Equity Bank Group has announced an 87% growth in its profit after tax for the first quarter of 2011, which grew to Kshs 2.3 billion as at Mar 2011 up from Kshs 1.2 billion in the same period last year.
In the first quarter ending March 31st, Equity Bank Group's profits before tax went up to Kshs 2.9billion from Kshs 1.7billion posted within the same period last year.
Speaking during an investor briefing session at Equity Centre, Equity Bank Group Managing Director Chief Executive Officer Dr. James Mwangi attributed the bank's strong performance in the first quarter to growing customer confidence and building on the strategic momentum since last year.
Equity Bank's total assets grew by 39% during the period to close at KShs 153.5 billion compared with Kshs 110.6 billion in March 2010.
Net Loans and advances grew by 30% to Kshs 86.2billion from KShs 66.2 billion advanced during the same period last year. However, the asset quality improved from 3.8% as at Mar 2010 to 2.1% in Mar 2011.
Customer deposits grew by 48% to close at Kshs 114.3 billion up from Kshs 77.4 billion during the same period last year buoyed by the growth in clients of 1.7 million to hit the 6.2 million clients.
“Our efforts to ensure sustained growth for this bank and for the regional economies at large have served to further endear us to the wider community as attested by the growing customer deposits and building of a strong brand,” Dr. Mwangi explained.
Equity Bank's first quarter results saw the impact of its strategic diversification of income streams. Total income managed to grow by 40% up from KShs 4.7 billion in Mar-10 to KShs 6.5 billion this year.
Net Interest income grew by 37% up from Kshs 2.6 billion earned during the same period last year to close at Kshs 3.6 billion.
Non-interest income, mainly transactions income, fees and commissions' income and trading income on treasury bonds rose from KShs 2.0 billion to close at Kshs 2.9 billion reflecting a 44% growth.
Total operating expenses on the other hand grew by 22% up from Kshs 2.99 billion registered last year to close at Kshs 3.65 billion in the first quarter of the year.
The bank continued to focus on its operational efficiency with cost to income ratio reducing to 56% from 64% compared to the same period last year. The cost to income ratio net of provisions reduced to 45% from 53% for the same period.
Equity Bank's first quarter results have been released after the Kshs 915Million Financial Literacy Programme in partnership with The MasterCard Foundation launch earlier this week. The bank's focus on an integrated financial ecosystem is aimed at widening financial access and deepening financial inclusion. Through a multi-faceted partnership approach, the Bank is set to avail affordable loans, offer free financial education and has rolled out an aggressive agency banking model to complement its extensive infrastructure that includes mobile phone banking.
As much as i have negative sentiments towards this bank, they pulled of quite a performance. kinda reminds me of the story of the boy that flew too close to the sun and got his wings clipped.