NAIROBI, KENYA, NOVEMBER 7 — Equity Bank regional subsidiaries continued to post impressive financial performance with the five banking subsidiaries posting double digit growth collectively, contributing a profit after tax of 18 per cent up from 14 per cent during the same period last year.
Equity Bank Congo, outpaced its peers to emerge as the most profitable subsidiary to post a Profit after Tax of 194 per cent, a feat attributed to increased investment in the branch network and growth in customers.
This saw the subsidiary record 41 per cent growth in deposits to Ksh41.7 billion, 19 per cent growth in loans to Ksh24 billion and 30 per cent growth in assets to Ksh53.7 billion.
Speaking during the release of the 2018 Q3 Financial Results, Equity Group Managing Director and CEO Dr. James Mwangi noted that the impressive performance of the subsidiaries validates the Group’s decision to diversify its financial offering within the East and Central African region, giving the residents in this region a chance to bank with Equity Bank.
“Our Group’s strategy of regional and business diversification resulted in a double-digit growth across the subsidiaries with an increased contribution of Profit Before Tax of 18 per cent from 14 per cent during the same period in 2017. Our efforts saw Rwanda post a profit after tax of 70 per cent, followed by Tanzania at 39 per cent , Uganda at 29 per cent and South Sudan closing at 15 per cent. The performance gives us the confidence to even explore other opportunities to buttress our unique offering across the region,” Dr. Mwangi said.
The bank has rolled out the EazzyBanking suite of digital solutions in Uganda, Rwanda and Tanzania as part of a deliberate move to become the region’s leading digital bank, delivering a remarkable client experience in key digital touch points.
This is expected to boost the bank’s vision of making the subsidiaries to contribute 40 per cent of the overall bank profitability within the next five years.
“The challenging regulatory environment in Kenya occasioned by the implementation of the rate caps has offered as an opportunity to further spread our wings across the region with key investments. From their financial performance, the subsidiary businesses have shown resilience and we believe they have more headroom for growth across board,” Dr. Mwangi added.
The management has affirmed that the Group will continue to invest in improved operational efficiency, alternative channels and increased lending to support business growth.
The launch of agency banking model in Uganda (Equiduuka), Rwanda, DRC and Rwanda is one of the key deliberate moves that the Group has replicated within the region for improved performance.