Thursday, March 8, 2012

Equity records 45pc rise in profit after tax

PHOTO | DIANA NGILA  Equity Bank CEO James Mwangi during a breakfast briefing at the Equity Centre on the bank's financial year ended December 31, 2011. The bank recorded a Ksh 10.3Billion profit after tax. March 8, 2012.

PHOTO | DIANA NGILA Equity Bank CEO James Mwangi during a breakfast briefing at the Equity Centre on the bank's financial year ended December 31, 2011. The bank recorded a Ksh 10.3Billion profit after tax. March 8, 2012. 

By GRIFFINS OMWENGA [email protected]

Equity Bank Group recorded a 45 per cent growth in profit after tax for the year ended December 2011, which it attributed to increased interest income and cost cutting measures.

The bank’s net profit grew to Sh10.33 billion in 2011, up from Sh7.13 billion in 2010, with interest income from loans rising to Sh16.58 billion in the period under review.

It paid Sh2.1 billion to customers for their deposits currently standing at Sh140 billion, against Sh113 billion for loans advanced.

“The bank’s performance was aided by effective cost management and robust deposits through our agency banking,” Equity group MD James Mwangi said.

More than doubled

Mr Mwangi was speaking during the bank’s investor briefing in Nairobi on Thursday.

The bank’s foreign income more than doubled to Sh1.9 billion against Sh878 million in 2010.

Equity Bank was among the banking institutions that were adversely named in a Parliament report on the decline of the Kenya shilling, but defended itself, saying, it had operated within the law.

The management has proposed a Sh1 dividend per share, up from last year’s Sh80 cents for approval in the next shareholders meeting.

Equity will be shifting to offshore financing and is seeking a Sh8.2 billion loan from the International Finance Corporation to help fund the expansion plans of corporate entities or big companies.

The money will be advanced to customers priced at about 10 per cent in interest.

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