Equity Bank closes seven branches in South Sudan

File photo: Equity Bank CEO James Mwangi

Kenya’s Equity Bank Group has decided to shut down more than half of its
branches in war-ravaged South Sudan due to a battered local currency and
tough economic conditions, the group’s chief executive officer said.

James Mwangi, Equity's chief executive, told a shareholder meeting that the
bank had closed seven of its 12 branches in South Sudan.“I would like to
ask shareholders to treat South Sudan as a dormant company. We are just
maintaining a licence and you can’t maintain a licence unless you’re open,”
Mwangi said at the company’s annual general meeting yesterday.Since
December 2016,

Equity held assets worth Sh. 11.1 billion in South Sudan.However, the
business was reportedly operating in tough conditions, recording net
interest loss of Sh. 55 million and a loss before tax of Sh. 528
million.“Last year, that devaluation caused us to write off a loss of Sh. 6
billion ($58.14 million). It is not performance; it is what you could call
an economic meltdown,” he said.

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