Equity Group’s half-year profit after tax grew by 12 percent to Sh29.6 billion compared to a similar period last year, boosted by high interest income and improved performance by regional subsidiaries.

In its latest financial result, the lender’s revenue generated from interest grew by 22 percent to Sh84.8 billion from Sh69.8 billion.

The bank also attributes improved income to regional subsidiaries in Rwanda and the Democratic Republic of the Congo.

For instance, subsidiaries in the DRC and Rwanda now account for 47 percent of total loans and contribute 51 percent of profit after tax.

“We are optimistic that the strong liquidity of the Group has positioned us to effectively support our customers as the economy starts showing signs of improvement in the key markets we operate in, signaled by some of the regulators’ reduction of the Central Bank Reference rates,” James Mwangi Equity Group Holdings Managing Director and Chief Executive Officer said.

“With the improved liquidity, the Group continued to optimize its balance sheet reducing leverage by Kshs.75 billion of expensive borrowings.”

Its total assets also expanded by six percent to Sh1.75 trillion, with deposits jumping by 11 percent to Sh1.3 trillion.

“We are proud that the Group has sufficient cushion on its key balance sheet buffers being liquidity, capital and NPL coverage while at the same time it continues to report above industry profitability metrices with return of average equity of 26.7% and return on average assets of 3.4%,” Mwangi added.