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The Equity Bank Classed 7th Position Amidst the Top Ten Banks in Africa
Posted On 17 Oct 2020
By Abdul Rahman Bangura–
Photo Credit: Kiplinger
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– The Equity Bank – an associate of Equity Group Holdings Plc has been enumerated at digit 7 amongst the top ten Banks in Africa in 2020 with a feat of 5.82 in the across-the board classification of the promising operating banks. This is according to The Banker’s Top 100 African Banks ranking for 2020.
This 2020 structure, indicates stabilization in the finances of the preponderance of African major lenders. The ranking, which traces the health and wealth of the African banking sector, utilized an exhibition of metrics encompassing the general development performance, financial soundness, profits on capital, leverage, and return on risk.
In the year under assessment, Equity developed on its performance with a 14% profit after tax growth with performance reflected during an income capping period in Kenya driven by a 23% development in loan book.
Dr. James Mwangi – Managing Director and CEO of the Bank said that, the rendition of the Bank, amplified efficiency and cost optimization saw cost-income ratio improving to 51% from 52.4% in 2018.
The Group has retained its earnings on interest-earning investments at 11.2% regardless of the challenge of interest capping and decreasing production curve. Innovation has also been a great enabler in navigating development and is already enlisting efficiency gains from digitization.
On financial resilience, Equity rated digit five on the background of a strong equilibrium sheet with liquidity of 52.1%, a loan guarantee ratio of 75.9% and a core capital to risk weighted asset ratio of 19.8%.
The equilibrium sheet indicates tangible assorted allotment with consumer residues comprising 72% of the total funding, shareholders and long-term borrowing participating 17% and 8% respectively.
The economic fitness is further strengthened by a robust capital base, which is well within both inner and regulatory thresholds, solid business performance and Net loans which composed 54% of the total assets while government securities and cash and cash equals provided 26% and 13% of the aggregate asset funding respectively.
“The ranking is an indication that Equity remains robust, despite the challenging operating environment. We have developed and adopted a sustainable business model to cushion the business as well as boost value creation for shareholders,” strengthened Dr. Mwangi.
The Banker Top 1000 World Banks 2020 ranked Equity Bank 754 in balance sheet size overall in its global ranking, 62nd in soundness (Capital Assets to Assets ratio), 55th in terms of Profits on Capital and, 20th on Return on Assets.
Equity Group Holdings has banking subsidiaries in, Rwanda, Uganda, South Sudan, Tanzania, DRC, and a Commercial Representative Office in Ethiopia; with additional non-banking subsidiaries engaged in the provision of investment banking, custodial, insurance agency, philanthropy, consulting, and infrastructure services.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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