Equity Group has reported a 30% growth in its loan book from Kshs 348.9 billion in September 2019 to Kshs 453.9 billion as at 30th September 2020.
While releasing the results for Q3 2020, Dr. James Wangi, the Group Managing Director and CEO said the loan book grew by 30% year on year in order to support customers who saw opportunities of green shoots and diversification in the COVID-19 environment.
“Most of the new opportunities we funded were in manufacturing of PPE’s, logistics, online businesses, agro- processing, fast moving consumer goods and agriculture value chains,” he said
“Execution of Equity Group’s twin strategy of being defensive and offensive has proven to be effective despite the challenging environment. Customer deposits registered a 45% growth from Kshs478 billion to Kshs 691 billion driven by 51% growth in Uganda, 21% growth in Kenya and an additional Kshs130 billion from the acquisition of BCDC in DRC. Loans to customers grew by 30% driven by 37% growth in Uganda, 19% growth by Equity Bank Congo, 15% growth in Rwanda, 15% growth in Kenya and an additional Kshs 48.5 billion from the acquisition of BCDC in DRC.”
Meanwhile, he noted that the bank’s regional expansion and business diversification efforts have reduced dependence on Kenya for Group performance making the Group a regional financial services provider.
The bank’s regional subsidiaries now contribute 40% of customer deposits, 39% of Group total assets, 33% of the loan book, 30% of the Group’s revenue and 25% of the Group’s profit before tax.
Mr Wangi adds that Equity has worked to support the larger society, communities and customers to weather and mitigate the adverse effects of COVID-19 by among others waiving fees on mobile banking transactions to discourage the use of cash while incentivizing the use of digital channels and leading nationwide initiatives to safeguard frontline health workers through the provision of PPEs and mental wellness and psychosocial support training by the Equity Group Foundation at a cost of Kshs1.3 billion.
“Equity Group has endeavored to leverage on the opportunities that present within the COVID- 19 crisis, especially for customers. We chose to seize the opportunities which have presented themselves through the pandemic, most notably for our societies and the world to build back better, and to build a more ethical and equal operating environment for all in Africa who have been left out of the established systems.”
“We are focused on increasing the chances of our customers surviving the COVID-19 challenges, transforming themselves by walking with them and hand-holding them with our knowledge, skills and Group resources. During these extra-ordinary times our performance measures has changed from numbers to lives and livelihoods supported, changed, enhanced and transformed,” concluded Dr. Mwangi”.