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Equity Bank 2020
Ericsson
#101 Posted : Tuesday, March 16, 2021 1:27:54 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://www.businessdail...lending-to-smes-3323954

Equity Group has received Sh8.2 billion ($75 million) as a credit guarantee fund from pan-African financial institution, African Guarantee Fund in order to increase its lending to small businesses.
The fund brings the total credit flows aimed at supporting MSMEs to Sh52.5 billion.

The fund will help the bank reduce its loan provisions and conserve its balance sheets and boosts its profits. Equity is expecting to receive 125 million euros (Sh16.5 billion) loan facility signed two weeks ago with the European Investment Bank.

The bank also received a $100 million (Sh11 billion) credit facility from leading European Development Banks - DEG, FMO and CDC-UK.

In September, Equity Group signed a $50 million (Sh5.5 billion) loan facility with International Finance Corporation, and $100 million (Sh11 billion) from France’s development finance institution, Proparco in October.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
JoeNgugi
#102 Posted : Wednesday, March 17, 2021 7:02:38 PM
Rank: New-farer


Joined: 9/8/2018
Posts: 24
How do SMEs get these monies? What is the process or its still a loan with the same terms and conditions as other loans
Ericsson
#103 Posted : Monday, March 29, 2021 9:19:48 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.9bn

Nine months profit 19.7bn
Total Assets ksh.933bn

Q4--2.4bn
FY2020 Profit 22.2bn
Total Assets ksh.1.015 trillion

Restructure loan facilities worth KES 171 Billion [$ 1.55 Billion], or about 32% of the entire loan book in FY 2020.
KES 40 Billion of the restructured loans had normalized as of end December

https://www.nse.co.ke/ph...ar-ended-31-dec-2020.pdf
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#104 Posted : Monday, March 29, 2021 3:23:50 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
EQUITY REGIONAL SUBSIDIARIES PERFORMANCE
KES Billion
Tanzania
Customer Deposits----17.8
Loan Book------------15.2
Total Assets---------28.5
Profit Before Tax-----(0.4)

Uganda
Customer Deposits-----48.4
Loan Book-------------37.7
Total Assets----------61.8
Profit Before Tax------2.3

South Sudan
Customer Deposits------5.68
Loan Book--------------0.1
Total Assets-----------9.8
Profit Before Tax------1.1

Rwanda
Customer Deposits------27
Loan Book--------------21.3
Total Assets-----------38.8
Profit Before Tax------1.7

DRC
Customer Deposits------234
Loan Book--------------90.5
Total Assets-----------285.1
Profit Before Tax------1.6

KENYA
Customer Deposits------496.7
Loan Book--------------313.1
Total Assets-----------667.6
Profit Before Tax------14.2
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#105 Posted : Sunday, April 11, 2021 2:26:25 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://nation.africa/ke...sh234m-tax-claim-3357870
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kmucheke
#106 Posted : Thursday, April 22, 2021 12:30:59 PM
Rank: Member


Joined: 3/16/2019
Posts: 261
Uhuru presides over the official inauguration of Equity BCDC office block in Central Kinshasa, DR Congo.

LINK

Ericsson
#107 Posted : Tuesday, May 18, 2021 1:21:28 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://www.businessdail...nda-subsidiaries-3403996
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#108 Posted : Tuesday, May 18, 2021 1:22:52 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://www.businessdail...congo-bank-stake-3402878
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#109 Posted : Wednesday, June 02, 2021 9:47:37 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
Britam sold 20 million Equity bank shares in the course of 2020.
It's stake now reduced to a new low of 6.77%.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#110 Posted : Tuesday, June 08, 2021 11:20:18 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://www.businessdail...ty-afia-clinics-3429398

