Kenya’s Equity Group delivers 12% FY’24 earnings growth

Equity Group has reported a solid 48.8 billion shillings in its latest full-year earnings, marking a 12 per cent increase. The bank's success has been attributed to its diversified business model and sound financial management practices. James Mwangi, the Group CEO, highlighted that the strategic efforts to expand across regions and business lines have significantly contributed to the group's profitability. The bank's regional subsidiaries in DLC, Rwanda, Uganda, Tanzania, and South Sudan have collectively outperformed the Kenyan market in terms of banking profits, underscoring the benefits of geographic diversification. Additionally, the pivot into insurance and technology sectors is showing promising signs, with these new ventures already accounting for 3 per cent of the group's total profits. Mwangi emphasized the importance of operational efficiency and cost optimization in maintaining shareholder value, leading to an increased dividend payout. Looking ahead, the group is betting on the insurance business to drive future growth, aiming to safeguard customers' health, life, and wealth through comprehensive insurance offerings. Despite challenges such as growth in non-performing loans, Equity Group remains optimistic about its prospects, leveraging its strong brand reputation and robust risk management practices to navigate uncertainties in the global economy. Mwangi outlined the focus on enhancing lending to the agricultural sector as a key strategy to capitalize on higher-earning assets and bolster margins amid a complex external environment. As the bank continues to innovate and adapt to evolving market conditions, the future outlook remains positive, underpinned by a commitment to resilience and agility.