Equity Group has made a Sh12 billion profit in just half a year. According to the bank, this is a 9 per cent increase in their net profit in the first months of 2019.
The bank has attributed the six month's surge to increase in loan advancements to private sectors. More so, it noted that its use of digital transactions made them operational efficient.
The bank revealed that it took a risk of channelling loans to households and businesses in fear of the interest charged and government securities, something other banks have feared to try.
The bank has realized that lending to private sectors brings more profits than Treasury returns. Its asset quality of the Non-Performing Loans.
Equity Group Managing Director James Mwangi came out to reveal that leading to private sectors was a great deal for the bank.
“Like a hunter who learns how to shoot without missing, we have learnt to fly without perching,” he said as quoted by Citizen.
“It is the market forces that have driven the decision to pack more funds in the private sector. You wouldn’t compare a near 13 percent return on loans against an eight percent earning rate from treasury bills," he added.
Having given out up to Sh45 billion as loans, Equity made a total of Sh18.7 billion profit.
Digitization of its operations has also played a great deal in its achievements in the last 6 months. It made the bank realize a 3 per cent increase in its profits, equivalent to Sh332 million transaction deals.
Equity bank will be celebrating its 35th year of existence in the course of the year.