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Equity group emerges resilient amidst multiple crisis

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➢ 54% growth in total assets

➢ 58% growth in customer deposits

➢ 64% growth in profit after tax

➢ 31% strong topline revenue growth

➢ Strong revised 2021 outlook

Equity Group has returned strong quarter one results in a challenging environment amidst the multi-faceted Covid-19 crisis of health, economic disruption, and humanitarian challenges, giving hope of resilience and recovery.

“Our strategy; purpose-first, inclusivity, affordability, reach, agility and quality have proven resilient and sustainable” said Dr. James Mwangi, the Equity Group CEO while releasing the first quarter of 2021 financial results. “Purpose has proved profitable” he added.

During the multi-crisis year, Equity focused on social impact investment in health investing Kshs.1.7 billion in social response to society, forgoing Kshs.1.5 billion in waived mobile transaction fees, waiving Kshs.1.2 billion in loan rescheduling fees and accommodating Kshs.171 billon (or 31%) of the loan book for up to 3 years of principal and interest repayment breaks to enable businesses to survive. “We kept the lights of the economies we operate in on, supported businesses to repurpose, retool and recover by supporting livelihoods of our customers during the crisis”, said Dr. Mwangi.

He added, “We have adopted a two-pronged strategy of being offensive and defensive. We strengthened our capital buffers by retaining profits and withholding dividend payouts, took long-term loan facilities that strengthened our liquidity buffers, supported host communities and our clients to mitigate the impact of the crisis on them by waiving fees and rescheduling their loans to match loan repayments to new cashflow patterns. Internally, we focused on risk mitigation and management in a challenging environment, enhanced our NPL coverage through provisions and sought collaboration with development financial institutions on credit and risk sharing guarantees. We evolved our organization structure through strong governance focus on risk management, diversity of skills and competencies to enhance our succession planning and mitigation of key person risks”, added Dr. Mwangi.

Operationally, the Group focused on generating and growing non-funded income, treasury efficiency, geographical expansion and business diversification, business transformation through innovation and digitization, balance sheet optimization and agility, asset quality and risk mitigation while pursuing efficiencies and brand development through social impact investment underscoring the performance of the Group.

Interest income grew by 32% while non-funded income grew by 30% to contribute 42% of total income. Regional subsidiaries registered resilience and robust growth to contribute 40% of total deposits and total assets and 23% of profit before tax with Rwanda and Uganda delivering above cost of capital returns.

Evolving economic, social, political governance reforms and environment have strengthened prospects for long-term sustained regional growth and investment, This coupled with development of physical and soft infrastructure enhance opportunities for private sector credit growth and productivity gains from cross border trade” said Dr. Mwangi.

The Group registered a balance sheet expansion of 54% to reach Kshs.1.07 trillion driven by a 58% growth in customer deposits underpinned by Kshs.140 billion shareholders’ funds. A liquid balance sheet with Kshs.500 billion of cash, cash equivalents and government securities reflect the agility to redeploy funding seamlessly as the economies recover from the adverse impact of the Covid-19 multi-crisis.

The Group took advantage of consumers’ lifestyle changes that acted as a tailwind to human adoption of technology resulting into change in consumer lives and behavior. The Group changed its strategy to adopt to the changing environment and executed a rapid business transformation that saw 98% of all transactions being digital in count, and 65% of volume by value. “Over the last one year, we have witnessed firsthand as our customers adopted our mobile and internet technology channels on self-service devices making our financial services offering truly a 24-hour service and lifestyle”, said Dr. Mwangi.

The business has seized the moment and fast-tracked transformation by investing and deploying fintech capabilities of biodata, artificial intelligence, machine learning, analytics and algorithms to support customer personalized product and services, offering wide lifestyle capabilities and global reach and presence” added Dr. Mwangi.

Strong focus on asset quality saw the Group develop an investment portfolio mix that resulted in a market and sectoral diversification across currencies and different geographies. The Group reported a non-performing loan book of 11.3% compared to the industry average of 14.6%. Strong risk mitigation saw NPL coverage stand at 99% from a mix of provisions at 87% and 12% of credit risk guarantees.

Of the 31% of the loan book, or Kshs.171 billion Covid-19 accommodated or rescheduled loan book, Kshs.59 billion has resumed repayment with Kshs. 5 billion fully repaid and Kshs.3 billion behind schedule in repayment. Kshs.66 billion is expected to resume repayment within 6 months by 30th September 2021.

On efficiency and cost optimization, the regional subsidiaries continue to gain momentum with marked improvement in cost to asset ratio and cost to income ratio and significant balance sheet and revenue growth.

The Group’s brand popularity is soaring in trust on account of our social engagement through our purpose-first strategy of shared prosperity evidenced by Wings to Fly and Elimu scholarships, Equity Afia health services, environmental protection through tree planting and clean energy product offering, empowering wealth creation through financial literacy and entrepreneurship development services and social safety net programmes.

Boosted by market leadership position in terms of balance sheet; market capitalization; customer base; capital base; and reinforced by the accelerated adoption of technologies by customers, a society seeking multi-sensory engagement, shared prosperity, purpose-first business models, the Group has reviewed its 2021 performance outlook upward to a return on equity of between 25% to 30% and return on assets of between 3.6% to 4.3% in an environment predicted by the World Bank and IMF to recover quickly.

