Equity bank makes record profits as 2021 results are released

Equity bank group has announced making a Kenyan shs40 billion in profits in the previous 2021 year which translated into 99% growth in profit after tax.

According to the results for the year up to December 2021, the bank nearly doubled its Sh20.1 billion earnings in the previous year whereas it also recorded a 29% growth in balance sheet and 29% growth in deposits to make it currently the largest bank in the region.

The group noted that it focused on supporting customers and in the process increased and accelerated loan disbursements and growth by over 29% and 23% for the two years respectively while the economy was plummeting to a GDP growth rate of negative 0.1% from a high of 5.8%.

“Equity was committed to saving the businesses of its customers while maintaining livelihoods. As the COVID-19 pandemic mutated into a social, humanitarian, and economic crisis, Equity Group rolled out social investments of Kshs 5.8 billion to complement the government’s health and social responses in the East and Central Africa region,” the bank said in a statement.

The bank also noted that in social protection, through cash transfer programs, it provided inclusive financial services through fully-fledged bank accounts and biometric smart cards to millions of marginalized and vulnerable households living in Uganda, Rwanda, and South Sudan.

“Equity leveraged innovative delivery models to co-create enrolment and payment solutions for elderly persons, orphans, persons with severe disabilities, persons living in ASALs, internally displaced persons, refugees, and other vulnerable segments.”

According to the bank, customer deposits grew to Kshs959 billion from Kshs740.8 billion, improvement in non -performing loans from 11% to 8.3%, and increased in the provision of coverage from 89% to 98% earnings per share grew by 98% to Kshs10.40 from Kshs5.20 and the record dividend payout of Kshs11.3 billion which represented a 50% increase from the last dividend payout for 2018.