Equity Group posts strong 2023 results, declaring KSh15.1Bn dividend. Key highlights include asset growth and trade finance surge.
Equity Group Declares KSh15.1Bn Dividend for Second Year Running
Equity Group Holdings has announced a record dividend payout of KSh15.1 billion (US$116.88 million) for the second consecutive year, affirming its strong financial performance in 2023.
Dr. James Mwangi, Group Managing Director and CEO, noted:
“The KSh4 per share dividend represents a 36% payout of the KSh43.7 billion (US$338.27 million) profit after tax, delivering a dividend yield of 11.9% based on the 2023 closing share price of KSh33.65.”
📊 2023 Financial Highlights
- Net interest income surged by 21% to KSh104.2 billion (US$806.58 million).
- Non-funded income rose by 30% to KSh75.9 billion (US$587.52 million).
- Trade finance lending doubled (+106%), pushing gross trade finance revenue up 90% to KSh11 billion.
However, total costs rose sharply by 52% to KSh128.2 billion, largely due to:
- A 139% increase in loan loss provisions (KSh32.8 billion),
- A 28% rise in staff costs, and
- A 39% jump in other operating expenses, driven by inflation and currency depreciation.
Despite these pressures, return on average equity stood strong at 22.3%, exceeding the 18% cost of capital.
📉 Net Profit and Deposit Growth
Profit after tax dipped 5% to KSh43.7 billion (US$338.27 million), mainly due to a 53% rise in interest expenses, outpacing the 30% growth in interest income.
Meanwhile, customer deposits grew 29% to KSh1.358 trillion, driving total assets up 26% to KSh1.821 trillion.
Shareholders’ funds also rose 20% to KSh218.1 billion.
💼 Loans and Liquidity
- Net loans: +26% to KSh887.4 billion
- Government securities: +27% to KSh500.5 billion
- Cash and cash equivalents: +25% to KSh290.1 billion
- Liquidity ratio: 53.4%, well above regulatory requirements
Equity’s capital adequacy remains robust:
- Total capital-to-risk-weighted assets: 18.1% (vs 14.5% required)
- Core capital ratio: 14.3% (vs 10.5% required)
🌍 Long-Term Growth and Strategic Outlook
Over the last 7 years, Equity has:
- Grown its customer base from 10.4M to 19.6M
- Increased customer deposits from KSh303.2B to KSh1.358T
- Expanded its asset base from KSh428.1B to KSh1.822T
Dr. Mwangi attributed this resilience to:
“A deliberate and strategic approach, a strong risk management framework, and a culture focused on innovation, customer-centricity, and compliance.”
🏆 Awards and Recognition
Equity Group received the prestigious Oslo Business for Peace Award and was ranked the 2nd strongest banking brand globally by Brand Finance.
📈 Future Outlook
Equity is strategically positioned for East Africa’s growth, with business verticals in banking, insurance, health, technology, and philanthropy.
Dr. Mwangi concluded:
“With the Africa Recovery and Resilience Plan, strong leadership, and a diversified model, Equity Group is set to deliver value across the region.”
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