Equitel among Equity digital products driving up Equity Bank’s performance
Mid October we told you how Equitel is taking on MPESA tortoise by tortoise, and is happens these tortoise steps are actually helping Equity Bank’s performance. According to a press statement sent this morning to Chetenet.com, Equitel is one of the Equity digital products that have posted strong performance. The press statement has been sent following a just released Equity Bank’s financial results for the third quarter of 2017.
The financial results show that Equitel increased its market share in the value of mobile money transactions to 26 per cent from 22 per cent, while its market share of mobile commerce rose to 33% from 30% in the preceding quarter.
Equity Group’s Managing Director & CEO, Dr. James Mwangi said that the decision to focus on innovation and digitization has been received well by customers who are now increasingly using mobile and online platforms to access banking services over physical branches
“We have seen 91 per cent of all bank transactions are now happening on self-service platforms. Through these platforms, we have compressed distance and time for our customers,” said Dr. Mwangi while releasing the 2017 third quarter results.
Equitel processed transactions worth Ksh353.6 billion in the third quarter of 2017, representing a 41 per cent increase from Ksh250.8 billion that was processed over a similar quarter a year earlier. The number of transactions processed increased by 31 per cent to stand at 197.1 million from 150.8 million over the same period.
An important Equity digital product, the Equity Bank’s internet banking platform on the other hand processed 1.3 million transactions worth Ksh96.9 billion over the quarter, up from 0.1 million transactions worth Ksh5.4 billion recorded in a similar period in 2016. This represented a phenomenal 2003% growth.
Similarly, Equity digital product the mobile app dubbed EazzyBanking App processed 54.5 million transactions worth Ksh51.9 billion as at September 30 2017.
Overall, the Group’s Non-Funded Income grew by 28 per cent to Ksh21.3 billion from Ksh16.6 billion cushioning the Bank against the reduction in interest income over the quarter. Trade finance, forex, merchant banking and agency commission were other sources that boosted non-funded income. The Group’s Profit Before Tax for the 9 months in 2017 was Ksh 20.7 bn while Profit After Tax was Ksh 14.6 billion.