Equity Bank has reported a profit after tax of KES 2,322,787,000 for the first quarter of 2012. This is KES 5.871 billion less than they reported for a similar period last year.
Loans and advances rose by 30% to KES 112,853,305,000 as compared to the loans advanced during the same period last year. This is surprising considering that the average interest rate on lanes 20.34%. The bank also holds KES 22 billion in government securities up from KES 5 billion in the same period last year; this represents a 340% increase. Government securities have been extremely lucrative due to the good return they have exhibited since the beginning of the year.
It will be worthwhile to observe what effect this will have on the performance of the Equity counter at the Nairobi Stock Exchange (NSE).