Equity Group Holdings trailed below in-house expectations to record a surprise 5.1% y/y slump in net earnings to KES 43.74Bn throughout 2023. Growth momentum was grounded by a faster surge in pre-provision operating expenses compared to operating incomes.
The Board of Directors recommend a first and final dividend of KES 4.00 per share. This distribution fell marginally below our expected total dividend range. This year’s payment translates to a dividend payout ratio of 34.5%.
Recommendation - We maintain our BUY recommendation on Equity Group Holdings on account of its robust commercial momentum across regional subsidiaries and adequate coverage against protracted market risks.
