Equity : Financial Statement as at 31st December 2021

EQUITY GROUP HOLDINGS PLC AUDITED FINANCIAL STATEMENTS AND OTHER DISCLOSURES FOR THE YEAR ENDED 31ST DECEMBER 2021

STATEMENT OF FINANCIAL POSITION AS AT

1. ASSETS

1. Cash (both local & foreign)
2. Balances due from Central Bank of Kenya
3. Kenya Government and other securities held for dealing purposes
4. Financial assets at fair value through profit and loss
5. Investment securities:

1. Held to maturity:
2. 1. Kenya Government securities
   2. Other securities
3. Available for sale:
4. 1. Kenya Government securities
   2. Other securities

1. Deposits and balances due from local banking institutions
2. Deposits and balances due from banking institutions abroad
3. Tax recoverable
4. Loans and advances to customers (net)
5. Balances due from group companies
6. Investments in associates
7. Investments in subsidiary companies
8. Investments in joint ventures
9. Investment properties
10. Property and equipment
11. Prepaid lease rentals
12. Intangible assets
13. Deferred tax asset
14. Retirement benefit asset
15. Other assets
16. TOTAL ASSETS

1. LIABILITIES

1. Balances due to Central Bank of Kenya
2. Customer deposits
3. Deposits and balances due to local banking institutions
4. Deposits and balances due to foreign banking institutions
5. Other money market deposits
6. Borrowed funds
7. Balances due to group companies
8. Tax payable
9. Dividends payable
10. Deferred tax liability
11. Retirement benefit liability
12. Other liabilities
13. TOTAL LIABILITIES

1. SHAREHOLDERS' FUNDS
   35. Paid up / assigned capital
   36. Share premium / (discount)
   37. Revaluation reserve
   38. Retained earnings / (accumulated losses)
   39 Statutory loan loss reserve
   40. Other reserves
   41. Proposed dividends
   42. Non-controlling interests

1. TOTAL SHAREHOLDERS' FUNDS
2. TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS

STATEMENT OF COMPREHENSIVE INCOME

1. INTEREST INCOME

1.1 Loans and advances

1.2 Government securities

1.3 Deposits and placements with banking institutions

1.4 Other interest Income

1.5 Total interest income

2. INTEREST EXPENSES

2.1 Customer deposits

2.2 Deposits and placements from banking institutions

2.3 Other interest expenses

2.4 Total interest expenses

1. NET INTEREST INCOME
2. NON-INTERESTINCOME

1. Fees and commissions income on loans & advances
2. Other fees and commissions income
3. Foreign exchange trading income
4. Dividend income
5. Other income
6. Total non-interest income

1. TOTAL OPERATING INCOME
2. OPERATING EXPENSES

1. Loan loss provision
2. Staff costs
3. Directors' emoluments
4. Rental charges
5. Depreciation on property and equipment
6. Ammortisation charges
7. Other operating expenses
8. Total operating expenses

1. Profit / (loss) before tax and exceptional items

1. Exceptional items - Gain on bargain purchase

1. Profit / (loss) after exceptional items
   10. Current tax
   11. Deferred tax
   12. Profit / (loss) after tax and exceptional items
2. Minority interest
   13. Profit / (loss) after tax and exceptional items and minority interest
   14. Other comprehensive income

1. Gains / (losses) from translating the financial statements of foreign operations

1. Fair value changes in available for sale financial assets
2. Remeasurement of defined benefit obligation
3. Share of other comprehensive income of associates
4. Income tax relating to components of other comprehensive income

1. Other comprehensive income for the year net of tax
2. Total comprehensive income for the year
   Earnings per share - Basic & diluted Dividend per share - Declared

