Equity bank’s plan to use a diversified revenue strategy to boost its performance is finally paying off.
This is after the bank’s non-funded income grew by 21% down from KES 5.2 Billion to KES 6.3 Billion reducing the effects of reduced interest income on total income.
The net effect of these resulted in only a 3% reduction in total income to KES 15.2 Billion from KES 15.6 Billion.
According to Equity Bank CEO, James Mwangi, the contribution by non-funded income surpassed this year’s target of 40% to a record 42% growth.
The sustainable initiatives include the mobile banking strategy where transactions have grown by 75% to KES 308.8 Million up from KES 176.9 Million. Equity’s Diaspora remittances are up 79% to KES 130.1 Million from KES 72.5 Million; Trade Finance income has increased by 78% to KES 282.8 Million, Swifts, RTGS has grown by 28%, and agency banking by 19 % while merchant commissions grew by 8%.
The bank also plans to grow treasury, forex and fixed income trading to be part of growing list of alternative revenue streams.
During the first quarter of the year, Equity emerged the most profitable bank in Kenya with a profit before tax of KES 6.9 Billion.