Equity posts 21 per cent rise in half year profit

Equity bank has posted a 21 per cent growth in profit after tax in the half year to June 2014 riding on growth in the non-funded income segment of the lender.

The largest bank by customer number posted a Sh7.66 Billion profit up form Sh6.3 billion recorded over a similar period last year.

Non-funded income grew by 19 per cent driven mainly by payments processing income which grew by 58 per cent.

Diaspora banking and remittances processing also went up by 23 per cent.

Managing Director, James Mwangi said the lender’s regional expansion and product diversification strategies have been successful and thus contributed positively to the growth.

“The positive performance is due to strong fundamentals as well as an improved micro economic and investment environment which has renewed economic confidence in the region,” he said.

As part of growing the non-funded income, the bank has already signed up partnerships with Visa, MasterCard, PayPal, Google, China Union Pay, SWIFT, JCB, VFX (Equity Direct) and Diners Club.

It has also retained key merchants including retailers; Nakumatt Holdings, hospitality concerns ArtCaffé, Heritage Hotels, Best Western Hotel, Imperial Hotel, Laico Regency, Leopard Beach Resort and Boma Hotels as it seeks to increase its non-funded income in the future.

The bank’s loan book increased by 24 per cent to Sh187 billion up from Sh151 billion last year.

Customer deposits grew to Sh216 billion up from Sh185 billion in 2013.