Equity : Financial Statements as at 31st March 2023

EQUITY GROUP HOLDINGS PLC UNAUDITED FINANCIAL STATEMENTS AND

OTHER DISCLOSURES FOR THE PERIOD ENDED 31st MARCH, 2023

		EQUITY BANK (KENYA) LIMITED			EQUITY GROUP HOLDINGS PLC
			BANK			COMPANY			GROUP
STATEMENT OF FINANCIAL POSITION AT	31st Mar	31st Dec	31st Mar	31st Mar	31st Dec	31st Mar	31st Mar	31st Dec	31st Mar
		2022	2022	2023	2022	2022	2023	2022	2022	2023
		Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'
		(Un-Audited)	(Audited)	(Un-Audited)	(Un-Audited)	(Audited)	(Un-Audited)	(Un-Audited)	(Audited)	(Un-Audited)
A.	ASSETS
1.	Cash (both local & foreign)	13,880,097	13,946,713	13,948,695	18,113,690	14,409,974	14,681,792	53,315,066	66,708,559	87,619,727
2.	Balances due from Central Bank of Kenya	18,765,633	18,765,647	27,368,152	-	-	-	18,765,633	18,765,647	27,368,152
3.	Kenya Government and other securities held for dealing purposes	-	-	-	-	-	-	-	-	-
4.	Financial assets at fair value through profit or loss	-	-	-	-	-	-	-	-	-
5.	Investment securities:	336,795,694	320,258,862	316,855,889	-	-	-	389,413,699	393,983,864	392,468,517
a)	Amortised cost:	12,528,547	15,681,217	15,852,091	-	-	-	13,269,175	25,457,163	28,152,044
	a. Kenya Government securities	12,528,547	9,571,137	9,383,951	-	-	-	12,528,547	12,237,041	13,135,215
	b. Other securities	-	6,110,080	6,468,140	-	-	-	740,628	13,220,122	15,016,829
b)	Fair value through other comprehensive income (FVOCI):	324,267,147	304,577,645	301,003,798	-	-	-	376,144,524	368,526,701	364,316,473
	a. Kenya Government securities	221,405,320	206,633,893	202,818,448	-	-	-	221,405,320	206,972,825	202,818,448
	b. Other securities	102,861,827	97,943,752	98,185,350	-	-	-	154,739,204	161,553,876	161,498,025
6.	Deposits and balances due from local banking institutions	3,648,000	18,438,640	9,548,650	-	-	-	52,725,197	81,095,947	82,846,745
7.	Deposits and balances due from banking institutions abroad	13,742,979	25,671,494	16,538,031	-	-	-	41,571,266	65,798,488	60,569,141
8.	Tax recoverable	-	850,525	-	-	147,360	164,703	199,571	1,727,814	1,048,108
9.	Loans and advances to customers (net)	402,570,103	429,821,383	448,929,590	-	-	-	623,560,928	706,588,156	756,333,641
10.	Balances due from group companies	557,905	959,928	853,429	-	-	-	-	-	-
11.	Investments in associates	-	-	-	-	-	-	-	-	-
12.	Investments in subsidiary companies	-	-	-	81,234,820	93,432,939	93,439,183	-	-	-
13.	Investments in joint ventures	-	-	-	-	-	-	-	-	-
14.	Investment properties	-	-	-	-	-	-	5,826,659	6,115,091	6,538,248
15.	Property and equipment	4,606,634	5,764,696	5,577,192	10,023	8,876	9,337	16,032,256	18,898,943	20,464,541
16.	Prepaid lease rentals	-	-	-	-	-	-	-	-	-
17.	Intangible assets	9,804,028	10,892,789	11,381,106	-	-	-	12,011,817	12,527,909	13,085,035
18.	Deferred tax asset	17,164,712	22,989,070	27,416,137	119,411	318,517	621,529	20,278,858	27,244,000	33,143,375
19.	Retirement benefit asset	-	-	-	-	-	-	-	-	-
20.	Other assets	20,420,977	25,652,013	24,891,908	298,286	1,727,823	1,710,128	35,757,148	47,556,158	56,191,441
21.	TOTAL ASSETS	841,956,762	894,011,760	903,308,779	99,776,230	110,045,489	110,626,672	1,269,458,098	1,447,010,576	1,537,676,671

