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2 Pages<12
Equity Bank 2019
VituVingiSana
#21 Posted : Friday, September 13, 2019 3:24:59 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,450
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Equity Bank will need more buys in regional growth plan
https://www.businessdail...0864-xk08gmz/index.html
> Will Equity need to raise capital?
Or reduce the dividend?
Or a scrip dividend?
Or Bodo is being overly cautious?

After all, Equity is profitable regionally and can expand slowly, sensibly and profitably using the new tools at its disposal. Instead of the "big ticket" deals, it can expand using the SME and MSME route using mobile banking.


Bodo article may be a reflection of James Mwangi thinking
Does Mwangi have the cash to buy more Equity shares via a Rights Issue? He is better off doing another Helios-like deal at a sensible price that values Equity at a fair value or keep reinvesting the current profits.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
watesh
#22 Posted : Friday, September 13, 2019 3:39:40 PM
Rank: Member


Joined: 8/10/2014
Posts: 740
Location: Kenya
VituVingiSana wrote:
Equity Bank will need more buys in regional growth plan
https://www.businessdail...0864-xk08gmz/index.html
> Will Equity need to raise capital?
Or reduce the dividend?
Or a scrip dividend?
Or Bodo is being overly cautious?

After all, Equity is profitable regionally and can expand slowly, sensibly and profitably using the new tools at its disposal. Instead of the "big ticket" deals, it can expand using the SME and MSME route using mobile banking.

They still have a bunch of stock left from the 400 million shares they created in 2015 plus I predict a flat dividend growth for FY 2019. I think they have the capital needed considering the Kenyan subsidiary doesn't need that much funding since the rate cap started. Deploying that money to acquire other banks and get a higher return may be a better option.
Ericsson
#23 Posted : Monday, September 23, 2019 2:12:04 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,450
Location: NAIROBI
Tanzania fines five banks for lax anti-money laundering controls

Tanzania’s central bank said on Monday it had fined five commercial banks over $800,000 (Sh83 million) for breaching anti-money laundering rules, the latest in a series of moves aimed at tightening regulation in the financial services sector.

The Bank of Tanzania (BoT) said in a statement the fines were imposed “for failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

I&M Bank was slapped with the biggest fine at TSh655 million (Ksh29.62 million), followed by Equity Bank (TSh580 million), UBL Bank (Tsh325 million), Habib African Bank (Tsh175 million) and African Banking Corporation (Tsh145 million).

https://www.businessdail...84128-29oynm/index.html

@vvs what is?
VituVingiSana
#24 Posted : Monday, September 23, 2019 8:03:51 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,450
Location: Nairobi
Ericsson wrote:
Tanzania fines five banks for lax anti-money laundering controls

Tanzania’s central bank said on Monday it had fined five commercial banks over $800,000 (Sh83 million) for breaching anti-money laundering rules, the latest in a series of moves aimed at tightening regulation in the financial services sector.

The Bank of Tanzania (BoT) said in a statement the fines were imposed “for failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

I&M Bank was slapped with the biggest fine at TSh655 million (Ksh29.62 million), followed by Equity Bank (TSh580 million), UBL Bank (Tsh325 million), Habib African Bank (Tsh175 million) and African Banking Corporation (Tsh145 million).

https://www.businessdail...84128-29oynm/index.html

@vvs what is?
No idea! Worrying. Of course, never discount that TZ doesn't like KE firms!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#25 Posted : Monday, September 23, 2019 10:25:14 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,291
Location: nairobi
VituVingiSana wrote:
Ericsson wrote:
Tanzania fines five banks for lax anti-money laundering controls

Tanzania’s central bank said on Monday it had fined five commercial banks over $800,000 (Sh83 million) for breaching anti-money laundering rules, the latest in a series of moves aimed at tightening regulation in the financial services sector.

The Bank of Tanzania (BoT) said in a statement the fines were imposed “for failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

I&M Bank was slapped with the biggest fine at TSh655 million (Ksh29.62 million), followed by Equity Bank (TSh580 million), UBL Bank (Tsh325 million), Habib African Bank (Tsh175 million) and African Banking Corporation (Tsh145 million).

https://www.businessdail...84128-29oynm/index.html

@vvs what is?
No idea! Worrying. Of course, never discount that TZ doesn't like KE firms!

Last time I checked, simba was the first KE bank in TZ
COOP 5,500; KCB 7,500; KNRE 100,000; KQ 221,100
Ericsson
#26 Posted : Tuesday, September 24, 2019 6:28:26 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,450
Location: NAIROBI
obiero wrote:
VituVingiSana wrote:
Ericsson wrote:
Tanzania fines five banks for lax anti-money laundering controls

Tanzania’s central bank said on Monday it had fined five commercial banks over $800,000 (Sh83 million) for breaching anti-money laundering rules, the latest in a series of moves aimed at tightening regulation in the financial services sector.

