Equity Group has reported a 16.9pc increase in net profit for the half year period to end June this year supported by strong earnings and lower interest expenses.

The giant lender recorded profit after tax of Ksh 34.6 billion in six months of this year compared tp Ksh 29.6 billion reported over the same period last year in what chief executive officer Dr James Mwangi attributes to the bank’s four-year transformation strategy targeting governance, systems and infrastructure and go to market plans.

“The execution of the strategic business plan has started to reflect on the balance sheet and performance of the Group in agriculture, mining, manufacturing, trade and investment, and small and medium enterprises (SMEs) that populate the eco-systems of the formal sector in these value chains and is likely to significantly and increasingly transform the structure and performance of the Group,” said Mwangi.

Net interest income increased to Ksh 59.3 billion from Ksh 54.4 billion driven lower interest expenses which declined by 5.5 billion to Ksh 25 billion from Ksh 30.5 billion reported over the same period last year.

“Continued execution has resulted in transformation of the balance sheet structure and the resultant profit and loss structure creating resilience in performance,” he added.

The lender’s profits were sustained by its regional subsidiaries except Rwanda.

Net profit in the Kenyan unit rose by 40pc to stand at Ksh 19.5 billion same as Equity Bank whose net profit rose by the same margin to Ksh 1.9 billion.

Democratic Republic of Congo unit which is the second largest subsidiary reported a 22pc growth in profit after tax to Ksh 9.1 billion while Equity Bank Tanzania net profit grew fastest at 75pc to Ksh 1.1 billion.