1. LIABILITIES

22.	Balances due to Central Bank of Kenya	-	-	-	-	-	-	-	-	-
23.	Customer deposits	478,962,604	517,217,504	544,137,669	-	-	-	900,923,634	1,052,161,597	1,111,168,760
24.	Deposits and balances due to local banking institutions	-	-	-	-	-	-	-	-	-
25.	Deposits and balances due to foreign banking institutions	126,784,492	130,153,486	111,375,175	-	-	-	-	-	-
26.	Other money market deposits	22,328,050	43,849,440	41,813,803	-	-	-	22,920,227	43,849,440	44,934,218
27.	Borrowed funds	94,029,386	88,174,860	89,321,186	11,500,000	12,629,259	13,723,626	124,131,221	113,692,466	114,113,375
28.	Balances due to group companies	1,632	-	-	-	-	-	-	-	-
29.	Tax payable	1,933,351	-	2,583,344	4,903	-	-	3,754,758	1,830,443	5,721,609
30.	Dividends payable	-	-	-	-	-	-	-	-	-
31.	Deferred tax liability	-	-	-	-	-	-	908,401	1,642,018	1,888,324
32.	Retirement benefit liability	-	-	-	-	-	-	1,289,349	1,856,467	1,920,274
33.	Other liabilities	14,438,056	17,089,079	16,646,633	1,386,441	561,257	754,282	41,323,756	49,766,873	67,245,663
34.	TOTAL LIABILITIES	738,477,571	796,484,369	805,877,810	12,891,344	13,190,516	14,477,908	1,095,251,346	1,264,799,304	1,346,992,223

1. SHAREHOLDERS' FUNDS

35.	Paid up / assigned capital	30,000,000	30,000,000	30,000,000	1,886,837	1,886,837	1,886,837	1,886,837	1,886,837	1,886,837
36.	Share premium / (discount)	9,964,132	9,964,132	9,964,132	15,325,264	15,325,264	15,325,264	15,325,264	15,325,264	15,325,264
37.	Revaluation reserve	(11,706,641)	(24,588,128)	(31,925,928)	-		-	(19,239,781)	(32,172,564)	(36,908,115)
38.	Retained earnings / accumulated losses	75,221,700	82,151,387	89,392,765	58,351,761	79,642,872	63,841,964	157,822,336	189,572,966	186,783,370
39.	Statutory loan loss reserve	-	-	-	-	-	-	91,910	1,582,327	1,582,327
40.	Other reserves	-	-	-	-	-	-	-	-	-
41.	Proposed dividends	-	-	-	11,321,024	-	15,094,699	11,321,024	-	15,094,699
42.	Non-controlling interests	-	-	-	-	-	-	6,999,162	6,016,442	6,920,066
43.	TOTAL SHAREHOLDERS' FUNDS	103,479,191	97,527,391	97,430,969	86,884,886	96,854,973	96,148,764	174,206,752	182,211,272	190,684,448
44.	TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS	841,956,762	894,011,760	903,308,779	99,776,230	110,045,489	110,626,672	1,269,458,098	1,447,010,576	1,537,676,671

STATEMENT OF COMPREHENSIVE INCOME

1. INTEREST INCOME

1.1	Loans and advances	10,454,158	47,698,257	11,883,190	-	-	-	17,118,685	78,231,754	20,715,620
1.2	Government securities	8,045,871	33,872,981	8,607,757	-	-	-	9,325,931	40,024,145	10,665,204
1.3	Deposits and placements with banking institutions	108,677	665,419	372,285	201,677	701,929	275,001	163,443	1,214,903	1,009,217
1.4	Other interest Income	12,817	50,543	18,032	-		-	65,736	163,606	49,534
1.5	Total interest income	18,621,523	82,287,200	20,881,264	201,677	701,929	275,001	26,673,795	119,634,408	32,439,575

