Kenya’s Equity Bank Group has announced a 46 per cent per cent increase on profits before tax for its half year results in the current financial year, posting a Kshs 3.88 billion profit compared to Kshs 2.66 Billion for the same period last year.

Equally the period under review saw the after tax profit grow by 44percent from Kshs 2.09 billion to reach Kshs 3 Billion.

The total assets of the bank grew by 40 per cent to Kshs 123 billion, up from Kshs 88 billion in June 2009.

During the same period, net loans and advances to its customers grew by 27 percent from Kshs 54 Billion to Kshs 68 Billion.

The group recruitment and deposit recorded an impressive 53 percent growth in deposits in the financial period under review from Kshs 57.49 billion last year to Kshs 87.82 billion.

The bank still retains its pole position in terms of customers and bank accounts with 4.95 million accounts opened translating to over 56 percent of Kenya’s total bank accounts and ranking it the largest bank in East & Central Africa.

Total operating income within the same period grew by 40% from Kshs 7.2 billion to Kshs 10.12Billion, with the growth mostly coming from interest income which increased by 45 per cent from Kshs 4.35 billion in June 2009 to Kshs 6.30 Billion in the period under review.

The Group’s Non interest income grew by 33 per cent from Kshs 2.85 billion to Kshs 3.81 billion, mainly driven by commissions and fees from transactions. Its operating expenses grew by 36 percent from Kshs 4.65 billion to Kshs 6.27 billion.

During the period under review the bank increased its branch footprint in the region from 145 to 165. Releasing the results during an investor briefing, the Bank’s Chief Executive Officer, Dr. James Mwangi said the group’s impressive half year results were attributable to the improving macroeconomic environment, innovations, improved operational efficiencies, improving asset portfolio and payback of the realignment carried out early in the year.

“The group’s continued quest for new innovations in the financial sector coupled with continued optimism in the economy means that customers are voting with their minds and feet as indicated by the more than a million new deposit accounts in the period under review” said Dr. Mwangi.

The Bank’s CEO said that the recent M-kesho product was a game changer in the financial services sector.

Citing the capability of the product Dr. Mwangi said that the phenomenal uptake of the product was an indication of the need to embrace already existing mobile technology

”Our partnership with Safaricom meant that we were on the fast track to virtually create 17,500 bank agents and 10 million new accounts”. Said Dr. Mwangi. Already 400,000 M-Kesho accounts have been opened in less than 2 months of launching the product.

Dr. Mwangi, who also the chairs the Vision Delivery Board – an agency charged with the delivery of Kenya’s Economic blueprint, Vision 2030 – believes that the current reforms in the political, social and economic pillars as outlined in the economic blueprint will augur well for the sector and provides the platform for investors to invest .

The introduction of the agency banking model puts the bank in the lead to champion the taking of banking services to the last mile and portends a lot for the penetration of financial services which according the Finaccess survey in 2009 showed that the penetration rate stood at only 22 percent of the economy.

He said that the effecting of the East African community protocol provided limitless opportunities for the Bank to play its role in providing effective channels to households and small businesses in the region.

Technological infrastructure and financial literacy are key underlying planks that provide a fulcrum to the Economy.

Dr. Mwangi opined that the consolidation of regional markets also is critical to economic growth and with bank’s ability to serve over 35 million accounts and with continuous alignment of its products, the business fundamentals are poised to drive growth.

CAROL MUTHONDU