Our focus is on banks because it has been one of our economic drivers in recent studies despite macro-environment challenges such as inflation,fiscal policies. Banks have shown an upward trajectory pertinent to profit after tax and overall bank performance in recent years as well as its subsidiaries across East Africa.

Based on its current Performance trading at KES 43.35, Equity Group reported a 20.9% increase in profit before tax (PBT), reaching KES 20.41Bn in Q1-2024.Its key strength being strong growth in interest income, driven by an expanded loan book and government securities. Subsidiaries contributed 63% to PBT, showcasing significant potential across six countries of operation.From Investor Outlook with a dividend payout of KES 4.00 per share in FY-2023, the group is expected to deliver even better returns in FY-2024. Target price: KES 54.00, offering a 24.6% upside

Equity Bank Group

Based on the data provided, Equity Group presents a strong investment opportunity. Its impressive 20.9% growth in profit before tax (PBT) for Q1-2024 to KES 20.41Bn, driven by robust interest income and subsidiaries contributing 63% to PBT, underscores the company’s steady expansion across its six markets. The consistent dividend payouts, including KES 4.00 per share for FY-2023, further highlight its commitment to rewarding shareholders.

better avenue for new investors growth and opportunity in the long-run.Encouragingly, investing in Equity Group by purchasing shares now could prove advantageous for those looking to align with its projected growth and robust financial health.