Kenya’s Equity Bank Says Expects Loan Losses

Equity Group Holdings Plc, Kenya’s biggest lender by market value, increased provisions for loan losses by eight times causing profit for the six months through June to drop 24%.

Net income slipped to 9.02 billion shillings ($83.2 million) as provisions surged to 8.02 billion shillings from 918.5 million shillings a year earlier, according to a statement emailed Tuesday by the Nairobi Securities Exchange.

Gross non-performing loans jumped 56% to 45.6 billion shillings, while net interest income — the money lenders make from issuing loans — grew 17% as loans and advances to customers rose 22%.

“In light of the markets we operate in being characterized by a thriving real estate, tourism, travel, private education, transport, logistics, trade and commerce, we have determined that 45% of our clients’ loans would need flexible accommodation on loan repayments,” according to an emailed statement from the Nairobi-based lender with a presence in seven nations including the Democratic Republic of Congo and Ethiopia.