Equity Bank first quarter net profit up 21 per cent

Equity Bank Group managing director James Mwangi.  Nation Media Group

Posted  Monday, May 6   2013 at  10:43

 

Equity Banks’s net profit for the first quarter of 2013 rose 21 per cent to Sh3.2 billion from Sh2.6 billion the same period last year.

The bank's net loans and advances grew by 15 per cent to Sh139.5 billion from Sh121.1 billion in the same period last year but total non-performing loans more than doubled to Sh5.9 billion.

The lender's operating expenses rose to Sh5.73 billion from Sh5.31 billion for the period under review, a 7.9 per cent increase.

The net interest income also increased to Sh6.87 billion, from the previous year’s Sh5.69 billion, a 21 per cent increase.

The bank reduced its loan loss provision by 6.4 per cent. The lender noted that there was also a slowdown in agency transactions in the first quarter of 2013.

There was also a reduction in the contribution from regional business to 13 per cent from 17 per cent with directors pay and emoluments surging by Sh1.4 million.