EQUITY BANK (KENYA)		EQUITY GROUP HOLDINGS PLC			OTHER DISCLOSURES				EQUITY BANK (KENYA)			EQUITY GROUP HOLDINGS PLC
							LIMITED
LIMITED
BANK	COMPANY	GROUP											BANK						COMPANY	GROUP
31st Dec	31st Dec	31st Dec	31st Dec	31st Dec	31st Dec									31st Dec	31st Dec			31st Dec	31st Dec		31st Dec	31st Dec
2020	2021	2020	2021	2020	2021										2020		2021			2020	2021		2020	2021
Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	Shs. '000'	1) NON-PERFORMING LOANS AND ADVANCES		(Audited)	(Audited)		(Audited)	(Audited)		(Audited)	(Audited)
(Audited)	(Audited)	(Audited)	(Audited)	(Audited)	(Audited)
a)	Gross non-performing loans and advances		42,824,644	35,470,102			-	-		59,392,899	53,855,751
							b) Less interest in suspense			6,157,258	6,581,408			-	-		8,765,884	9,351,743
13,027,022	13,433,637	8,818,038	11,102,776	44,484,008	62,747,113
c) Total non-performing loans and advances (a-b)	36,667,386	28,888,694			-	-		50,627,015	44,504,008
16,633,521	13,723,722	-	-	16,633,521	13,723,722
	d) Less loan loss provision			22,350,223	19,055,037			-	-		28,296,995	27,663,281
-	-	-	-	-	-
	e)	Net non- performing loans (c-d)		14,317,163	9,833,657			-	-		22,330,020	16,840,727
-	-	-	-	-	-		f)	Discounted value of securities			14,317,163	9,833,657			-	-		22,330,020	16,840,727
195,157,006	339,082,615	-	-	217,407,885	394,101,448		g)	Net NPLs exposure (e-f)			-		-			-	-		-	-
13,390,327	12,605,835	-	-	15,842,417	13,707,113		2)	INSIDER LOANS AND ADVANCES
13,390,327	12,605,835	-	-	13,390,327	12,605,835			4,635,346	5,448,385			-	-		5,484,014	7,872,267
-	-	-	-	2,452,090	1,101,278		a)	Directors, shareholders and associates
181,766,679	326,476,780	-	-	201,565,468	380,394,335		b)	Employees				5,776,376	6,949,088			-	-		7,919,910	9,838,368
162,290,072	215,880,077	-	-	162,309,318	215,880,077		c)	Total insider loans and advances and other facilities	10,411,722	12,397,473			-	-		13,403,924	17,710,635
19,476,607	110,596,703	-	-	39,256,150	164,514,258		3) OFF BALANCE SHEET ITEMS
		-	-	29,543,160	71,016,771
9,516,400	10,579,240		a)	Letter of credit, guarantees and acceptances		73,879,069	84,420,733			-	-		104,002,031	118,887,152
					b)	Forwards,swaps and options			35,124,888	31,858,978			-	-		35,124,888	31,858,978
80,808,444	71,642,727	-	-	156,432,181	95,293,948		c)	Other contigent liabilities			-		-			-	-		-	-
-	239,076	54,326	-	279,439	562,166		d)	Total contigent liabilities			109,003,957	116,279,711			-	-		139,126,919	150,746,130
313,065,151	381,742,909	-	-	477,847,189	587,775,071		4)	CAPITAL STRENGTH
652,737	607,160	-	-	-	-		a)	Core capital				70,268,038	93,843,221			-	-		119,668,525	135,753,752
-	-	-	-	-	-		b)	Minimum statutory capital			1,000,000	1,000,000			-	-		4,173,124	4,173,124
-	-	80,451,544	81,234,820	-	-		c)	Excess / (deficiency)			69,268,038	92,843,221			-	-		115,495,401	131,580,628
-	-	-	-	-	-		d)	Supplementary capital			21,850,000	38,652,350			-	-		33,609,907	50,430,660
	e)	Total capital (a+d)				92,118,038	132,495,571			-	-		153,278,432	186,184,412
