Dr.James Mwangi, Equity Bank Group chief executive officer (CEO) and managing director CC image courtesy of whiteafrican on Flickr
Kenya’s largest bank Equity Bank has attributed the rise on its half year profits to the use of innovations and technology.
The bank recorded a 17 per cent increase in profits after tax in the period ending June 2013, rising to KSh6.3 billion (US$72 million) from KSh5.4 billion (US$62 million) in same period last year.
The bank, which was ranked fourth globally in Asset Deployment Efficiency by The Banker in 2013, said the ongoing focus on product innovation, prudent cost and risk management has seen it make huge headway in the market despite a depressed economic environment around the elections in Kenya, suspended oil trade in South Sudan and budgetary support challenges in Uganda and Rwanda in the earlier part of the period.
The bank’s strategic initiatives aimed at facilitating payments processing such as the Visa Personal Payments, PayPal withdrawal service and Account Based Money Transfer by Western Union contributed 36 per cent of the total income as compared to 34 per cent at the end of 2012.
James Mwangi, Equity Bank Group chief executive officer (CEO) and managing director, said the bank will benefit from an improved economic environment and plans to continue focusing on innovation and technology, new market segments, consolidation of regional businesses and growing the networks and channels to sustain growth in the second half of the year.
“An improved trading environment, diversification of the bank’s portfolio along with strategic global and local partnerships, regional expansion and increase in the number of Equity Bank agents will drive growth and deepen the bank’s penetration into the market,” Mwangi said.
He added the firm remained committed to its long term growth strategy.
“The bank will continue to strengthen its unique business model through innovation, enhanced use of technology and automation for a better customer experience,” he said.
The Bank says that its strategic partnerships will enable it further to take advantage of the volume of mobile and merchant payments.
The bank recently also launched the Visa Personal Payments – a fast and affordable money transfer service in Africa and the Kenyatta University Alumni Card a partnership between the Bank, Kenyatta University and MasterCard which allows alumni to enjoy discounts with selected partners.