2. INTEREST EXPENSES

2.1	Customer deposits	3,723,471	16,118,404	5,097,381	-	-	-	4,961,672	22,426,524	7,419,946
2.2	Deposits and placements from banking institutions	110,451	1,271,317	626,875	-	-	-	598,748	2,906,208	974,034
2.3	Other interest expense	1,362,963	6,486,212	2,164,036	144,508	814,259	294,966	1,761,712	8,302,634	2,360,698
2.4	Total interest expenses	5,196,885	23,875,933	7,888,292	144,508	814,259	294,966	7,322,132	33,635,366	10,754,678
3.	NET INTEREST INCOME	13,424,638	58,411,267	12,992,972	57,169	(112,330)	(19,965)	19,351,663	85,999,042	21,684,897

4. NON-INTEREST INCOME

4.1	Fees and commissions income on loans & advances	1,706,776	7,554,588	1,643,274	-	-	-	1,948,862	8,893,241	2,001,946
4.2	Other fees and commissions income	2,467,534	9,581,330	3,265,241	-	-	-	6,043,724	28,126,834	9,121,603
4.3	Foreign exchange trading income	972,079	6,483,484	1,550,522	-	-	-	2,047,295	12,969,690	5,164,992
4.4	Dividend income	-	-	-	-	22,140,458	-	-	-	-
4.5	Other income	451,848	3,920,373	1,802,134	(34,864)	(549,130)	(940,843)	1,874,025	9,946,415	2,095,116
4.6	Total non-interest income	5,598,237	27,539,775	8,261,171	(34,864)	21,591,328	(940,843)	11,913,906	59,936,180	18,383,657
5.	TOTAL OPERATING INCOME	19,022,875	85,951,042	21,254,143	22,305	21,478,998	(960,808)	31,265,569	145,935,222	40,068,554

6. OPERATING EXPENSES

6.1	Loan loss provision	963,547	7,836,716	1,848,209	-	-	-	1,805,839	15,414,322	3,476,580
6.2	Staff costs	2,682,041	14,163,580	3,704,986	3,471	37,646	3,663	4,982,551	24,776,799	6,629,022
6.3	Directors' emoluments	3,068	48,924	26,376	8,066	55,328	14,711	30,476	230,637	77,294
6.4	Rental charges	40,232	255,920	56,445	1,084	3,262	292	84,929	429,879	101,386
6.5	Depreciation on property and equipment	585,178	2,484,836	560,630	450	1,821	487	1,206,201	5,289,202	1,322,555
6.6	Ammortisation charges	238,652	1,014,627	259,435	-	-	-	501,248	2,082,281	326,040
6.7	Other operating expenses	3,769,488	18,144,384	5,393,687	29,546	309,598	28,910	7,370,479	37,868,317	11,254,638
6.8	Total operating expenses	8,282,206	43,948,987	11,849,768	42,617	407,655	48,063	15,981,723	86,091,437	23,187,515
7.0	Profit / (loss) before tax and exceptional items	10,740,669	42,002,055	9,404,375	(20,312)	21,071,343	(1,008,871)	15,283,846	59,843,785	16,881,039

