Equity Group Holdings Ltd (EGHL) has bolstered its reputation by issuing a staggering Kshs 15.1 billion (approximately USD 138 million) in equity rewards to shareholders in FY 2023. The impressive figures mark the second consecutive year of record dividends for the financial services giant.
The large dividend paid is a direct reflection of the equity group’s strong financial performance in 2023. It is a positive signal for Equity Group’s shareholders and investors.
Dividends are a vital element of a well-balanced portfolio, providing a steady stream of income and contributing to the long-term growth of an investor’s wealth.
A high dividend declaration reflects a company’s financial health and profitability, fostering investor trust and confidence.
Companies with a history of consistent dividend payouts are often seen as more attractive investments, especially for income-seeking investors.
The record-breaking dividend payout further solidifies the group’s position as a frontrunner in the financial services industry and a leader in shareholder value creation.
Profit after tax reached Kshs 43.7 billion (approximately USD 402 million), a slight decrease of 5.1% compared to the previous year.
This decrease can be attributed to higher operating costs, which are not uncommon in times of expansion and innovation. However, the overall picture highlights impressive growth with diverse results in terms of earnings.
Equity Group’s financial performance in 2023 showcased a potent combination of strategic lending, a keen eye for regional opportunities, and a commitment to customer service.
The core of their growth lies in a significant 21% increase in net interest income, a key profitability metric.
This upsurge was fueled by a 25.59% expansion in customer loans, demonstrating their success in extending credit to a wider range of clients.
Beyond traditional lending, Equity Group capitalized on the growing demand for trade finance solutions in the region.
Non-funded income, encompassing fees and commissions from services like trade finance and wealth management, saw a remarkable 30% increase.
This impressive growth was driven in part by a notable 90% rise in gross trade finance revenue.
Furthermore, the group solidified its position as a regional financial powerhouse. Banking subsidiaries established in Uganda, Tanzania, South Sudan, Rwanda, Democratic Republic of Congo, and Ethiopia played a significant role in their success.
These regional players contributed a substantial portion of the group’s overall performance, accounting for 50% of total assets, 51% of revenue, and an impressive 56% of profit before tax.
Despite going through a tough economic environment marked by rising inflation and rising interest rates, Equity Group has remained committed to adopting a customer-centric approach.
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“For us, it’s a trade-off between money and the customer. We want to shield the customer from the harsh macroeconomic headwinds,” Dr. James Mwangi, the Group Managing Director and CEO said.
Equity Group’s future outlook remains promising. The bank’s 2024 revenue is expected to be driven by positive equity returns, fueled by strong corporate earnings, economic recovery, and supportive government policies.
Their objectives for 2024 prioritize transforming lives, providing financial dignity, expanding opportunities for wealth creation, and enhancing the overall customer experience.
Equity Group’s impressive financial results in FY 2023 can be attributed to its multifaceted approach towards enhancing customer convenience, satisfaction, and accessibility.
Through the Equity paybill number 247247, the group has streamlined financial transactions and ensured seamless interactions with its clientele.
For enquiries, you can reach out to the bank through the Equity bank customer care contact 0763 000 000.