Equity to phase out branch banking, makes Sh17.3 billion profit

 A file photo of Equity Bank Chief Executive Officer James Mwangi. Photo/ENOS TECHE

By JOAN WAIRIMU

Mar. 08, 2016, 12:00 pm

 

Equity Bank plans to push retail clients out of its banking halls to its mobile banking platform Equitel and agents.
Equitel, which was launched last July, recorded 151 million transactions in 2015 with a total value of Sh114 billion.
“What we now see is the bank beginning to retire the old brick and mortar mode of banking, and transacting on the mobile," CEO James Mwangi said at the release of the group’s 2015 financial results.
"Our branches will then be open for SMEs and large corporates who were previously discouraged by the long queues."
Transactions via agents rose by 35 per cent to reach 51.3 million with a total value of Sh341.5 billion.
Equity made a profit after tax of Sh17.3 billion, a slight increase from the Sh17.2 billion reported in 2014.
The group's staff costs were Sh10.8 billion, four per cent higher than the previous Sh10.3 billion. Mwangi said the group is anticipating a further five per cent cut in staff costs this year.

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