Kenya’s Equity Group Reports Higher 9-Month Pre-Tax Profit and Lower Loan Loss Allowance
NAIROBI, Nov. 8 (Reuters) – Kenya’s Equity Group Holdings (EQTY.NR) on Monday announced that its nine-month pre-tax profit rose 85% to 36.6 billion shillings ($ 328.25 million), aided by higher interest income and lower provisions for bad debts.
Managing Director James Mwangi told an investor briefing that the lender’s net lending increased 23 percent to 559 billion shillings, while net interest income increased from 39.3 billion shillings to 48.48 billion shillings.
Equity also operates in Tanzania, Rwanda, Burundi, South Sudan, Democratic Republic of Congo and Uganda, and has a representative office in Ethiopia.
âMost of this growth has come from our subsidiaries,â Mwangi said.
The bank said loan loss provisions fell to 5.14 billion shillings from 14.76 billion shillings in the same period last year.
In March 2020, the central bank of Kenya authorized lenders to restructure loans for companies affected by the pandemic and gave them until March 2 of this year to proceed with the restructuring.
Equity’s pre-tax profit had fallen 20% in the first nine months of 2020, when its bad debt provisions were multiplied by 11.
At the end of October, President Uhuru Kenyatta lifted the nighttime curfew in effect since March 2020, a decision that should revive economic activity. Read more
($ 1 = 111,5000 Kenyan shillings)
Reporting by George Obulutsa; Editing by Kim Coghill
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