EQUITY GROUP HOLDINGS PLC UNAUDITED FINANCIAL STATEMENTS AND

OTHER DISCLOSURES FOR THE PERIOD ENDED 31st MARCH, 2023

		EQUITY BANK (KENYA) LIMITED			EQUITY GROUP HOLDINGS PLC
			BANK			COMPANY			GROUP
STATEMENT OF COMPREHENSIVE INCOME (continued)	31st Mar	31st Dec	31st Mar	31st Mar	31st Dec	31st Mar	31st Mar	31st Dec	31st Mar
		2022	2022	2023	2022	2022	2023	2022	2022	2023
		Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'
		(Un-Audited)	(Audited)	(Un-Audited)	(Un-Audited)	(Audited)	(Un-Audited)	(Un-Audited)	(Audited)	(Un-Audited)
8.0	Exceptional items	-	-	-	-	-	-	-	-	-
9.0	Profit / (loss) after exceptional items	10,740,669	42,002,055	9,404,375	(20,312)	21,071,343	(1,008,871)	15,283,846	59,843,785	16,881,039
10.	Current tax	(2,180,136)	(8,319,090)	(3,445,301)	-	-	-	(3,441,366)	(12,689,391)	(5,631,156)
11.	Deferred tax	(96,396)	(289,142)	1,282,295	6,094	205,550	302,661	20,459	(1,051,853)	1,549,968
12.	Profit / (loss) after tax and exceptional items	8,464,137	33,393,823	7,241,369	(14,218)	21,276,893	(706,210)	11,862,939	46,102,541	12,799,851
12.1	Minority Interest	-	-	-	-	-	-	(319,201)	(1,208,545)	(493,915)
13.	Profit / (loss) after tax and exceptional items and non-controlling	8,464,137	33,393,823	7,241,369	(14,218)	21,276,893	(706,210)	11,543,738	44,893,996	12,305,936
	interest
14.	Other comprehensive income
14.1	Gains / (losses) from translating the financial statements of foreign	-	-	-	-	-	-	34,459	2,936,236	3,080,628
	operations
14.2	Fair value changes in FVOCI financial assets	(11,384,566)	(24,266,053)	(7,337,800)	-	-	-	(13,300,915)	(29,019,919)	(7,816,743)
14.3	Remeasurement of defined benefit obligation	-	-	-	-	-	-	-	(572,765)	-
14.4	Share of other comprehensive income of associates	-	-	-	-	-	-	-	-	-
14.5	Income tax relating to components of other comprehensive income	-	-	-	-	-	-	-	-	-
15.	Other comprehensive income for the year, net of tax	(11,384,566)	(24,266,053)	(7,337,800)	-	-	-	(13,266,456)	(26,656,448)	(4,736,115)
16.	Total comprehensive income for the year	(2,920,429)	9,127,770	(96,431)	(14,218)	21,276,893	(706,210)	(1,403,517)	19,446,093	8,063,736
Earnings per share - basic & diluted	282.14	1,113.13	241.38	-	5.64	(0.19)	3.06	11.90	3.26
Dividend per share - declared	-	600.00	-	-	4.00	-	-	4.00	-

OTHER DISCLOSURES

1. NON-PERFORMINGLOANS AND ADVANCES

a)	Gross non-performing loans and advances	38,221,171	39,144,391	53,523,707	-	-	-	59,377,971	63,134,379	80,286,325
b)	Less interest in suspense	7,527,201	9,042,023	12,140,036	-	-	-	10,877,722	13,013,091	15,439,093
c)	Total non-performing loans and advances (a-b)	30,693,970	30,102,368	41,383,671	-	-	-	48,500,249	50,121,288	64,847,232
d)	Less loan loss provision	19,342,614	19,735,572	23,219,285	-	-	-	28,331,171	31,512,828	34,377,208
e)	Net non- performing loans (c-d)	11,351,356	10,366,796	18,164,386	-	-	-	20,169,078	18,608,460	30,470,024
f)	Discounted value of securities	11,351,356	10,366,796	11,982,650	-	-	-	20,169,078	17,039,445	22,264,669
g)	Net NPLs exposure (e-f)	-	-	6,181,736	-	-	-	-	1,569,015	8,205,355

1. INSIDER LOANS AND ADVANCES

a)	Directors, shareholders and associates	5,599,798	6,442,159	6,557,260	-	-	-	8,064,766	7,961,065	7,988,215
b)	Employees	7,143,584	8,080,930	8,331,122	-	-	-	10,371,208	14,232,484	14,706,329
c)	Total insider loans and advances and other facilities	12,743,382	14,523,089	14,888,382	-	-	-	18,435,973	22,193,549	22,694,544

