Equity Group posts Kshs 43.7B profit in 2023 and declares Kshs 15.1B dividend for the second year, highlighting financial resilience.
Equity Group Holdings has announced a record dividend payout of Kshs 15.1 billion (US$116.9 million) for the second consecutive year, reaffirming its strong financial footing and investor confidence.
Group CEO Dr. James Mwangi said:
“The Kshs 4 per share dividend represents 36% of our Kshs 43.7 billion (US$338.3 million) net profit, or Kshs 11.1 earnings per share. That’s a dividend yield of 11.9% on our year-end share price of Kshs 33.65—and 800% on par value.”
- Net Interest Income: Kshs 104.2B ↑ 21%
- Non-Funded Income: Kshs 75.9B ↑ 30%
- Trade Finance Revenue: Kshs 11B ↑ 90%
- Customer Deposits: Kshs 1.358T ↑ 29%
- Total Assets: Kshs 1.821T ↑ 26%
- Net Loans: Kshs 887.4B ↑ 26%
Despite the growth, net profit declined by 5% to Kshs 43.7 billion, due to a 53% surge in interest expenses, outpacing interest income growth.
Expenses rose by 52% to Kshs 128.2 billion, driven by:
- Loan loss provisions up 139% to Kshs 32.8B
- Staff costs up 28%
- Operating expenses up 39%
The Group’s NPL coverage ratio hit 67.3% (without guarantees) and 90% (with guarantees), reflecting a strong risk management strategy.
- Liquidity ratio: 53.4%
- Total capital ratio: 18.1% (regulatory min. 14.5%)
- Core capital ratio: 14.3% (regulatory min. 10.5%)
- ROAE: 22.3%
Shareholders’ equity rose by 20% to Kshs 218.1 billion.
Over the past 7 years, Equity has expanded significantly:
- Customers: From 10.4M to 19.6M
- Deposits: From Kshs 303.2B to 1.358T
- Loan Book: From Kshs 269.9B to 887.4B
- Total Assets: From Kshs 428.1B to 1.822T
- Shareholders’ Funds: From Kshs 72.1B to 218.1B
The group earned multiple accolades:
With its Africa Recovery and Resilience Plan, Equity is targeting diversified growth across banking, insurance, technology, health, and philanthropy.
“We are strategically positioned in one of the fastest-growing regions globally—East Africa,” said Dr. Mwangi.
🔚 Conclusion
Equity Group’s consistent dividend, expansive loan book, and resilient strategy amid market headwinds reflect a well-managed, future-focused institution. As it strengthens its capital base and invests in new growth pillars, the group continues to shape the future of East Africa’s financial ecosystem.
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