Equity Bank Rwanda Plc reported a 24 percent increase in its profit after tax for the first half of 2024, driven by strong growth in interest income amid higher loan disbursements and robust investment returns.
The bank’s profit after tax for the period ended June 30, 2024, rose to Rwf22.0 billion from Rwf17.8 billion a year earlier, according to reviewed financial statements published by the lender.
Interest income, a key driver of profitability, climbed 34 percent to Rwf57.6 billion. The rise was attributed to an increase in loan and advances, as well as higher investments in government securities and placements during the period.
This growth in interest income was complemented by a 21 percent rise in fees and commission income, which reached Rwf10.7 billion. Equity Bank Rwanda credited the increase to a surge in digital transactions and higher lending activities in sectors like trade, manufacturing, and agriculture.
Net loans and advances to customers grew by 7 percent to Rwf374.2 billion, spurred by increased demand from small and medium-sized enterprises (SMEs) and consumer finance segments. The bank also reported significant growth in its deposits, which climbed 8 percent to Rwf436.9 billion, reflecting stronger customer acquisition and retention strategies.
The bank maintained a solid capital base, with its total capital ratio at 18.78 percent, well above the regulatory minimum of 15 percent. This ratio was supported by a healthy mix of Tier 1 and Tier 2 capital, demonstrating the bank’s robust financial health and capacity for further expansion.
The lender also reported improvements in its asset quality metrics, with the Non-Performing Loans (NPL) ratio at 2.09 percent, down from 2.27 percent in the previous period, indicating effective risk management strategies.
Operating expenses rose by 16 percent to Rwf17.7 billion, driven by increased costs associated with digital transformation initiatives and staff remuneration adjustments. Despite the rise in costs, the bank’s cost-to-income ratio remained competitive at 45 percent, underscoring continued operational efficiency.
Looking ahead, Equity Bank Rwanda remains optimistic about the second half of 2024, citing a favorable economic environment, supportive regulatory framework, and strategic investments in digital banking and customer outreach programs. The bank expects to leverage its expanded branch network and digital platforms to enhance service delivery and tap into emerging market opportunities.
Equity Bank Rwanda’s financial performance reaffirms its strategic focus on sustainable growth, leveraging technology, and expanding its footprint in key economic sectors. As the bank continues to strengthen its position in the Rwandan market, it remains committed to supporting the country’s development agenda and fostering financial inclusion.