-	-	-	-	5,575,912	5,580,558
	f) Total risk weighted assets			566,959,169	704,635,701			-	-		809,585,432	1,051,431,620
5,334,684	4,446,229	11,814	10,473	15,903,898	15,199,979
		Ratios
-	-	-	-	-	-
6,496,942	8,533,952	-	-	9,621,193	10,738,263		g)	Core capital / total deposit liabilities		14.1%		14.5%			-	-		16.2%	14.2%
11,268,837	12,878,475	90,055	113,318	13,206,930	14,939,828		h)	Minimum statutory ratio			8.0%		8.0%			-	-		8.0%	8.0%
-	-	-	-	-	-		i)	Excess / (deficiency) (g-h)			6.1%		6.5%			-	-		8.2%	6.2%
15,689,023	20,505,150	550,967	7,308,054	28,157,999	33,234,957		j)	Core capital / total risk weighted assets		12.4%		13.3%			-	-		14.8%	12.9%
							k)	Minimum statutory ratio			10.5%		10.5%			-	-		10.5%	10.5%
667,649,767	877,414,892	89,976,744	99,769,441	1,015,093,315	1,304,913,824
	l) Excess / (deficiency) (j-k)			1.9%		2.8%			-	-		4.3%	2.4%
-	-	-	-	-	-		m) Total capital / total risk weighted assets		16.2%		18.8%			-	-		18.9%	17.7%
	n)	Minimum statutory ratio			14.5%		14.5%			-	-		14.5%	14.5%
420,236,822	469,671,798	-	-	740,800,779	958,977,000		o)	Excess / (deficiency) (m-n)			1.7%		4.3%			-	-		4.4%	3.2%
603,550	-	-	-	-	-		p) Adjusted core capital / total deposit liabilities*	14.2%		14.5%			-	-		16.2%	14.2%
75,907,728	178,781,156	-	-	-	-		q) Adjusted core capital / total risk weighted assets*	12.5%		13.3%			-	-		14.8%	12.9%
	r) Adjusted total capital / total risk weighted assets*	16.3%		18.8%			-	-		19.0%	17.7%
5,674,800	3,751,309	-	-	9,927,450	4,427,745
	5)	LIQUIDITY
64,279,082	95,333,081	10,937,529	11,461,062	87,220,864	123,912,325
	a)	Liquidity ratio				73.1%		92.4%			-	-		59.3%	63.4%
153,152	12,397	-	-	-	-
	b)	Minimum statutory ratio			20.0%		20.0%			-	-		20.0%	20.0%
720,990	-	-	62,504	1,640,859	925,351
	c)	Excess / (deficiency) (a-b)			53.1%		72.4%			-	-		39.3%	43.4%
-	7,000,000	-	-	-	-
-	-	-	-	1,338,555	970,766
-	-	-	-	2,404,916	1,268,608
13,376,223	16,465,530	440,830	1,346,771	33,119,092	38,240,659						GROWTH IN DEPOSITS									GROWTH IN TOTAL ASSETS
580,952,347	771,015,271	11,378,359	12,870,337	876,452,515	1,128,722,454							(In Shs Millions)											(In Shs Millions)
30,000,000	30,000,000	1,886,837	1,886,837	1,886,837	1,886,837		1,200,000					958,977			1,400,000						1,304,914
	1,000,000									1,200,000
9,964,132	9,964,132	15,325,264	15,325,264	15,325,264	15,325,264																		1,015,093
							740,801
5,160,545	(322,075)	-	-	(4,378,592)	(6,316,207)		800,000								1,000,000
41,572,743	66,757,564	61,386,284	58,365,979	118,765,898	146,780,570		600,000					482,752					800,000							673,683
-	-	-	-	576,960	171,039				373,143	422,758					600,000			524,466	573,385
-	-	-	-	-	-		400,000
-	-	-	11,321,024	-	11,321,024		200,000										400,000
-	-	-	-	6,464,433	7,022,843											200,000
		-
86,697,420	106,399,621	78,598,385	86,899,104	138,640,800	176,191,370												-
				2017	2018	2019	2020	2021
							2017		2018	2019		2020	2021
667,649,767	877,414,892	89,976,744	99,769,441	1,015,093,315	1,304,913,824