The Bank of Tanzania (BoT) said in a statement the fines were imposed “for failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

I&M Bank was slapped with the biggest fine at TSh655 million (Ksh29.62 million), followed by Equity Bank (TSh580 million), UBL Bank (Tsh325 million), Habib African Bank (Tsh175 million) and African Banking Corporation (Tsh145 million).

https://www.businessdail...84128-29oynm/index.html

@vvs what is?
No idea! Worrying. Of course, never discount that TZ doesn't like KE firms!

Last time I checked, simba was the first KE bank in TZ

Yes Simba was the first KE bank in Tz.It launched there in 1996.
Simba adhered to the rules
Ericsson
#27 Posted : Thursday, September 26, 2019 10:20:12 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,450
Location: NAIROBI
chiaroscuro
#28 Posted : Thursday, September 26, 2019 12:34:06 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,110
Location: Nairobi
Ericsson wrote:
https://twitter.com/OleItumbi/status/1177075788438523904


Itumbi has not told the story to the end. I'd be interested to hear how the bank resolved the issue.

Nevertheless; I have seen too many complaints on Twitter about money disappearing from Equity bank accounts. That's worrying.
Wakanyugi
#29 Posted : Thursday, September 26, 2019 12:43:27 PM
Rank: Veteran


Joined: 7/3/2007
Posts: 1,566
Ericsson wrote:
https://twitter.com/OleItumbi/status/1177075788438523904


I read somewhere that Equity was planning to reduce Finserve back to a Division of the bank, chiefly in order to control this thievery.

I am not sure I agree with this 'wielding a hammer to kill a fly approach.'The potential to grow Finserve as a subsidiary serving the wider market is the kind of game changer thinking that will finally take the fight to Safaricom.

But then the reputational harm to Equity from this conmanship is likely to be significant if nothing is done. But bringing the thieving techies back to HQ will not solve the problem either, otherwise the likes of KCB, even Safaricom with their centralized controls, would not be facing the same problem.
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
Ericsson
#30 Posted : Monday, October 14, 2019 1:17:28 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,450
Location: NAIROBI
https://www.businessdail...10018-x1sfku/index.html

Equity Bank is taking over a total of Sh2 billion worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited.
Equity Bank, for instance, has been revealed as the lender that provided Sh1.6 billion that was used to settle StanChart claims. StanChart wrote off Sh1.5 billion and opted to walk away from the debt-ridden firm with the Sh1.6 billion. “Subsequent to year end, the group and company signed a facility agreement amounting to Sh1.6 billion with Equity Bank Kenya Limited to restructure the loans previously held by Standard Chartered Bank Kenya and Standard Chartered Bank Tanzania,” EA Cables says in the report. Buyout of the Stanchart loans was completed in May. The cables manufacturer added that it has approached Equity to also take over a Sh161 million loan owed to Ecobank kenya and Sh285 million owed to SBM Bank Kenya.

“The new lender has offered the group a tenor of ten (10) years with a moratorium of two (2) years on principal repayments and a six (6) months moratorium on interest payments,” the cables manufacturer said of the negotiations with Equity.
Prior to taking over the loans from its rivals, Equity had already lent more than Sh2 billion to EA Cables.

Most of the cable manufacturer’s assets are pledged to Equity. EA Cables approached the bank to take over the loans which it is unable to repay on its own.

“The loans due to Ecobank Kenya and SBM Bank Kenya … are due and payable on demand and in the event that the lenders recall the loans due, the group and company do not have the ability to settle these loans in the normal course of business,” the company said.

This is a toxic deal/move by Equity bank;with the state of economy and kenya power,defaults are likely to reoccur by EA Cables
Extraterrestrial
#31 Posted : Monday, October 14, 2019 6:00:40 AM
Rank: New-farer


Joined: 11/17/2018
Posts: 60
Location: Mars
Ericsson wrote:
https://www.businessdail...10018-x1sfku/index.html

Equity Bank is taking over a total of Sh2 billion worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited.
Equity Bank, for instance, has been revealed as the lender that provided Sh1.6 billion that was used to settle StanChart claims. StanChart wrote off Sh1.5 billion and opted to walk away from the debt-ridden firm with the Sh1.6 billion. “Subsequent to year end, the group and company signed a facility agreement amounting to Sh1.6 billion with Equity Bank Kenya Limited to restructure the loans previously held by Standard Chartered Bank Kenya and Standard Chartered Bank Tanzania,” EA Cables says in the report. Buyout of the Stanchart loans was completed in May. The cables manufacturer added that it has approached Equity to also take over a Sh161 million loan owed to Ecobank kenya and Sh285 million owed to SBM Bank Kenya.

