Equity bank made a profit of Kshs 14.8 billion, a Kshs 2.5 billion drop from last year’s net profit of Kshs 17.3 billion.
This 14.5% drop in net profits in the year ended in September shows the lender outperformed KCB bank, which had a 43.1% drop in net earnings for the same period. KCB bank’s net profit was Kshs 10.8 billion.
The lender has employed prudent and shrewd business approaches to remain effective in their service delivery during this challenging economic period.
The bank has increased its provisions on loans to Kshs 14.7 billion, which is 7.8 times above the earlier amount. This move hurt the lender’s bottom line. Within the same period, the bank’s loans have increased to Kshs 453.8 billion, a 30% increase.
The lender’s investment in government debts increased to Kshs 185.2 billion, a 37.1% increase.
Equity group has recorded 69.4 % in non-performing loans, 11.4% of the overall loan book.
Notably, the lender is committed to offering their services while supporting their customers in navigating through these challenging economic times.
The bank has restructured loans worth over Kshs 90 billion. The customers whose incomes have been affected due to COVID-19 can now pay their outstanding loans under the new terms.