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#111 Posted : Saturday, June 19, 2021 12:31:15 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://kenyanwallstreet...ive-50-million-ifc-loan/
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
mlennyma
#112 Posted : Friday, June 25, 2021 10:28:32 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,116
Location: nairobi
47 prints
"Don't let the fear of losing be greater than the excitement of winning."
Ericsson
#113 Posted : Saturday, June 26, 2021 9:14:02 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
Equity group to resume dividend payment in 2022.
This was said by the CEO during the AGM yesterday.
Shareholders should prepare for another dividend drought in FY2021,third year in a row
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
mlennyma
#114 Posted : Saturday, June 26, 2021 10:30:43 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,116
Location: nairobi
Ericsson wrote:
Equity group to resume dividend payment in 2022.
This was said by the CEO during the AGM yesterday.
Shareholders should prepare for another dividend drought in FY2021,third year in a row

the guy is mean, cash dividend is not the only tool to reward shareholders
"Don't let the fear of losing be greater than the excitement of winning."
Ericsson
#115 Posted : Saturday, June 26, 2021 11:10:34 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
mlennyma wrote:
47 prints


Opportunity for Britam to sell some of its holdings and book a gain.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#116 Posted : Wednesday, August 04, 2021 1:38:14 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
https://allafrica.com/stories/202108030487.html

In 2009 Equity Bank ran one of the most successful campaigns that turned banking on its head, an ecstatic mimi ni member slogan that even featured a little girl of around 12 years old.

Today she would be around 22 years and if she could see a huge billboard the lender has put up along Ngong Road just outside Kenyatta Hospital, she would be familiar with the moniker member.

Equity, which became the first Kenyan bank to own more than Sh1 trillion in assets by buying financiers in East and Central Africa, had forgotten her, and this perhaps is a turning point.

In 2017 the lender's boss James Mwangi announced the divorce stating the bank was moving away from small businesses for being too risky, to lend instead corporates and the risk-free government.

"We are moving away from unsecured lending. IFRS 9 (International Financial Reporting Standard) requires you to use historical ratio to make provisions at point of booking the loan. This is not sustainable with a margin of seven percent," he said at the time.

Now Dr Mwangi who declared the brick and mortar branch is dead, is beating a hasty retreat and just announced the bank will open 60 branches across the country designed to return to the member as the bank re-discovers its roots.

Financial access

The move will take the branch network to 249 across the country which the lender says will enable it to serve millions of its customers better while also bringing banking services and financial access closer to the community.
"We are a community bank and we understand why it is important to bring financial services closer to the community. This will help transform their lives and grow their businesses. The Equity Group has already approved to increase our outlets by 60," Dr Mwangi said in Maralal town while commissioning the of Wings To Fly Programme.

This is a complete turnaround from the decorated CEO who boasted that his bank was just two percent short of fully shifting all its transactions onto digital platforms.

Dr Mwangi has been hammering the point home that the group altered its strategy to adopt to the changing environment and executed a rapid business transformation that saw 98 percent of all transactions being digital in count, and 65 percent of volume by value.

This strategy meant the lender could let go of staff even as the bank grew in size. Equity Bank had 8,000 employees in 2013 serving 8.4 million customers which came all the way down to 6,580 serving 11.2 million customers in 2019.

Transforming lives
The lender with a tagline going transforming lives one branch at a time had a footprint of 216 in 2013 which rose to 298 at the end of 2019.

Only acquisition of new banks saw a major shift in 2020 when the lender's branches across the region jumped to 336 and staff number swung to 7,119.

It is not just Equity alone that has seen this shift, over the last five years. Banks have shed 6,574 clerical jobs from a high of 18,539 in 2014 as the move towards digital banking over mobile phones allowed lenders to employ technology to eliminate mundane tasks, managing costs and increasing efficiency.

Basic services such as account opening, over the counter transactions and sales are moving onto digital platforms, which not only provide money transfer but also credit and savings, payments for goods and services as well as e-commerce.

Equity Bank officials declined to reply to our email inquiring the rationale behind the change in approach making it difficult to understand the new strategy.
Digital streams may have thinned following the Central Bank of Kenya order forcing banks allow free transfer of funds from lenders accounts to mobile money.

