EQUITY OVERTAKES KCB AS THE MOST PROFITABLE BANK

NAIROBI - Equity Bank has overtaken KCB Group as Kenya’s most profitable lender on back of aggressive expansion of foreign subsidiaries in a year when earnings plunged due to Covid-19 pandemic.

Equity Bank net profit dropped 11 per cent to Sh19.7 billion, racing ahead of KCB whose earnings fell 22 per cent to Sh19.6 billion with the performance of the foreign subsidiaries setting the two rivals apart.

KCB Group subsidiaries brought in Sh3.6 billion in net profits, which was has half the Sh7.2 billion that Equity received from its operations outside Kenya.

The growth of Equity profits from the foreign subsidiaries was on the back of its acquisition of Congo’s Banqué Commerciale du Congo in August, a deal that helped make it the first Kenyan banks to grow balance sheet beyond Sh1 trillion.

“Profit after tax from outside Kenya contributed to 28 per cent of our bottom line from 18 per cent the previous year as we increased market share and the merger in DRC propelled the group from position 4 to position 2 in that market,” said James Mwangi Equity Group CEO.

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