Equity Bank group managing director & CEO Dr. James Mwangi speaks at the 6th CIO100 annual symposium & awards on 10th November 2016. PHOTO:WILBERFORCE OKWIRI
Equity Bank plans to optimise a diversified revenue strategy as it shifts its focus to non-funded earnings to boost performance.
The bank’s non-funded income in quarter one of this year grew by 21 per cent from Sh5.2 billion to Sh6.3 billion, reducing the effects of reduced interest income on total income.
The net effect of this resulted in only a three per cent reduction in total income to Sh15.2 billion from Sh15.6 billion.
Speaking during the release of 2017 quarter one financial results recently, Equity Bank Chief Executive James Mwangi said the shift to non-funded income had increased and enhanced the quality of earnings significantly by reducing the risked income to non-risked income.
The contribution by non-funded income, he said, had surpassed this year’s target of 40 per cent to record a 42 per cent growth, making it a game changer for the bank.
The sustainable initiatives employed by the bank include the mobile banking strategy where transactions grew by 75 per cent to Sh308.8 million up from Sh176.9 million.
Equity’s diaspora remittances also rose 79 per cent to Sh130.1 million from Sh72.5million.