Equity Bank Group has recorded a five per cent growth in net earnings for nine months of the year to Sh36.2 billion largely on stable earnings in subsidiaries outside Kenya.
According to results released this morning, Equity Bank Kenya’s profit after tax declined 20 per cent to Sh19.3 billion, this is the first time the subsidiary has recorded a drop in profits in seven years.
This is attributed to high non-performing loans that hit an industry average of 15 per cent, perhaps an indication of a struggling economy in Kenya.
Equity Bank Kenya compared to other subsidiaries is now on a 50:50 split on Profit After Tax ( PAT); at the Profit Before Tax (PBT) level it’s 46:54 split.
Equity BCDC (DRC subsidiary) posted 142 per cent net profit growth to Sh11.4 billion while Tanzania subsidiary posted 136 per cent growth in net earnings.