Equity Group Holdings has proposed a dividend of KES 15.1 billion for a second year. During the release of the 2023 financial results, Dr James Mwangi, Group Managing Director and CEO highlighted a dividend of KES 4 per share, amounting to a 36% payout of the KES 43.7 billion Profit After Tax or KES 11.1 earnings per share and a dividend yield of 11.9% on the 2023 year-end closing share price of KES 33.65 or 800% on par value.
The performance showed strong momentum, with net interest income growing by 21% to KES 104.2 billion and non-funded income registering a 30% growth to KES 75.9 billion. Gross trade finance revenue grew by 90% to KES 11 billion, driven by a 106% growth of trade finance-related lending and 26% growth of trade finance guarantees and off-balance sheet items.
Total costs grew by 52% to KES 128.2 billion, principally driven by a 139% growth in loan loss provision to strengthen asset quality buffers. Other operating expenses and staff costs grew by 39% and 28%, respectively, driven by high inflation and depreciation of the Kenya shilling. Return on average equity stood at 22.3% against an 18% cost of capital. Profit After Tax declined by 5% to KES 43.7 billion due to interest expense growing at 53% compared to a 30% growth rate of interest income.
The gross balance sheet grew by 26% to KES 1.821 trillion, driven by 29% growth in customer deposits, which grew to Kshs 1.358 trillion. Shareholders’ funds grew by 20% to KES 218.1 billion. Deployment of funding saw net loans grow by 26% to KES 887.4 billion while government securities holding grew by 27% to Kshs.500.5 billion as cash and cash equivalent grew by 25% to KES 290.1 billion.
Despite multiple challenges, the Group has shown resilience with significant growth in customers, deposits, and loan book over the past 7 years. Total assets have grown to KES 1.822 trillion, while shareholders’ funds grew to KES 218.1 billion.
