Equity bank records a 12% profit growth.

Equity bank records a 12% profit growth.

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Equity bank has recorded  a 12 percent pre tax increase , up from 10.8 billion  to 12.1 billion in its mid year financial results within the same period last year.

Speaking  on Tuesday during the investors briefing meeting in a Nairobi hotel , Equity CEO Dr James Mwangi said the profits’ gain were as a result of regional expansion  ,revenue growth and diversification.

The group’s net profit also grew by 12 % to 8.6 billion up from 7.7 billion last year ,whereby  income grew by 76% during the same period which was  aided by growing diaspora remittances and foreign currency denominated funding programmes to regional SME’s .

The growth of the agency had tremendous growth in Kenya Tanzania and Rwanda .

“The growth of the agency model has steadily increased in the transactions at the agent premises ,effectively overtaking branch and ATM transactions  which translates to lower operating costs .”Said Dr Mwangi

currently Equity agents transactions are  more than 42% of the total transactions processed .

On the other hand the total expenses grew by 22% to 14.2 billion shillings as  Equitel services hit one million subscribers.

The group is  planning to expand its operations to DRC after investing in East African countries.