Equity Bank Posts KSh 26.3b Profit As Co-op's Earnings Rise To KSh 12b

• Kenyan lenders registered improved profits in 2023 half-year results, with Cooperative Bank and Equity posting impressive results
• Co-operative Bank of Kenya’s net profit rose to KSh 12.1 billion, representing a 5.8% growth from KSh 11.4 billion reported during a similar period in 2022.
• This came amid high inflation, high-interest rates, volatile exchange rates and devaluation of emerging economies' currencies

Kenyan banks have recorded increased profits according to the 2023 half-year results.

What's Equity Bank's profit?

Equity Group Holdings registered a KSh 26.3 billion profit after tax during the period under review.

This came amid high inflation, high-interest rates, volatile exchange rates and devaluation of emerging economies' currencies.

The lender's managing director James Mwangi attributed the performance to regional market expansion and the launch of its insurance business.

"Our strategic pursuit has resiliently positioned us to weather the macroeconomic headwinds and turbulence. Regional geographical expansion and business diversification has seen reliance on the contribution of the Kenyan banking subsidiary reduced, with other subsidiaries contributing 46% of total assets and 45% of profit before tax, driven primarily by insurance and the DRC business.

The drive to non-funded income growth registered success, with total income growing at 24%, driven by a 42% growth of non-funded income and a 17% growth of net interest income," Mwangi said.

How much was Co-op Bank's profit?

At the same time, TV 47 reported Co-operative Bank of Kenya’s net profit rose to KSh 12.1 billion, representing a 5.8% growth from KSh 11.4 billion reported during a similar period in 2022.

The bank's managing director Gideon Muriuki noted its loan book increased to KSh 365.3 billion boosting its revenues.

"The strong performance of the bank is in line with the group’s strategic focus on sustainable growth, resilience, and agility," Muriuki said.

What KRA collected from banks in taxes

The Kenya Revenue Authority (KRA) collected KSh 181.2 billion in tax revenue from banks.

A report titled 2022 Total Tax Contribution of the Kenya Banking Sector revealed that the banking sector's tax contribution increased by 40% from KSh 129.5 billion reported previously.

The data was gathered by Kenya Bankers Association (KBA) and consultancy firm PwC.

KBA chief executive officer Habil Olaka noted banks' performance recorded growth in 2022 as the economy recovered from the devastating effects of the COVID-19 pandemic.