Equity Bank Group has reported a 20 per cent growth in profits for the first quarter of the year driven by rise in interest income.
The bank announced an after-tax profit of Sh5.1 billion in the three months to March 2016 compared to Sh4.2 billion posted in a similar period last year.
“The Group profit has been delivered by a 22 per cent growth in loan book and a 28 per cent growth in government securities,” said the Equity Group chief executive James Mwangi Tuesday while announcing the results.
Equity’s loan book grew to Sh275 billion from Sh224 billion in March last year resulting to a 36.5 per cent increase in interest income to Sh11.2 billion.
Customers savings with the bank rose to Sh299 billion from Sh276 billion a year earlier. The bank paid out interest of Sh1.7 billion.
Its net interest income increased by 36.8 per cent to Sh10.4 billion which management attributed to acquisition of cheap funds from the international market.
Equity’s operating income rose to by 18.1 per cent to Sh15.6 billion while expenses grew at a slower pace of 16.9 per cent to Sh8.3 billion.
Source: Business Daily