at 30th June 2016

Q1

Equity Group Holdings Financial Statement as at 31st March 2016

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2015

 Full Year Equity Group Holdings Financial Statement as at 31st December 2015
Q3 Equity Group Holdings Financial Statement as at 30th September 2015
Half Year Equity Group Holdings Financial Statement as at 30th June 2015
Q1 Equity Group Holdings Financial Statement as at 31st March 2015
 

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2014

 Full Year Equity Bank Group Financial Statement as at 31st December 2014
Q3 Equity Bank Group Financial Statement as at 30th September 2014
Half Year Equity Bank Group Financial Statement as at 30th July 2014
Q1 Equity Bank Group Financial Statement as at 31st March 2014

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2013

 Full Year Equity Bank Group Financial Statement as at 31st December 2013
Q3 Equity Bank Group Financial Statement as at 30th September 2013
Half Year Equity Bank Group Financial Statement as at 30th June 2013
Q1 Equity Bank Group Financial Statement as at 31st March 2013

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2012

 Full Year Equity Bank Group Financial Statement as at 31st December 2012
Q3 Equity Bank Group Financial Statement as at 30th September 2012
Half Year Equity Bank Group Financial Statement as at 30th June 2012
Q1 Equity Bank Group Financial Statement as at 31st March 2012

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2011

 Full Year Equity Bank Group Financial Statement as at 31st December 2011
Q3 Equity Bank Group Financial Statement as at 31st September 2011
Half Year Equity Bank Group Financial Statement as at 30th June 2011
Q1 Equity Bank Group Financial Statement as at 31st March 2011

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2010

 Full Year

Equity Bank Group Financial Statement as at 31st December 2010

Equity Bank Group Financial Results as at 30th December 2010 Presentation

Q3 Equity Bank Group Financial Results as at 30th September 2010
Half Year Equity Bank Group Financial Results as at 30th June 2010
Q1 Equity Bank Group Financial Results as at 31st March 2010

 

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2009

Q3 Equity Bank Group Financial Results as at 30th September 2009
Half Year Equity Bank Group Financial Statement as at as at 30th June 2009
Q1 Equity Bank Group Financial Statement as at 31st March 2009

 

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2008

Full Year Equity Bank Group Financial Statement as at 31st December 2008
Half Year Equity Bank Group Financial Statement as at 30th June 2008
Q1 Equity Bank Group Financial Statement as at 31st March 2008

EQUITY GROUP HOLDINGS FINANCIAL STATEMENTS 2007

Full Year Equity Bank Group Financial Statement 2007
 

INVESTOR PRESENTATIONS

Equity Group Holdings Investor Briefing 2017 Half Year Financial Results
Equity Group Holdings Investor Briefing 2017 Q1 Financial Results
Equity Group Holdings Investor Briefing 2016 Full Year Financial Results
 Equity Group Holdings Investor Briefing 2016 Q3 Financial Results
 EazzyBanking by Equity Bank
 Equity Bank rolls out digital solutions
 Equity Group Holdings Investor Briefing 2016 Half Year Financial Results
 Equity Group Holdings Update On Execution of Digital Banking June 2016
Equity Group Holdings 31st March 2016 Investor Presentation
Equity Group Holdings 31st December 2015 Investor Presentation
Equity Group Holdings 16th November 2015 Investor Presentation

Equity Group Holdings 30th September 2015 Investor Presentation

Equity Group Holdings 17th September 2015 Investor Presentation
Equity Group Holdings 30th June 2015 Investor Presentation
Equity Group Holdings 26th May 2015 Investor & Media Briefing - DRC 
Equity Group Holdings 31st March 2015 Investor Presentation
Equity Bank Group 31st December 2014 Investor Presentation
Equity Bank Group 30th September 2014 Investor Presentation
Equity Bank Group 30th July 2014 Investor Presentation
Equity Bank Group 17th April 2014 Investor Presentation
Equity Bank Group 27th February 2014 Investor Presentation
Equity Bank Group 4th November 2013 Investor Presentation
Equity Bank Group 30th June 2013 Investor Presentation
Equity Bank Group 31st March 2013 Investor Presentation
Equity Bank Group 31st December 2012 Investor Presentation
Equity Bank Group 30th September 2012 Investor Presentation
Equity Bank Group 30th July 2012 Investor Presentation
Equity Bank Group 31st March 2012 Investor Briefing Highlights
Equity Bank Group 31st December 2011 Investor Briefing Highlights
Equity Bank Group 31st March 2011 Investor Briefing Highlights
Equity Bank Group Financial Results as at 31st March 2010 presentation

ANNUAL REPORTS

Equity Group Holdings Limited 2016 Integrated Report and Financial Statements
Equity Bank Group Annual Report 2015
Equity Bank Group Annual Report 2014
Equity Bank Group Annual Report 2013
Equity Bank Group Annual Report 2012
Equity Bank Group: Annual Report 2011
Equity Bank Group: Annual Report 2010
Equity Bank Group Annual Report 2009
Equity Bank Group Annual Report 2008
Equity Bank Group Annual Report 2007
Equity Bank Group Annual Report 2006
Equity Bank Group Annual Report 2005