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4 Pages<1234>
Equity Bank 2020
VituVingiSana
#41 Posted : Wednesday, June 24, 2020 11:56:35 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,272
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.
https://mobile.twitter.c...310542861799424/photo/1

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
Ericsson
#42 Posted : Monday, July 06, 2020 6:54:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
https://www.theeastafric...88832-photoxz/index.html
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#43 Posted : Sunday, July 12, 2020 10:13:26 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
Equity Group eyes Sh50bn long-term debt in three years

Equity Group is eyeing up to Sh50 billion from international financiers in the next three years as it seeks to boost its liquidity and capital positions.

Group CEO James Mwangi told investors in a recent virtual annual general meeting that the board wants to reinforce the lender’s liquidity and capital positions through a mix of medium-term and long-term debts.

This will take the group’s borrowed funds beyond the Sh56.7 billion it has in its books at the end of December 2019.
Equity’s Sh22.89 billion loan or about 40 per cent of its current borrowings will mature by March 2023, the information in its latest annual report shows.
Equity has taken a cash preservation strategy in the wake of Covid-19, including recalling Sh9 billion in dividends and dropping the purchase of four banks outside Kenya.

“Forfeiture of dividends was a good gesture to all our partners that we are also in need as we called on them to support our customers,” Mr Mwangi told investors.

He said the bank had taken a proactive management strategy of preserving capital and liquidity as the group anticipates Covid-19 and its impact to last for at least 18 months.

https://www.businessdail...92028-6q9hrrz/index.html
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
aemathenge
#44 Posted : Wednesday, August 05, 2020 6:00:29 PM
Rank: Elder


Joined: 10/18/2008
Posts: 3,346
Location: Kerugoya
This man James Mwangi and Equity! It is so personal for him and has always been right from the very beginning.


Quote:
“I had gone with [EBS executives] to Central Bank because they had been condemned with closure.

Suddenly, the Governor looks at me, as I try to plead their case for more time, and he says [to me], ‘if it was you who was talking of turnaround, then I would give you the opportunity’.

I was between a rock and a hard place; if I hadn’t made the sacrifice to join them, then they would [have had] to close,” recalls Mwangi.

So, in a seemingly fool-hardy move, the young banker agreed to take on mounting debt, unpaid salaries, dwindling membership, and declining morale at Equity.

He even remortgaged his own house to inject some desperately needed cash into the business, inextricably linking his fate, and hard-won reputation, with that of the beleaguered building society.


Source Link From Forbes Africa

Wakanyugi
#45 Posted : Thursday, August 06, 2020 7:44:14 AM
Rank: Veteran


Joined: 7/3/2007
Posts: 1,634
aemathenge wrote:
This man James Mwangi and Equity! It is so personal for him and has always been right from the very beginning



For the really successful ones, business is always personal. A passion, an obsession even, rather than a job. Think Bezos, Jobs, Branson or even Dangote here at home.

In other news, I noticed this sentence from your link:

"Local banks are increasingly taking substantial loans from global funds such as the IFC, European Investment Bank and Agence Française de Développement, attracted by relatively more favourable terms of the debt including lower interest rates and longer maturity."

It seems like all that newly printed QE money is trying to find returns. How long before foreign buyers start to pile up on emerging markets?

Do I sense opportunity, or is that sanitizer my hands have been drinking finally getting to my head?
"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
#46 Posted : Tuesday, August 11, 2020 8:55:08 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
Equity group holdings announces completion of the acquisition of Banque Commerciale du Congo.
https://mobile.twitter.c...058063860146177/photo/1

Consideration price reduced from USA $105mn to 95mn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#47 Posted : Tuesday, August 11, 2020 9:13:53 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,272
Location: Nairobi
Ericsson wrote:
Equity group holdings announces completion of the acquisition of Banque Commerciale du Congo.
https://mobile.twitter.c...058063860146177/photo/1

Consideration price reduced from USA $105mn to 95mn

JM alikataa! Laughing out loudly And got a discount. Applause
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#48 Posted : Tuesday, August 11, 2020 10:55:14 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
https://tradingroom.co.k...uity-acquires-bank-bcdc/
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
watesh
#49 Posted : Tuesday, August 11, 2020 11:55:53 AM
Rank: Member


