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EQUITY PRESS RELEASE EQUITY GROUP HOLDINGS PLC DOUBLES PROFITABILITY VALIDATING ITS RESILIENCE AND BUSINESS CONTINUITY STRATEGY DURING THE PANDEMIC • Growth in profit after tax of 98 % • Total Assets growth of 50 % • Growth in Deposits of 51 % • Growth in Net Loans of 29 % 17th August 2021 ... Equity Group Holdings Plc has announced a 98 % growth in half year profits to Kshs.17.9 billion up from Kshs.9.1 billion the previous year . Speaking while releasing the results , Equity Group Managing Director and CEO Dr James Mwangi said , “ The defensive and offensive strategy adopted by the Group at the onset of the Covid - 19 pandemic to create resilience , agility and recovery has been very effective in positioning , navigating and driving performance . " The offensive growth strategy saw deposits register a 51 % growth to Kshs.820.3 billion up from Kshs 543.9 billion , while long term borrowed funds grew by 78 % to Kshs . 102.3 billion up from Kshs.57.6 billion . Net Loans and advances grew by 29 % to Kshs.504.8 billion up from Kshs.391.6 billion , while investment in Government securities grew by 46 % to Kshs.315.5 billion up from Kshs.216.4 billion resulting in 50 % growth in Total Assets to Kshs.1.12 trillion up from Kshs.746.5 billion . The aggressive growth strategy effected by the Group resulted into a 33 % growth in topline Total Income to Kshs.51.6 billion up from Kshs . 38.7 billon driven by a 26 % growth in Net Interest Income of Kshs . 31.2 billion up from Kshs.24.6 billion and a 45 % growth in Non - Funded Income of fees , commission and transactions to Kshs.20.4 billion up from Kshs.14.1 billion . The defensive approach focused on high asset quality , strong capital and liquidity buffers that saw the Group present a strong non - performing loans ( NPL ) coverage of 92 % up from 73 % the previous year attributed to a decline in gross non - performing loans by Kshs.1.3 billion from Kshs.61.2 billion to Kshs.59.9 billion . Loan loss provision declined by 66 % from Kshs.7.7 billion to Kshs.2.6 billion to register cost of risk of 1.2 % down from 4.2 % . Net non - performing loans declined by Kshs . 5.4 billion from Kshs.28.3 billion to Kshs.22.9 billion due to the aggressive provisioning the previous year under the defensive strategy . Of the Kshs . 171 billion Covid - 19 restructured loan book , Kshs . 162 billion is categorized as performing with Kshs . 103 billion having resumed repayments , Kshs . 6 billion fully repaid , Kshs . 92 billion up to date in repayment and Kshs . 5 billion non performing . Only Kshs 64 billion remains under Covid - 19 moratorium constituting only 11 % of the entire loan book . Total operating costs grew by 4 % to Kshs.27.8 billion against a 33 % growth in total income to Kshs.51.6 billion driving profit before tax up to Kshs.23.8 billion up from Kshs.12 billion a growth of 99 % . Efficiency gains saw Cost Income Ratio decline marginally to 48.5 % from 48.8 % driven by a reduction of cost of funds to 2.6 % down from 2.9 % . Return on Average Assets ( ROAA ) grew to 3.3 % in spite of the 50 % expansion in Total Assets while Return on Average Equity ( ROAE ) grew to 25 % up from 15.4 % in spite of 26 % growth in Shareholders Funds . Earnings per share grew by 95 % to Kshs.4.7 up from Kshs.2.4 . Liquidity buffers saw cash and cash equivalent register a growth of 154 % to Kshs.219.5 billion up from Kshs.86.6 billion with Liquidity Ratios rising to 62.4 % up from 54.2 % with Loan to Deposit Ratio 1