Equity Bank has announced revised Bank Reference Rates for its customers as part of its latest review.
In a statement issued on September 9, the bank revealed that the rate will drop from 18.24 percent to 17.83 percent, effective immediately.
Furthermore, the bank stated that the review comes in response to the adjustment of the Central Bank Rate (CBR) on August 6, 2024, which was lowered from 13 percent to 12.75 percent.
The level of the CBR is reviewed and announced by the Monetary Policy Committee (MPC) at least every two months and its movements, both in direction and magnitude, signal the monetary policy stance.
“We wish to inform our customers and the general public that we have reduced Equity Bank’s Reference Rate (EBRR) from the current 18.24% to 17.83% effective 9th September 2024,” read the statement in part.
“Consequently, the final interest rate will consist of Equity Bank’s Reference Rate of 17.83% plus a margin, currently capped at a maximum of 8.5% per annum.”
Also Read: Equity Reveals Number of Scholars Sponsored in Ivy League Universities
This adjustment applies to all new Kenya Shilling-denominated credit facilities. The bank will continue to monitor market conditions and provide updates if further changes are necessary.
“We take this opportunity to thank you for your continued support and partnership. For any clarifications, please contact your Relationship Manager, your Branch, or through our Contact Centre on 0763 000 000,” Equity said.
Equity Bank Records Ksh29 billion Profit
This comes after the bank recorded a 12 percent increase in profit after tax in the first half of the year 2024.
In a statement dated August 12, the Group said it has recorded a half-year Profit after Tax of Ksh29.6 billion representing a 12 percent year-on-year growth, with earnings per share increasing to Ksh7.6 up from Ksh6.7.
Regional subsidiaries accounted for 50.2% of the profit before tax for the period. This performance is coupled with strong capital buffers with a core capital ratio of 15.8% and a total capital ratio of 18.4% versus regulatory threshold of 10.5% and 14.5% respectively.
Furthermore, Equity recorded a balance sheet growth of 6% which is above the prevailing inflation rate of 4%, bringing its total assets as of 30th June 2024 to Ksh1.75 trillion with the regional subsidiaries accounting for 49.7%.
Also Read: REVEALED: Billions Equity, KCB & Other Top Kenyan Banks Have Made in 2024
About Bank Reference Rates
Banks’ Reference Rate (BRR) is the base rate for lending by commercial banks and microfinance banks as well as for pricing mortgage products.
The Kenya BRR was introduced in July 2014 following discussions between commercial and microfinance banks, mortgage finance institutions, the Kenya Bankers Association (KBA), the Central Bank of Kenya (CBK), and The National Treasury.
BRR is part of their recommendations to explore ways of enhancing the supply of private-sector credit and mortgage finance in Kenya.
The primary purpose of the KBRR is to ensure that banks are transparent with respect to the cost and pricing of their products.
However, this is made possible through the KBRR framework that requires banks to disclose and explain to their customers the effective base rate (KBRR) and any additional premium (K) above the base rate.
Follow our WhatsApp Channel for real-time news updates!
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
