Equity’s cash transfer service starts in May
Equity Bank chief executive officer James Mwangi. Equity Bank has launched its thin SIM to offer voice, data and free money transfer services. PHOTO FILE |
What you need to know:
- Diversifying sources of revenue
- The bank recorded a 21 per cent increase in after-tax profit for the first three months to hit Sh3.9 billion up from Sh3.2 billion recorded in the same period last year. The management attributed the growth to increased lending.
Equity Bank will launch a money transfer service in May after securing an operators licence last week.
When in place, the platform is expected to take on market leader Safaricom, Airtel and Orange.
“It’s true we do have a licence now. In not so distant future - in a matter of days, not weeks - and not later than May we shall call you for the launch.
The convergence between the telecommunications and banking sector will transform the country,” said managing director James Mwangi.
He spoke in Nairobi on Thursday at an investor briefing where the bank released its first quarter results.
GROWTH IN LENDING
The bank recorded a 21 per cent increase in after-tax profit for the first three months to hit Sh3.9 billion up from Sh3.2 billion recorded in the same period last year. The management attributed the growth to increased lending.
“We are excited that with the loan book growing at 28 per cent, as the money hits the bank, we are able to find home for it,” said Mr Mwangi.
Deposits grew by 18 per cent to reach Sh1.053 billion compared to Sh726 million recorded in same period in 2013. The number of new accounts increased by 205,000 in the three months.
Mr Mwangi said the bank’s international lending stood at Sh30 billion and was set to increase to Sh50 billion to meet rising borrowings particularly by small and medium enterprises.
He said the bank had continued to grow its agents reaching 10,000 in the period, and expanded its accounts of Kenyans abroad, which had increased the number of transactions.
