Equity Group Holdings Plc has announced a 6.2% increase in its dividend payout, following a robust financial performance that saw the bank achieve a net profit of Kshs 46.5 billion. This translates to a dividend of Kshs 4 per share, amounting to a total distribution of Kshs 15.1 billion to shareholders. The payout ratio stands at 36%, up from 33.6% in the previous year, reflecting the bank’s commitment to delivering value to its investors.
In the nine months ending September 2024, Equity Group reported a profit after tax of Kshs 40.9 billion, representing a 13% year-on-year growth. Earnings per share increased to Kshs 10.4, up from Kshs 9.2 in the same period the previous year. Regional subsidiaries contributed 51% of the profit for this period, underscoring the success of the bank’s diversification strategy.
The bank’s total assets grew to Kshs 1.82 trillion from Kshs 1.45 trillion the previous year, while shareholder funds increased to Kshs 218.1 billion from Kshs 182.2 billion. Customer deposits rose to Kshs 1.4 trillion from Kshs 1.1 trillion, and the loan book expanded to Kshs 887.4 billion from Kshs 706.6 billion.
Equity Group’s board has also approved the creation of a banking holding company to consolidate the activities of all its banking subsidiaries. Additionally, shareholders have given the green light for the incorporation of a health insurance subsidiary, further diversifying the bank’s service offerings.
Despite a challenging macroeconomic environment characterized by high inflation and interest rate shocks, Equity Group has demonstrated resilience and a commitment to growth. The increased dividend payout reflects the bank’s strong financial health and its dedication to rewarding shareholders.
