Equity has announced a 7% drop in its first half of its net profit as it copes with the implementation of the interest capping law. автокредит под залог
In the bank’s six month of its financial year, its profit stood at Sh. 9.4 billion compared to its Sh. 10 billion profit in 2016.
James Mwangi, Equity Group’s CEO at an investor briefing on Tuesday, said that the capping of interest rates had birthed a negative impact in Kenya’s economy. “The banking industry is going through a difficult environment,” Mr Mwangi told investors.
Case in point, Equity’s loan book shrunk from Sh. 269 billion to Sh. 265 billion as the bank withheld lending to the private sector.
Mr. Mwangi, however, said the bank was majoring more on stability than profitability as it adjusts itself into the new lending system.
Written by Collins Gathogo.
