Equity bank grows into slowdown

Kenya’s Equity Bank results for the quarter to March 2009 saw operating income
rise 52% and Profit After Tax rise 26%.

There was a 59% fall in loan loss provisions but a 126% rise in staff costs. Needless to say, the cost income ratio rose to 64% compared to 60% for FY 2008. Total NPLs, worryingly rose by 164% against a bigger Total balance sheet(up 45% year)

The slowing domestic economy is starting to have an impact. Although the bank delivered a good bottom line progression, there were clearly growing pains in this set of results.