Equity Group 3Q21 net earnings edged up by 78.64% to KES 26.87Bn which was above our expectations of a KES 19.26Bn PAT, while the EPS also grew by 77.61% to KES 6.93. The impressive growth in the bottom line was mainly driven by a 25.46% growth in operating income to KES 80.46Bn and a 65.17% decline in Loan Loss provisioning to KES 5.14Bn. This was in line with our expectations backed by improving economic conditions in operating countries and the sector's performance.
Reginal Subsidiaries drive growth: The BCDC bank in Congo recorded an impressive 125% y/y surge in PAT to KES 2.2Bn on the back of improving macro- economic conditions. BCDC continues to be the most profitable regional subsidiary and we believe that going forward, DRC will be a key driver of growth. The subsidiary's ROaE of 11.1% in 3Q21 (versus 10.0% in 3Q20) still remains below the group's average of 24.0%.