Joined: 8/10/2014
Posts: 847
Location: Kenya
Ericsson wrote:
https://tradingroom.co.ke/equity-acquires-bank-bcdc/


Now they can go head to head with Raw Bank
heri
#50 Posted : Tuesday, August 11, 2020 12:41:46 PM
Rank: Member


Joined: 9/14/2011
Posts: 783
Location: nairobi
watesh wrote:
Ericsson wrote:
https://tradingroom.co.ke/equity-acquires-bank-bcdc/


Now they can go head to head with Raw Bank


Anyone know their market share in DRC now?
watesh
#51 Posted : Tuesday, August 11, 2020 1:58:20 PM
Rank: Member


Joined: 8/10/2014
Posts: 847
Location: Kenya
heri wrote:
watesh wrote:
Ericsson wrote:
https://tradingroom.co.ke/equity-acquires-bank-bcdc/


Now they can go head to head with Raw Bank


Anyone know their market share in DRC now?


As per their annual report 2019, Rawbank has a 27% market share in deposits and $2.1 billion in terms of assets. However, they are less profitable than Equity's DRC's subsidiary before the acquisition. In 2019 they had a net income of $7 million (ksh700m) a drop from $23 million (ksh2.3 billion) in 2018. Equity DRC had a net income of Ksh1.23 billion so with the addition of BCDC, post covid economic effects, they should technically match Rawbank's highest recorded net income.
Ericsson
#52 Posted : Friday, September 11, 2020 10:52:20 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
https://estatecloud.co.k...per-over-ksh-600m-loan/

Equity Bank has threatened to auction properties located along Kampala’s Lumumba avenue over failure by the owner, Simbamanyo Estates to service a loan agreement.

Equity Bank yesterday issued a legal notice warning the property firm that it had until October 7 to pay at least 30 per cent (Ksh. 339M) of the amount or face auction.

“All potential buyers, tenants and occupants of the properties contained on Lumumba Avenue and Mutungo-Luzira are informed that if Simbamanyo does not pay to the bank the 30 per cent as ordered by the court, public auction of the mortgaged properties will take place on October 8,” read the notice.

Simbamanyo had taken the matter to court disputing the amount claimed by equity and challenging the legality of loans drawn from Equity Bank Kenya.

Uganda’s High Court had earlier, on Monday, granted Simbamanyo’s prayer to stay the sale of the properties by Equity Bank but added that in order to uphold the decision, the property firm must make the 30 per cent payment.

The dispute stems from an agreement by Equity Bank Kenya and Equity Bank Uganda to advance about Ksh. 600 million to Simbamanyo Estates in August 2012, with at least Ksh. 350 million drawn from Equity Bank Kenya and Ksh. 250 million from Equity Bank Uganda.

According to court documents, the consolidated sum of the loan including interest and fees would come to a total of Ksh. 810 million. However, the real estate firm challenged the figure, claiming it was only aware of Ksh. 719 million.

Among other accusations, Simbamanyo has accused Equity Bank Uganda of providing Equity Bank Kenya with an illegal cover to conduct business in Uganda where it has no jurisdiction.

The real estate company raised an issue on the inclusion of Equity Bank Kenya and Bank One of Mauritius (which provided a bridge facility of $10M) in the loan document despite the fact that it had never applied to the two banks and had no bank accounts with them.

However Equity Bank refuted the claim, stating that Bank One was drafted into the transaction at the request of Simbamanyo who acting through NISK capital had sought to restructure the loan in 2017, with a Ksh. 1 billion Standby Letter of Credit from Bank One.

The bank argued that the real estate company was aware of all the parties involved in the transaction and had benefited from it.

Simbamanyo has also accused the bank of absolute contempt of court for advertising the properties for sale before the expiry of a 30 day period given to pay the 30 percent.

