The decision by the Monetary Policy Committee (MPC) to adjust the Central Bank Rate (CBR) from 13 per cent to 12.75 per cent in August, continues to trigger ripple effects in the industry. And Equity Bank is the latest to respond by reducing its Reference Rate (EBRR) from 18.24 per cent to 17.83 per cent effective Monday, September 9, 2024.
The final interest rate for new Kenya shilling-denominated credit facilities will now consist of the new EBRR rate in addition to a margin, which is currently capped at a maximum of 8.5 per cent per year. This comes months after the bank had increased the EBRR from 17.56 peer cent to 18.24 per cent in February.
Additionally, this follows recent records from the bank, that indicated a substantial increase in its profit after tax for the first half of the year 2024, with the figure standing at Sh29.6 billion, a 12 per cent year-on-year growth. This impressive growth was accompanied by a corresponding rise in earnings per share, which increased from Sh6.7 to Sh7.6 during the same period. As Equity bank is set to see a rise in the number of credit applications, its digital transformation and customer centric approach, will continue to drive growth and success.
