Global rating agency Moody’s has assigned Equity Bank a first-time B1 local-currency ratings based on the Bank’s strength.
The agency pointed out Equity Bank’s strong credit profile backed by its use of digital and alternative distribution channels as its key strengths.
The Bank also has solid liquidity buffers and a resilient funding profile supported by its retail funded depositor base. As of March 2017, Equity Bank was the most profitable bank as per the published financial results.
“The rating reflects the Bank’s intrinsic credit strength, significant market size, acceptable risk management practices, profitable business model, prudent capital levels and support from its shareholders. We continue to protect ourselves against slow business volumes by focusing on high margin plays and cutting on operational and funding costs”, said Moody’s in a press statement.
It further projects that Equity Bank’s profitability metrics will remain strong, supported by its low cost funding, an increasing proportion of non-interest income, and an efficient cost structure with the extensive use of digital and alternative distribution channels.
Commenting on the achievement, Equity Group Holding CEO & MD, Dr. James Mwangi said that the ratings reflect on the Bank’s strong market position within the regional banking space making it well positioned to take advantage of positive growth, infrastructure and other developments within the local economy.
“As the Bank enters the next phase of growth, there is a renewed need to mobilize funds to finance major infrastructural developments as well as local and regional SMEs. This is bolstered by the fact that we have continued to reinforce our corporate product offering, management team and IT reliability and capacity in order to improve customer service and offer a more complete product suite to cross-sell to existing and new customers in Kenya and the region,” Dr. Mwangi said.