Equity Group Holdings has proposed a record dividend of Kshs.15.1 billion for the second consecutive year, underscoring its robust financial performance and commitment to shareholder value.
The announcement came during the release of the company’s 2023 full-year financial results, which showcased remarkable growth and resilience despite challenging market conditions.
Dr. James Mwangi, Group Managing Director and CEO of Equity Group, shared insights into the company’s financial achievements, highlighting the proposed dividend of Kshs.4 per share.
This dividend represents a substantial 36% payout of the Kshs.43.7 billion Profit After Tax or Kshs.11.1 earnings per share, demonstrating Equity’s strong profitability and shareholder-centric approach.
The financial results revealed a buoyant performance across key indicators, with net interest income surging by 21% to Kshs.104.2 billion and non-funded income witnessing an impressive 30% growth to Kshs.75.9 billion.
Notably, gross trade finance revenue experienced a significant uptick of 90% to Kshs.11 billion, driven by substantial growth in trade finance-related lending and guarantees.
Despite robust revenue growth, total costs increased by 52% to Kshs.128.2 billion, primarily due to a substantial 139% rise in loan loss provision to fortify asset quality buffers.
This proactive approach to risk management underscores Equity’s commitment to maintaining sound financial health amid evolving market dynamics.
Equity Group’s balance sheet also expanded significantly, with total assets growing by 26% to Kshs.1.821 trillion and customer deposits increasing by 29% to Kshs.1.358 trillion.
Shareholders’ funds saw a notable uptick of 20% to Kshs.218.1 billion, reflecting the company’s solid capital base and strategic growth initiatives.
Dr. Mwangi emphasized Equity’s steadfast commitment to prudent risk management practices, which have contributed to the organization’s resilience in navigating various challenges, including regulatory changes, global economic uncertainties, and the ongoing COVID-19 pandemic.
Furthermore, Equity Group’s diversification strategy has positioned it as a regional powerhouse in financial services, with a significant presence across East and Central Africa.
The recent acquisition of Cogebanque in Rwanda, completed on November 30, 2023, further solidifies its market leadership in the region, making Equity the second-largest bank in Rwanda.
Beyond financial performance, Equity Group remains deeply committed to driving positive social impact through its various initiatives, including the Equity Group Foundation.
These efforts encompass financial literacy programs, support for micro, small, and medium enterprises (MSMEs), environmental conservation initiatives, and healthcare and education interventions targeting marginalized communities.
Looking ahead, Equity Group is poised for continued growth and innovation, leveraging its strong financial position, strategic partnerships, and unwavering commitment to social responsibility.
With a clear vision for Africa’s recovery and resilience, the organization aims to play a pivotal role in driving sustainable economic development and prosperity across the continent.
Dr. Mwangi reiterated Equity Group’s dedication to delivering value to all stakeholders while driving positive change in the communities it serves.
He expressed confidence in the company’s ability to navigate future challenges and capitalize on emerging opportunities, positioning it as a catalyst for Africa’s socio-economic transformation.
