Equity Group Holdings reported a 25.1 percent growth in net profit for the first three months to March to Sh15.3 billion from Sh12.3 billion in the corresponding period a year earlier.
The increase in profits is due to the increase in income during this period, as the bank grew its interest and non-funded income lines.
Total operating income rose to Sh50 billion in the period from Sh40 billion as interest income rose the fastest by 32.7 per cent to Sh43 billion.
The growth in interest income was partly attributable to higher income from loans and advances to customers, which reached Sh27.3 billion from Sh20. 7 billion previously.
Equity Group equally increased its non-funded income by 21.3 per cent to Sh22.2 billion from Sh18. $3 billion as a significant factor from higher fees and commissions, which offset the decline in forex trading income.
The bank's total operating expenses rose by 28.1 per cent in the period to Sh29.6 billion from Sh23.1 billion, as loan provision costs rose by 76.4 per cent to Sh6 billion from Sh3.4 billion.
The rise in provisioning costs comes amid a 50 per cent rise in total non-performing loans to Sh120.4 billion from Sh80.2 billion.
The equity group's asset base expanded to Sh1.685 trillion at the end of the quarter with net loans and advances to customers rising 14 per cent to Sh1.195 trillion.
Meanwhile, the bank's customer deposits grew by 11.2% to Sh1.236 trillion.
Equity Group CEO James Mwangi attributed this performance to its continued implementation of the strategy, which included business diversification and regional expansion.
“The numbers speak for themselves. It is a very strong recovery for the group over the past seven years amid multiple shocks including interest rate caps, the pandemic and geopolitical risks.