1. OFF BALANCE SHEET ITEMS

a)	Letter of credit, guarantees and acceptances	82,756,155	113,169,840	128,407,446	-	-	-	120,219,065	162,553,364	176,274,545
b)	Forwards,swaps and options	27,828,734	14,333,691	22,764,841	-	-	-	30,131,222	25,753,954	55,412,736
c)	Other contigent liabilities	-	-	-	-	-	-	-	-	-
d)	Total contigent liabilities	110,584,889	127,503,531	151,172,287	-	-	-	150,350,287	188,307,318	231,687,281

1. CAPITAL STRENGTH

a)	Core capital	93,789,052	121,149,261	124,576,233	-	-	-	147,005,645	177,328,347	196,947,972
b)	Minimum statutory capital	1,000,000	1,000,000	1,000,000	-	-	-	4,173,124	4,173,124	4,173,124
c)	Excess / (deficiency)	92,789,052	120,149,261	123,576,233	-	-	-	142,832,521	173,155,223	192,774,848
d)	Supplementary capital	38,150,068	37,232,858	38,670,101	-	-	-	50,130,968	51,444,445	53,976,054
e)	Total capital (a+d)	131,939,120	158,382,119	163,246,334	-	-	-	197,136,613	228,772,792	250,924,026
f)	Total risk weighted assets	713,396,619	768,315,225	834,849,797	-	-	-	1,055,807,361	1,134,400,234	1,269,667,878
Ratios
g)	Core capital / total deposit liabilities	15.5%	18.7%	19.0%	-	-	-	16.3%	16.9%	17.7%
h)	Minimum statutory ratio	8.0%	8.0%	8.0%	-	-	-	8.0%	8.0%	8.0%
i)	Excess / (deficiency) (g-h)	7.5%	10.7%	11.0%	-	-	-	8.3%	8.9%	9.7%
j)	Core capital / total risk weighted assets	13.1%	15.8%	14.9%	-	-	-	13.9%	15.6%	15.5%
k)	Minimum statutory ratio	10.5%	10.5%	10.5%	-	-	-	10.5%	10.5%	10.5%
l)	Excess / (deficiency) (j-k)	2.6%	5.3%	4.4%	-	-	-	3.4%	5.1%	5.0%
m)	Total capital/ total risk weighted assets	18.5%	20.6%	19.6%	-	-	-	18.7%	20.2%	19.8%
n)	Minimum statutory ratio	14.5%	14.5%	14.5%	-	-	-	14.5%	14.5%	14.5%
o)	Excess / (deficiency) (m-n)	4.0%	6.1%	5.1%	-	-	-	4.2%	5.7%	5.3%
(p)	Adjusted core capital / total deposit liabilities*	15.5%	18.7%	19.0%	-	-	-	16.3%	16.9%	17.7%
(q)	Adjusted core capital / total risk weighted assets*	13.2%	15.8%	14.9%	-	-	-	13.9%	15.6%	15.5%
(r)	Adjusted total capital / total risk weighted assets*	18.5%	20.6%	19.6%	-	-	-	18.7%	20.2%	19.8%

1. LIQUIDITY

a) Liquidity ratio	75.6%	67.5%	62.2%	-	-	-	56.9%	52.1%	51.5%
b)	Minimum statutory ratio	20.0%	20.0%	20.0%	-	-	-	20.0%	20.0%	20.0%
c)	Excess / (deficiency) (a-b)	55.6%	47.5%	42.2%	-	-	-	36.9%	32.1%	31.5%

*The adjusted capital ratios include the expected credit loss provisions added back to capital in line with the CBK guidance note issued in April 2018 on implementation of IFRS 9.

These financial statements are extracts from the books of the institution.

The complete set of financial statements, statutory and qualitative disclosures can be accessed

on the Institution's website www.equitygroupholdings.com.They may also be accessed at the

institution's head office located at Equity Centre, 9th floor, Hospital Road Upper Hill.

Signed	Signed
Prof. Isaac Macharia	Dr. James Mwangi, CBS
Group Non-Executive Chairman	Group Managing Director & CEO

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Equity Bank (Kenya) Limited and Equity Group Holdings Plc are regulated by the Central Bank of Kenya.