Equity Bank CEO breaks down the company’s first half performance
Recently Kenya’s treasury told parliament that the government had advanced a loan of Ksh 654 million to Equity Bank, a statement refuted by the lender. This has raised doubts on how the money will be recovered, for more on this and the bank’s first half performance CNBC Africa spoke to the Group CEO and Chairman, James Mwangi for more.
Tue, 15 Jun 2021 15:58:35 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Equity Bank refuted claims of a loan from the Kenyan government, emphasizing its commitment to not borrowing from government sources.
- The bank reported a 64% growth in the first half of the year, attributed to a strategic approach combining defensive measures and asset expansion.
- Equity Bank's expansion into the Democratic Republic of Congo (DRC) and focus on digitization are key drivers of future growth and efficiency.
Equity Bank, one of Kenya's leading financial institutions, has been making headlines recently due to a controversy surrounding an alleged loan from the Kenyan government. The government claimed to have advanced a loan of about $654 million Kenyan shillings to Equity Bank, a statement that was quickly refuted by the bank's CEO and Chairman, James Mwangi. In a recent interview with CNBC Africa, Mwangi clarified that Equity Bank has never borrowed from the government, emphasizing that the conversation was on a media level and not a direct interaction with the government. Despite this challenge, Equity Bank has shown impressive growth in the first half of the year, with a 64% increase in performance. Mwangi attributed this growth to a strategic approach that combined defensive and offensive strategies in response to the COVID-19 pandemic. The bank focused on protecting its balance sheet while also experiencing significant asset expansion, leading to a boost in income. Additionally, Equity Bank's expansion into the Democratic Republic of Congo (DRC) is expected to further enhance its performance in the coming quarters, especially with the improving policy environment and rising commodity prices in the region. Mwangi highlighted the importance of digitization in reducing costs and improving the bank's efficiency. By shifting towards self-service platforms, Equity Bank has significantly lowered its cost-income ratio and is expected to continue this trend in the future. Mwangi also addressed the bank's approach to managing loans during the pandemic, revealing that Equity Bank provided payment breaks and other support measures to help affected customers. This proactive stance not only assisted businesses in weathering the economic challenges but also contributed to the overall stability of the Kenyan economy. Looking ahead, Equity Bank remains focused on balancing growth and returns to shareholders, with plans to expand further into Ethiopia, a market with promising growth prospects similar to DRC. With a commitment to sustainable growth and shareholder value, Equity Bank is poised to continue its success in the African banking sector.