“We find it irregular to find that lawyers for the bank [Equity] are publishing a response to the caveat emptor and giving our client 30 days to clear 30 per cent and before this time elapses they have advertised the same properties for sale,” the firm’s lawyers told the Daily Monitor.

Simbamanyo had sought the funds for the construction of a hotel property in Mutungo, Luzira north-east of Kampala and facilitate the takeover of a prior facility advanced to Simbamanyo by Shelter Afrique.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#53 Posted : Sunday, September 27, 2020 8:37:05 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
heri wrote:
watesh wrote:
Ericsson wrote:
https://tradingroom.co.ke/equity-acquires-bank-bcdc/


Now they can go head to head with Raw Bank


Anyone know their market share in DRC now?

You will know when they announce Q3 results in November or next year when they release FY results
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#54 Posted : Sunday, September 27, 2020 11:43:50 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,272
Location: Nairobi
https://www.businessdail...ns-drc-expansio-2373184 Equity betting big on commissions in DRC expansion
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ebenyo
#55 Posted : Monday, September 28, 2020 11:15:55 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,876
Location: Kitale
VituVingiSana wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/equity-betting-big-commissions-drc-expansio-2373184 Equity betting big on commissions in DRC expansion





This means the prospects of the bank to grow their is weak.You cannot relie commisions from currency exchange to grow a bank.
Towards the goal of financial freedom
Ericsson
#56 Posted : Monday, September 28, 2020 2:38:02 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
Ebenyo wrote:
VituVingiSana wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/equity-betting-big-commissions-drc-expansio-2373184 Equity betting big on commissions in DRC expansion





This means the prospects of the bank to grow their is weak.You cannot relie commisions from currency exchange to grow a bank.


Forex commissions is the bread and butter for banks in DRC.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
watesh
#57 Posted : Monday, September 28, 2020 2:46:09 PM
Rank: Member


Joined: 8/10/2014
Posts: 847
Location: Kenya
Ebenyo wrote:
VituVingiSana wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/equity-betting-big-commissions-drc-expansio-2373184 Equity betting big on commissions in DRC expansion





This means the prospects of the bank to grow their is weak.You cannot relie commisions from currency exchange to grow a bank.


This is less risky income than giving out loans. Its better to build out on this income as you build the risk profiles of the clients in that country. By the lending becomes a very stable business in DRC, they will have built up a massive capital base to take on large corporate funding projects.
VituVingiSana
#58 Posted : Monday, September 28, 2020 6:17:46 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,272
Location: Nairobi
Ebenyo wrote:
VituVingiSana wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/equity-betting-big-commissions-drc-expansio-2373184 Equity betting big on commissions in DRC expansion

This means the prospects of the bank to grow their is weak.You cannot relie commisions from currency exchange to grow a bank.
How is Safaricom's transactions "commission" business doing?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#59 Posted : Tuesday, September 29, 2020 11:01:29 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
Ebenyo wrote:
VituVingiSana wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/equity-betting-big-commissions-drc-expansio-2373184 Equity betting big on commissions in DRC expansion





This means the prospects of the bank to grow their is weak.You cannot relie commisions from currency exchange to grow a bank.


PWC added that the only adverse event was the loss of a major customer who withdrew his deposits to reduce his "assets concentration risk at the bank".
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#60 Posted : Monday, October 05, 2020 12:39:07 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,992
Location: NAIROBI
watesh wrote:
[quote=Ericsson]Equity group ends discussion with Atlas Mara group on acquisition of Atlas businesses in Rwanda,Tanzania, Zambia and Mozambique.
https://mobile.twitter.c...310542861799424/photo/1[/quote]
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.



https://www.businessdail...uity-group-snub-2457004

London-based Atlas Mara Limited is set to sell a 100 percent stake in its Mozambican banking subsidiary to Nigeria’s Access Bank after Equity Group walked out of the deal in June.

The Kenyan banking multinational later decided to terminate the deal, citing increased risk from the outbreak of the Covid-19 pandemic. Equity would have also been required to inject additional capital into the banks, most of which are in losses.

Atlas Mara says it has reached a new deal to sell BancABC Mozambique to Access Bank, adding that more divestitures could follow.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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