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Equity Bank 2020
#41 Posted : Wednesday, June 24, 2020 11:56:35 AM
Rank: Chief

Joined: 1/3/2007
Posts: 17,071
Location: Nairobi
watesh wrote:
VituVingiSana wrote:
watesh wrote:
Ericsson wrote:
Equity group ends discussion with Atlas Mara group on acquisition of Atlas businesses in Rwanda,Tanzania, Zambia and Mozambique.

There must be something fishy with those assets that Equity has been so hesitant to buy ever since last year as compared to BCDC bank in DRC which was a done deal really fast...... My take is that Equity should first make their TZ subsidiary bigger and more profitable before going further down south. KCB and DTB are profitable in TZ so it's not impossible.

I think the DRC deal was easier since it was a single bank in a single market and will be integrated into Equity DRC vs buying several small banks in new markets.

The latter takes more work, injecting capital, integration, etc. Perhaps not the time to do so but certainly something to think about in the future to become a pan-african bank.

It has been been almost 7 years in Tanzania and barely any growth over the past 4 years. It has been in losses in 2018, 2019 and start 2020 with a fat decline (-30%) in the top line revenue. KCB with an equally sized footprint in Tanzania was bringing in close to Ksh1 billion PBT from TZ unit. Equity need to rethink strategy and overhaul management there.
TZ is a tough place for Kenyan firms. Even KCB had a rough time in TZ for years but may have finally turned the corner.

UG, RW, DRC and even SS have been profitable for Equity.

Regional expansion is not easy but important as Kenya becomes very competitive.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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