Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Equity Bank cashing in on Chinese arrivals

29 July 2013, 16:14 Duncan Miriri

Nairobi - Equity Bank has scored 2 billion shillings in new deposits in less than six months from a specialised branch in Nairobi to support local Chinese business, helping boost its half-year results, the company said on Monday.

The boost from the branch, benefiting from China's push for more influence across Africa, helped drive a 17 percent rise in first half pretax profit for Kenya's biggest bank by number of accounts to 9 billion shillings ($103 million).

"The Chinese are dominating the development of infrastructure in our country and they are creating SMEs (small and medium enterprises) to support the supply chain," Chief Executive James Mwangi told Reuters.

"In just under six months of opening, it has built up a deposit base of over 2 billion shillings. That takes our traditional branches over 20 years to build," Mwangi said.

Chinese personnel staffing the new branch

The bank had hired Chinese personnel to staff the new branch in the capital so that it could do more business with Chinese firms and residents, who work in many areas of the economy, including building roads and retail, he said.

The bank is offering letters of credit and bid bonds for Chinese businesses as part of a push on trade finance generally, helping raise non loan-related income to 36 percent of the total from 33 percent in the same period a year ago.

The share of Equity's revenue from its loans business fell to 64 percent in the first half from 66 percent while its cost to income ratio dropped a percentage point to 49 percent.

"We have managed to reduce our fixed costs by shifting to what one would call low-cost delivery channels," Mwangi said, citing its network of agents, who offer services away from the branch, and its mobile banking platform.

He said the bank was on course to hit its profit growth target of 30 percent this year, as a slowdown in its regional markets of South Sudan, Uganda, Tanzania and Rwanda subsides.

"We are on course. The second half is normally much more profitable," said the chief executive. ($1 = 87.4500 Kenyan shillings)

- Reuters

Join in the conversation on our Facebook page. Also get the latest news by following us on Twitter.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Shakila Alivitsa
Types of men that are a waste of ...

Most women end up heartbroken because they were trying to convince the wrong man to be in a relationship/ marriage. Read more...

Submitted by
Shakila Alivitsa
Cheating is hardwork!

Cheating, although enjoyable by the person doing it initially, it gets to a point they start realizing that it was never even worth it. Read more...

Submitted by
Shakila Alivitsa
Dating that one person that socie...

Works at a massage parlour. Works at Millionaires Club (that one on Baricho road) - you know the ones I am talking about. Read more...

Submitted by
Shakila Alivitsa
Submitted by
Shakila Alivitsa
What do men mean when they say th...

As much as men think they are the ones confused by relationships, they have a better idea of it than most women actually do. Read more...

Submitted by
Wilson Ochieng
ODM rebels sweat in Kisii as Oran...

ODM rebels are sweating in Kisii after the Orange Party won by elections despite concerted efforts by the ruling Jubilee Party to win the elections. Read more...