34,069,068	40,042,329	-	-	52,033,992	63,816,320				GROWTH IN PROFIT BEFORE TAX
				(In Shs Millions)
19,086,254	26,027,769	-	-	20,936,048	29,453,698
247,435	450,346	422,924	603,150	548,485	868,056		60,000
246,308	133,216	-	-	246,308	206,956							51,881
53,649,065	66,653,660	422,924	603,150	73,764,833	94,345,030		50,000
10,602,273	13,367,359	-	-	13,717,169	17,877,502		40,000				31,477
				28,463
69,538	142,019	-	-	1,324,960	1,547,215		30,000		26,882		22,170
2,956,656	3,721,930	12,529	570,062	3,573,913	6,109,339
13,628,467	17,231,308	12,529	570,062	18,616,042	25,534,056		20,000
40,020,598	49,422,352	410,395	33,088	55,148,791	68,810,974		10,000
5,770,609	6,766,149	-	-	6,619,616	7,743,510
	-
2017	2018	2019	2020	2021
8,384,805	8,959,322	-	-	16,052,314	21,601,439
3,690,302	3,810,531	-	-	6,210,112	8,186,655
-	-	606,800	8,703,347	-	-
5,932,193	3,337,767	10,046	(97,023)	9,626,039	7,043,811	*The adjusted capital ratios include the expected credit loss provisions added back to capital in line with the CBK guidance note issued in April 2018 on
23,777,909	22,873,769	616,846	8,606,324	38,508,081	44,575,415
implementation of IFRS 9.
63,798,507	72,296,121	1,027,241	8,639,412	93,656,872	113,386,389
23,357,937	2,359,783	-	(1,168)	26,631,273	5,844,707	Proposed Dividend
The Board of Directors has recommended a dividend of Kenya Shillings three (Shs 3.00), for each ordinary share on the issued and paid-up share capital
9,694,384	11,096,447	28,328	10,204	15,418,429	19,108,213
22,685	38,187	24,906	35,515	123,778	181,817	of the Company for the Financial Year ended 31 December 2021. Subject to Shareholders' approval, the dividend will be payable on or before 30th June
212,461	285,475	3,530	1,174	377,478	460,985	2022, to the members of the Company on the share register of the Company on the closure date of 20th May 2022.
2,897,288	2,684,601	1,797	1,779	5,349,609	5,240,378
1,014,002	971,519	-	-	1,251,548	1,987,182	Annual General Meeting
12,392,407	13,817,798	753,238	153,261	23,512,357	28,682,087
49,591,164	31,253,810	811,799	200,765	72,664,472	61,505,369	A general meeting will be held on 23rd June 2022. Details to be communicated in due course.
14,207,343	41,042,311	215,442	8,438,647	20,992,400	51,881,020
-	-	-	-	1,177,390	-	.Message from the Directors
14,207,343	41,042,311	215,442	8,438,647	22,169,790	51,881,020	The statement of financial position, the statement of comprehensive income and the disclosures presented above have been prepared from the financial
(7,599,106)	(8,117,434)	(61,687)	(161,189)	(10,306,675)	(11,425,908)
records of the Company and its subsidiaries which have been audited by PricewaterhouseCoopers Limited (PwC). The Auditors have issued an unqualified
7,395,831	(740,056)	5,574	23,263	8,236,431	(383,498)
14,004,068	32,184,821	159,329	8,300,721	20,099,546	40,071,614	opinion on the Financials. These published statements are also available on the Group's website http:/www.equitygroupholdings.com/investor-
-	-	-	-	(310,148)	(897,185)	relations and the board approved them on Monday, 21st March 2022.
14,004,068	32,184,821	159,329	8,300,721	19,789,398	39,174,429
						To get a full picture of the Group's performance, the complete set of audited financial statements will be available on http:/www.equitygroupholdings.
-	-	-	-	411,243	4,173,515	com/investor-relations after 4th April 2022 or from the Company Secretary at our offices at Equity Centre, 9th Floor, Hospital Road, Upper Hill.
2,779,632	(5,482,620)	-	-	2,964,356	(7,098,035)
-	-	-	-	(635,591)	786,750
-	-	-	-	-	-
-	-	-	-	-	-		Signed................................						Signed................................
2,779,632	(5,482,620)	-	-	2,740,008	(2,137,770)
16,783,700	26,702,201	159,329	8,300,721	22,839,554	37,933,844		Prof. Isaac Macharia						Dr. James Mwangi, CBS
466.80	1,072.83	0.04	2.20	5.24	10.38		Group Chairman
						Group Managing Director & CEO
-	233.33	-	-	-	-

Approved by David Ngata 22.03.2022

Equity Group Holdings Plc and Equity Bank (Kenya) Limited are regulated by the Central Bank of Kenya.