The experience over the last 3 years of adoption of IFRS9 and riding the tide of Covid-19 multi crisis has brought forth the strength of the Group’s strong risk management culture of boldness, decisiveness and prudence. On account of the differentiated management decisions last year, the Group has emerged resilient with a strong foundation that gives hope and confidence of strong future performance as reflected by strong top line revenue growth.

From the lessons of the disruption of its previously unbroken track record of paying out dividend since its listing in the stock exchange, the Group formulated a capital allocation, value creation and distribution policy that guarantees a dividend payout of between 30% to 50% of the Group’s profit after tax and institutionalized the policy by the creation of an executive position in charge of capital allocation and value creation.





Source – bigeye.ug

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Ronald Sebuguzi receives boost ahead of the World Rally Championship

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Vivo Energy Retail Manager Alvin Bamutire officially flags off Ronald Sebuguzi after he received his cash sponsorship worth UGX25 million ahead of the World Rally Championship (WRC) Safari Rally 2021 that will be taking place in Nairobi, Kenya.

Vivo Energy Retail Manager Alvin Bamutire officially flags off Ronald Sebuguzi after he received his cash sponsorship worth UGX25 million ahead of the World Rally Championship (WRC) Safari Rally 2021 that will be taking place in Nairobi, Kenya.

By Our Reporter

Shell V-Power has announced a UGX25 million cash sponsorship towards three-time Uganda National Rally Champion, Ronald Sebuguzi.

Sebuguzi is one of four rally drivers to qualify for the World Rally Championship (WRC) Safari Rally 2021, which will take place in Nairobi, Kenya.

“I appreciate Ronald and his fellow drivers for the hard work they have continuously put in the game. Shell V-Power is proud to be part of the journey, working with champions like Ronald Sebuguzi. Through this sponsorship, we are fueling his ambitions to represent our country at this prestigious motorsport event,” said Mark Mutungi Fuels Manager, Vivo Energy Uganda.

The June 24 – 27 event is back on the FIA World Rally Championship calendar after a 19-year absence. It was regarded as one of motorsport’s most prestigious and celebrated events of its time before it departed the series in 2002.

“I look forward to representing my country at this prestigious motor-sporting event. I am grateful to Shell V-Power for the support that they have offered to me through the years as a professional racer. I have, for the past 10 years, used Shell V Power which has a high-octane level that maximizes the performance of my car making it a road warrior,” Sebuguzi said.

In Uganda, Shell V-Power has a long-standing history of supporting and contributing to the growth of racing through sponsorships of rallying talent and sporting events that include the National Rally Championships, Pearl of Africa Rally, Kabalega rally and the National Motocross championships.

“We reiterate our commitment to growing rallying and racing as a sport in Uganda through offering support to both the drivers and the sporting events. This year, that will be no different,” Mr Mutungi added.





Source – bigeye.ug

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Zahara Totto’s ex Don Solomon arrested again, to be charged with fraud

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Zahara Totto’s ex-lover Don Solomon is behind the coolers again for fraudulent activities and theft which were allegedly committed from Speke Hotel in Munyonyo.

Tony Taban Sulaiman Malish a.k.a Don Solomon was arrested again on allegations of impersonation, accumulative debts, and Electronic Fraud.

According to Kampala Metropolitan Police spokesperson ASP Luke Owoyesigyire, Don Solomon was arrested over fresh allegations of fraud and theft from Speke Hotel Munyonyo.

Josh Ruby is an Editor with high interest and knowledge in the Ugandan entertainment space, an industry he has been actively part of since 2010. Leads to breaking stories are welcome!



Source – mbu.ug

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GIWUNYE! Poliisi yetoonze ku bikolwa by’omusirikale waabwe, akwattiddwa abitebye mu bwangu

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Poliisi olunnaku olw’eggulo ku Lwomukaaga yakutte omu ku baddereeva ku misango gy’okweyambisa emmotoka ya Poliisi okutambuza abantu, ekintu ekiyinza okusasaanya Covid-19.
Okusinzira ku mwogezi wa Poliisi mu ggwanga Fred Enanga, ddereeva Sgt Christopher Opio, yakwattiddwa.
Enanga agamba nti Sgt. Opio okweyambisa emmotoka ya Poliisi okutambuza abantu, yagyemedde ebirabiro by’omukulembeze w’eggwanga lino Yoweri Kaguta Museveni n’eminisitule y’ebyobulamu eby’okulwanyisa Covid-19.
Vidiyo ya Sgt. Opio yatambudde ku mikutu migatta bantu n’okusingira ddala ogwa Face Book era Enanga asabye abantu okwongera okuyamba ku Poliisi okukwata vidiyo ku bantu abegumbulidde okumenya amateeka.
Sgt. Opio wakutwalibwa mu kakiiko ka Poliisi akakwasisa empisa n’amateeka era singa emisango gimukka mu vvi, ayinza okugobwa mu Poliisi.
Ku lunnaku Olwokutaano, Pulezidenti Museveni yayimiriza emmotoka zonna okutambuza abantu okumala ennaku 42 nga kyakoleddwa okuyambako mu kutangira Covid-19 okusasaana.



Source – www.galaxyfm.co.ug

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