Equity Group Announces Sh11 Billion Six-Month Profit

Equity Group has posted Sh11 billion profit for the first six months of 2018, an increase by 18 percent from the Sh9.4 billion recorded in the same period last year.

The good performance was driven by Euity's trading in government securities which increased to Sh158.9 billion up from Sh115.6 billion.

The results were announced on Thursday by Equity Group Chief Executive Officer James Mwangi.

“The business model has effectively enabled us to separate ourselves from the pack and demonstrate managerial capabilities and competence. We are now focused on efficiency in treasury trading, geographical expansion, innovation, cost optimization, brand development and social impact in society,” Mwangi said.

The lender's loan book grew by four percent to Sh275 billion between January and June. However, the group’s non-performing loans (NPLs) increased to a near 10 percent.

“The delay in payment by counties and some arms of central government to SMEs has been a challenge. Once this liquidity is released we expect to see some of these customers repaying their loans,” Equity Group director of credit Elizabeth Gathai said.

The lender says it expects to record a stronger second half due to the strong economic growth outlook for the region and a supportive operating environment.