Equity Group profit rises to Sh5.13 billion in three months

Equity Bank Group's net profit for three months to March 31 rose 19.30 per cent to Sh5.13 billion, compared to Sh4.30 billion in the same period last year.

The bank announced on Tuesday that the growth was largely driven by a 36.88 per cent growth in net interest income, to Sh10.43 billion from Sh7.62 billion.

Total loans increased by Sh50.26 billion to Sh275.02 billion on March 31, compared to Sh224.76 billion posted a year ago.

The bank's deposits rose by Sh22.47 billion in the three months to Sh299.22 billion, from Sh276.75 billion in the same period of 2015.

"The performance has benefited from the group's strong brand that has seen the number of customers grow to reach 10.3 million," chief executive James Mwangi said during an investor briefing in Nairobi.

"The huge customer base provides a diversified risk base, avoiding concentration risk."

Equity has increased loan provision against bad debt to Sh4.2 billion from Sh4.16 billion, with net non-performing loans standing at Sh4.8 billion from Sh3.58 billion last year.

The balance sheet and total funding grew by 16 per cent from Sh372.5 billion to Sh430.2 billion.

Investment in government securities – Treasury bonds and bills – grew from Sh48.9 billion to Sh62.4 billion.

Source