But even this is a modest value as Equity Bank said scrapping of fees on transactions lost them only Sh1.08 billion while KCB bank lost Sh1.5 billion.

The lenders may also be targeting higher charges which are levied on over the counter (OTC) transactions compared to online and mobile transactions.

Financial Sector Deepening (FSD) cost of banking 2018 survey said banks were charging up to Sh1,056 for OTC withdrawals while RTGS transfers done at the branch were the most expensive and significantly higher than those done over the mobile banking app and through internet banking.

Another possible explanation for physical expansion was given by NCBA managing director, Mr John Gachora, who said going forward more branches will open but their focus to sales as opposed to service as most service are now available on digital platforms.

Hire new staff

The decision to open 60 more local branches will remarkably change Equity and will mean deployment of billions of shillings to set up locations and hire new staff to operate them.

Location is another key factor since most urban areas are almost saturated with more than half of Kenya's bank branches- 794 branches or 53 percent Kenya's 1, 502 banking outlets found within Nairobi, Mombasa and Kiambu.

This leaves space in counties such as Nakuru, Kakamega, Bungoma, Meru, Kilifi, Machako and Kisii which are more populous but yet reported fewer bank concentration than Mombasa alone.

However the cost implication of setting up in rural areas can be inhibiting and will pose a challenge if Equity Bank is targeting such areas.

Dr Mwangi said the bank will conduct a feasibility study in Samburu's most volatile region, Baragoi, to determine whether it will qualify to benefit from the 60 new branches.

Opening a branch is a complex matter especially in rural underserved areas, which do not have buildings with specifications to host banks.

Setting up means that the lender will either commission new buildings or rent existing ones and do extensive renovations to boost security and branding.

These has seen lenders avoid far flung areas with Kenya's bottom 20 counties having less than 10 bank branches within their borders.

Security is another key issue with most remote areas having less government presence making banks especially vulnerable.

Equity Bank recently had to contend with this challenge shutting down their Matuu branch following a robbery incident last week.

The brazen daylight heist saw five armed robbers, who were armed with pistols raid the bank and made off with an unknown amount of money from the customers present and the tellers after a 10 minute heist.

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
sparkly
#117 Posted : Wednesday, August 04, 2021 11:40:23 PM
Rank: Elder


Joined: 9/23/2009
Posts: 7,997
Location: Enk are Nyirobi
Ericsson wrote:
https://allafrica.com/stories/202108030487.html

In 2009 Equity Bank ran one of the most successful campaigns that turned banking on its head, an ecstatic mimi ni member slogan that even featured a little girl of around 12 years old.

Today she would be around 22 years and if she could see a huge billboard the lender has put up along Ngong Road just outside Kenyatta Hospital, she would be familiar with the moniker member.

Equity, which became the first Kenyan bank to own more than Sh1 trillion in assets by buying financiers in East and Central Africa, had forgotten her, and this perhaps is a turning point.

In 2017 the lender's boss James Mwangi announced the divorce stating the bank was moving away from small businesses for being too risky, to lend instead corporates and the risk-free government.

"We are moving away from unsecured lending. IFRS 9 (International Financial Reporting Standard) requires you to use historical ratio to make provisions at point of booking the loan. This is not sustainable with a margin of seven percent," he said at the time.

Now Dr Mwangi who declared the brick and mortar branch is dead, is beating a hasty retreat and just announced the bank will open 60 branches across the country designed to return to the member as the bank re-discovers its roots.

Financial access

The move will take the branch network to 249 across the country which the lender says will enable it to serve millions of its customers better while also bringing banking services and financial access closer to the community.
"We are a community bank and we understand why it is important to bring financial services closer to the community. This will help transform their lives and grow their businesses. The Equity Group has already approved to increase our outlets by 60," Dr Mwangi said in Maralal town while commissioning the of Wings To Fly Programme.