“The new lender has offered the group a tenor of ten (10) years with a moratorium of two (2) years on principal repayments and a six (6) months moratorium on interest payments,” the cables manufacturer said of the negotiations with Equity.
Prior to taking over the loans from its rivals, Equity had already lent more than Sh2 billion to EA Cables.

Most of the cable manufacturer’s assets are pledged to Equity. EA Cables approached the bank to take over the loans which it is unable to repay on its own.

“The loans due to Ecobank Kenya and SBM Bank Kenya … are due and payable on demand and in the event that the lenders recall the loans due, the group and company do not have the ability to settle these loans in the normal course of business,” the company said.

This is a toxic deal/move by Equity bank;with the state of economy and kenya power,defaults are likely to reoccur by EA Cables


When it rains, it pours 😭
Ericsson
#32 Posted : Monday, October 14, 2019 11:40:25 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,450
Location: NAIROBI
Extraterrestrial wrote:
Ericsson wrote:
https://www.businessdail...10018-x1sfku/index.html

Equity Bank is taking over a total of Sh2 billion worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited.
Equity Bank, for instance, has been revealed as the lender that provided Sh1.6 billion that was used to settle StanChart claims. StanChart wrote off Sh1.5 billion and opted to walk away from the debt-ridden firm with the Sh1.6 billion. “Subsequent to year end, the group and company signed a facility agreement amounting to Sh1.6 billion with Equity Bank Kenya Limited to restructure the loans previously held by Standard Chartered Bank Kenya and Standard Chartered Bank Tanzania,” EA Cables says in the report. Buyout of the Stanchart loans was completed in May. The cables manufacturer added that it has approached Equity to also take over a Sh161 million loan owed to Ecobank kenya and Sh285 million owed to SBM Bank Kenya.

“The new lender has offered the group a tenor of ten (10) years with a moratorium of two (2) years on principal repayments and a six (6) months moratorium on interest payments,” the cables manufacturer said of the negotiations with Equity.
Prior to taking over the loans from its rivals, Equity had already lent more than Sh2 billion to EA Cables.

Most of the cable manufacturer’s assets are pledged to Equity. EA Cables approached the bank to take over the loans which it is unable to repay on its own.

“The loans due to Ecobank Kenya and SBM Bank Kenya … are due and payable on demand and in the event that the lenders recall the loans due, the group and company do not have the ability to settle these loans in the normal course of business,” the company said.

This is a toxic deal/move by Equity bank;with the state of economy and kenya power,defaults are likely to reoccur by EA Cables


When it rains, it pours 😭


Equity bank now holds a total of ksh.4bn EA Cables loan
Horton
#33 Posted : Monday, October 14, 2019 3:36:34 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,468
Location: Nairobi
Ericsson wrote:
Extraterrestrial wrote:
Ericsson wrote:
https://www.businessdail...10018-x1sfku/index.html

Equity Bank is taking over a total of Sh2 billion worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited.
Equity Bank, for instance, has been revealed as the lender that provided Sh1.6 billion that was used to settle StanChart claims. StanChart wrote off Sh1.5 billion and opted to walk away from the debt-ridden firm with the Sh1.6 billion. “Subsequent to year end, the group and company signed a facility agreement amounting to Sh1.6 billion with Equity Bank Kenya Limited to restructure the loans previously held by Standard Chartered Bank Kenya and Standard Chartered Bank Tanzania,” EA Cables says in the report. Buyout of the Stanchart loans was completed in May. The cables manufacturer added that it has approached Equity to also take over a Sh161 million loan owed to Ecobank kenya and Sh285 million owed to SBM Bank Kenya.

“The new lender has offered the group a tenor of ten (10) years with a moratorium of two (2) years on principal repayments and a six (6) months moratorium on interest payments,” the cables manufacturer said of the negotiations with Equity.
Prior to taking over the loans from its rivals, Equity had already lent more than Sh2 billion to EA Cables.

Most of the cable manufacturer’s assets are pledged to Equity. EA Cables approached the bank to take over the loans which it is unable to repay on its own.

“The loans due to Ecobank Kenya and SBM Bank Kenya … are due and payable on demand and in the event that the lenders recall the loans due, the group and company do not have the ability to settle these loans in the normal course of business,” the company said.

This is a toxic deal/move by Equity bank;with the state of economy and kenya power,defaults are likely to reoccur by EA Cables


When it rains, it pours 😭


Equity bank now holds a total of ksh.4bn EA Cables loan


Something tells me there may be more than meets the eye here.

Perhaps a guarantee from Kuramo 🤷🏽‍♂️
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