Banking & Finance
Equity Group Declares Kshs 15.1B Dividend Again
Looking ahead, Equity Group is strategically positioned in East Africa, a rapidly growing region with significant economic potential. Its diversified business model—encompassing banking, insurance, health, technology, and philanthropy—empowers the group to capitalise on growth opportunities, foster innovation, and enhance service delivery for a promising future.
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.
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.
- Equity Group 2023 Financial Results
- Record Dividend by Equity Bank
- Kenya Banking Sector Growth
- Equity Bank Loan Book Growth
- East Africa Financial Markets