Equity Still Rocks Despite Controversy

Enviable feats:Against a backdrop of controversy sorrounding the shareholding of its Chief Executive, the company has realize such enviable feats in recent times that the players in the banking sector are yearning for.

Being Kenya’s largest retail bank, Equity, has posted an impressive growth that put its ahead of most companies in the banking league.

Growth: The company recorded a 107% growth in pretax profits to Sh1 billion for the half-year period ended June 30.

Operating Income: This increased by 83% to Sh2.6 billion from Sh1.4 billion in a similar period last year.

Customer Base: Its customer base rose by 300,000 in the 6 months since January to 1.3 million customers representing about 35 per cent of all bank accounts held in the 42 licensed banks in the country.

Customer deposits: This went up by Sh7.3 billion to Sh23.6 billion since January.

After Tax profit: The bank’s after tax profits increased by 137 per cent to Sh830 million up from Sh350 million in a similar period last year.

Interest Income: Net interest income for the period was Sh1.2 billion compared to a total non-interest income of Sh1.3 billion.

Overhead expenses: This increased by 70% from Sh903 million to Sh1.5 billion as the bank forged ahead with its branch and staff expansion.
Total assets: This went up by Sh9 billion to Sh29 billion.

Staff numbers: It grew by 600 to 1,919 in the period.

Awards: The bank recently won the global vision award in microfinance jointly with Grameen Bank of Bangladesh, during the annual G8 summit held last month in Germany.

Shares: The bank’s shares continued to maintain its stability and liquidity with sizeable investors still streaming in to buy a piece of the companies stake. This is after the shares fell to an all time low of around Ksh 80 just after the effecting of a bonus issue. However this was only shortlived as the the shares were priced at between Sh133 and Sh128 in yesterday’s trading at the stock market.

Housing Finance stake: The company has already signed a deal to buy 24% of the the stake in Housing Finance, the listed mortgage company, after successful boardroom negotiations with CDC to take up its shareholding in the company once the impending rights isue is effected.

Financial Supermarket: With the company in partnership with Britak in the Housing Finance deal, it appears theat the company might be headed towards the establishment of a financial supermarket with British American Insurance, British American Asset Managers, Dyer and Blair, Housing Finance and Equity Bank in the deal to provide a one stop shop for insurance, Capital markets Investments, Corporate Finance, Asset management, retail lending , mortgages etc