Equity Bank’s profit after tax for the third quarter of 2014 grew by 26% to Sh11.2 billion, up from Sh8.9 billion in the same period last year. Group CEO Dr James Mwangi attributed the growth to inter-country trade within East African and diaspora remittances, a trend he expects to continue due to governments’ efforts to improve business infrastructure.
“The integration of East African countries has positively contributed to the business community and regional trade within the region has risen to about 30 percent,” noted Dr Mwangi. “More infrastructural developments will make the business climate more viable.”
The rebasing of Kenya’s Gross Domestic Product reflecting a 25% expansion of the economy and sustained 6-8% growth rate of Tanzania, Rwanda and Uganda over the recent past is expected to boost the performance of the regional banking subsidiaries.”
With a 9.2 million customer base, the bank has opened subsidiaries in Tanzania, South Sudan, Uganda and Rwanda which posted growth in deposits and profit after tax.
Equity is now placing its bets on agency banking, which grew 70%, with the agents depositing Sh45 billion and conducting 18 billion withdrawals, more than ATMs and branches combined. “Agency banking is working positively for us since it accelerates financial transactions without necessarily visiting any of our branch. We are planning to expand the agency offering to include other services such as insurance and air ticket sales.”
Equity has been growing strategic income streams to diversify its products in the region and this has seen the bank grow exponentially, with merchant business commissions posting a 69% growth while diaspora remittances registered 19% growth.