This is a complete turnaround from the decorated CEO who boasted that his bank was just two percent short of fully shifting all its transactions onto digital platforms.

Dr Mwangi has been hammering the point home that the group altered its strategy to adopt to the changing environment and executed a rapid business transformation that saw 98 percent of all transactions being digital in count, and 65 percent of volume by value.

This strategy meant the lender could let go of staff even as the bank grew in size. Equity Bank had 8,000 employees in 2013 serving 8.4 million customers which came all the way down to 6,580 serving 11.2 million customers in 2019.

Transforming lives
The lender with a tagline going transforming lives one branch at a time had a footprint of 216 in 2013 which rose to 298 at the end of 2019.

Only acquisition of new banks saw a major shift in 2020 when the lender's branches across the region jumped to 336 and staff number swung to 7,119.

It is not just Equity alone that has seen this shift, over the last five years. Banks have shed 6,574 clerical jobs from a high of 18,539 in 2014 as the move towards digital banking over mobile phones allowed lenders to employ technology to eliminate mundane tasks, managing costs and increasing efficiency.

Basic services such as account opening, over the counter transactions and sales are moving onto digital platforms, which not only provide money transfer but also credit and savings, payments for goods and services as well as e-commerce.

Equity Bank officials declined to reply to our email inquiring the rationale behind the change in approach making it difficult to understand the new strategy.
Digital streams may have thinned following the Central Bank of Kenya order forcing banks allow free transfer of funds from lenders accounts to mobile money.

But even this is a modest value as Equity Bank said scrapping of fees on transactions lost them only Sh1.08 billion while KCB bank lost Sh1.5 billion.

The lenders may also be targeting higher charges which are levied on over the counter (OTC) transactions compared to online and mobile transactions.

Financial Sector Deepening (FSD) cost of banking 2018 survey said banks were charging up to Sh1,056 for OTC withdrawals while RTGS transfers done at the branch were the most expensive and significantly higher than those done over the mobile banking app and through internet banking.

Another possible explanation for physical expansion was given by NCBA managing director, Mr John Gachora, who said going forward more branches will open but their focus to sales as opposed to service as most service are now available on digital platforms.

Hire new staff

The decision to open 60 more local branches will remarkably change Equity and will mean deployment of billions of shillings to set up locations and hire new staff to operate them.

Location is another key factor since most urban areas are almost saturated with more than half of Kenya's bank branches- 794 branches or 53 percent Kenya's 1, 502 banking outlets found within Nairobi, Mombasa and Kiambu.

This leaves space in counties such as Nakuru, Kakamega, Bungoma, Meru, Kilifi, Machako and Kisii which are more populous but yet reported fewer bank concentration than Mombasa alone.

However the cost implication of setting up in rural areas can be inhibiting and will pose a challenge if Equity Bank is targeting such areas.

Dr Mwangi said the bank will conduct a feasibility study in Samburu's most volatile region, Baragoi, to determine whether it will qualify to benefit from the 60 new branches.

Opening a branch is a complex matter especially in rural underserved areas, which do not have buildings with specifications to host banks.

Setting up means that the lender will either commission new buildings or rent existing ones and do extensive renovations to boost security and branding.

These has seen lenders avoid far flung areas with Kenya's bottom 20 counties having less than 10 bank branches within their borders.

Security is another key issue with most remote areas having less government presence making banks especially vulnerable.

Equity Bank recently had to contend with this challenge shutting down their Matuu branch following a robbery incident last week.

The brazen daylight heist saw five armed robbers, who were armed with pistols raid the bank and made off with an unknown amount of money from the customers present and the tellers after a 10 minute heist.




They are defending their turf against an aggressively expanding NCBA.
Life is short. Live passionately.
Ericsson
#118 Posted : Thursday, August 19, 2021 1:05:00 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,855
Location: NAIROBI
EQUITY PBT bn
Q1--Ksh.11.7
Q2--Ksh.12.1
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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