Contents - Equity Bank Group

Notes to the Financial StatementsFor the year ended 31st December 200718. Income taxRecognised in the income statementIn millions of Kenya Shillings 2007 2006Current tax expenseCurrent year 454 334Adjustments for prior years - -454 334Deferred tax expenseOrigination and reversal of temporary differences 34 15Total income tax expense 488 349Reconciliation of effective tax rateIn millions of Kenya Shillings 2007 2007 2006 2006Profit before income tax 2,363 1,102Income tax using the enacted corporation tax rate 20% 454 30% 334Non-deductible expenses 20% 34 30% 15Tax exempt income 20% - 30% -Total income tax expense in income statement 20% 488 30% 349Income tax recognised in the balance sheetBalance brought forward 147 168Charge for the year 454 334Paid during the year (392) (355)209 14719. Earnings per shareBasic earnings per shareThe calculation of basic earnings per share as at 31 December 2007 is based on the profit attributable to ordinary shareholders ofKShs 1,891 million (2006: KShs 754 million) and the weighted average number of ordinary shares outstanding of 275 million (2006 :272 million), calculated as follows:562007 Annual Report and Financial Statements