Equity Group net profit in Q3 grows to Ksh 40.9B

Equity Group made Ksh 40.9 billion in net profit during the first nine months of this year driven by an 11PC growth in interest income.

However, gross non-performing loans and advances increased by 0.7pc to Ksh 125.3 billion while non-funded income increased marginally to Ksh 58.3 billion and net interest income hit Ksh 80.6 billion pushing total interest income to Ksh 138.9 billion.

Net non-preforming loans stood at Ksh 54 billion also marginally decreasing from Ksh 58 billion previously as non performing loans coverage stood at 67.1pc.

Operating expenses increased 27pc to Ksh 54 billion the chunk of which was pushed by staff costs at Ksh 23.9 billion.

Interest expense grew by 18pc at Ksh 43.5 billion with interest income growing by 13pc at Ksh 125.9 billion.

Customer deposits increased 9pc to Ksh 1.3 trillion which in turn led to a reduction of borrowed funds from international lenders by 64pc at Ksh 76.4 billion from Ksh 214 billion.

The lender did not declare any interim dividend to shareholders.