Equity expects more staff to exit this year
The bank says it targets to digitise most of its processes by end of the year, with daily mobile loan processing at about 37,000
Equity Bank Group yesterday said it expects about 400 staff to exit the lender this year by natural attrition, adding to the 660 who left last year.
This is in line with the trend in the industry where banks are increasingly investing in digital platforms to cut operation costs due to reduced interest earnings.
The largest lender by customer deposit accounts, at about 9.6 million, however said it will continue to recruit selectively. It will largely focus on relationship managers for its existing branches, which are hubs for its growing agents and merchants.
“As we digitise, we are convert- ing all our branches into SME centres which requires staff to do relationship management,” group’s managing director James Mwangi told an investor briefing in Nairobi yesterday. The listed bank said it targets to digitise most of its processes by end of the year, with daily mobile loan processing at about 37,000 via its Equitel platform.
Mwangi said about Sh30 billion were disbursed through mobile platforms in nine months through September, compared with just Sh1.5 billion the same period last year.
“Once we rope asset finance, mortgages, SMEs and corporate loans to be originated online, we expect the online applications to be about 60,000 to 75,000 on average daily,” he said.
The bank’s net profit for the nine months rose by 16.99 per cent to Sh15.01 billion compared to Sh12.80 billion the same period last year.
“Mobile digital banking processed nearly 3.5 million loans totalling Sh30 billion which represented 84 per cent of the loans granted by the bank in Kenya,” Mwangi said.
The lender mobilised Sh15.21 billion more in deposits to reach Sh331.30 billion.
Loans rose by a marginal 3.03 per cent to Sh3271.38 billion, while net interest income increased 26.37 per cent to Sh2.35 billion. Investment in government securities rose 80.78 per cent to Sh93.1 billion.
“Market have reallocated resources based on risk-return trade-offs. The person whop will feel the pain is the consumer,” Mwangi said.”Each bank is being affected differently and separately based on the structure of the balance sheet,” Mwangi said.
Equity Bank CEO James Mwangi