December 8, 2021

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Equity ranked among the world’s 1,000 biggest banks

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Thursday, November 4th, 2021: Nairobi, Kenya Equity has been named among the global banking behemoths once again. In The Banker magazine’s Top 1,000 World Banks 2021, the Kenyan institution was ranked 39th in terms of return on assets, 71st in terms of return on capital, and 149th in terms of soundness (Capital Assets to Assets ratio).

This rating is based on an examination of banks in eight areas: growth, profitability, operational efficiency, asset quality, return on risk, liquidity, soundness, and leverage, to name a few. With a Tier 1 capital base of USD 1,096 million, Equity was placed 22nd in Africa and 761st globally.

The COVID-19 pandemic, which shut down major sectors of the local economy, contributed to Equity’s outstanding achievement in the rankings. The bank makes major efforts in protecting communities and stakeholders, putting people and lives before of profits. It provided PPEs to health personnel at 56 county and national hospitals, as well as 60 faith-based facilities, in collaboration with the Kenya COVID-19 Emergency Board. In addition, the lender helped 17,800 Wings to Fly and Elimu Scholars deal with the extended school closure.

With the help of the Mastercard Foundation, it equipped them with solar-powered radios and lamps, as well as a mobile charging station, allowing them to continue learning while also providing for their basic needs, which was funded by a monthly stipend.

During the multi-crisis year, Equity prioritized social impact investment, foregoing Kshs. 1.5 billion in waived mobile transaction fees, Kshs.1.2 billion in loan rescheduling fees, and accommodating Kshs.171 billion (or 31% of the loan book) for up to 3 years of principal and interest repayment breaks to help businesses survive.

During the multi-crisis year, Equity prioritized social impact investment, foregoing Kshs. 1.5 billion in waived mobile transaction fees, Kshs.1.2 billion in loan rescheduling fees, and accommodating Kshs.171 billion (or 31% of the loan book) for up to 3 years of principal and interest repayment breaks to help businesses survive.

“These global rankings are a true testament to the Bank’s financial strength and professionalism, as well as the steps we implemented in the aftermath of the COVID-19 outbreak. We strengthened our capital buffers by retaining profits and deferring dividend payouts, took long-term loan facilities to strengthen our liquidity buffers, and assisted host communities and clients in mitigating the impact of the crisis on them by waiving fees and rescheduling loan repayments to match new cashflow patterns,” said Dr. James Mwangi, Equity Group Managing Director and CEO.

Equity Group, which has operations in six countries, was able to weather the COVID-19 interruption and increase its half-year Profits After Tax to Kshs.17.9 billion in 2021, up from Kshs.9.1 billion the previous year. The Group, which is the region’s largest bank by assets, also recorded an increase in total assets to Kshs. 1.12 trillion, up from Kshs. 746.5 billion the year before. Customer deposits increased by 51% to Kshs. 820.3 billion in the same time, maintaining the lender’s position as the largest bank in terms of deposits, market capitalization, and customer base, with over 15 million customers.

For more than 50 years, the Banker’s worldwide and regional rankings have been industry-standard indicators of financial institution performance. Tier 1 capital, a crucial metric of banking strength, is used to rank the largest banks in The Banker’s Top 1,000 World Banks. Furthermore, they examine over 120 data points tracked by The Banker Database year after year. The rating is a great tool for comparing banks and gaining a better picture of the global banking industry’s health and wealth.

About Equity Group Holdings 

Equity Group Holdings Plc is a Pan-African financial services holding firm with stock exchange listings in Nairobi, Uganda, and Rwanda. Kenya, the Democratic Republic of the Congo, Rwanda, Uganda, Tanzania, and South Sudan all have banking subsidiaries, as well as a Commercial Representative Office in Ethiopia. Investment banking, insurance, telecommunications, fintech, and social impact investments are among its other subsidiaries.

With assets of Kshs 1.12 trillion, Equity Group is the region’s largest bank (USD 11.2 billion). It is also the largest bank in terms of deposits, with a market valuation of USD 2 billion and a customer base of more than 15 million. The Group has 337 branches, 56,772 agents, 32,269 merchants, 697 ATMs, and a broad digital banking channel adoption.

Equity Bank was placed 754th overall in the Banker Top 1000 World Banks 2020, 62nd in soundness (Capital Assets to Assets ratio), 55th in Profits on Capital, and 20th in Return on Assets. The Banker’s Top 100 African Banks 2020 ranked the bank seventh overall among Africa’s top ten banks, with a fifth-place ranking for soundness, a ninth-place ranking for growth performance, an eighth-place ranking for return on risk, and a sixth-place ranking for profitability and leverage.

Due to the Bank’s strong brand recognition, solid liquidity buffers and resilient funding profile, established domestic franchise, and extensive adoption of digital and alternative distribution channels, Moody’s assigned the Bank a global rating of B2 with a negative outlook, the same as the Kenyan government’s sovereign rating.

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