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Equity Bank Results FY2010
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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I've reconsidered my earlier position on KCB... anything below 24 seems like a good deal. I wish to take EQB @26, 26.5 max if i can get in. Any advice / comments on my prices? "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Member Joined: 9/21/2006 Posts: 422 Location: Nairobi
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erifloss wrote:synergia wrote:erifloss wrote:jerry wrote:Thinking of RoA and and KCB, should they rent out part of their premises and use less space as they serve customers faster. EB owns few premises that they operate in I think. As compared to most banks, due to the rapid expansion Equity operates more on leased property and does not own lots of property as compared to the other banks. Apart from their headquarters at Upperhill, i don't know of any other building they own. IMHO, Equity is good at 'nursing' businesses but when they mature they never know how to take care of them. This will be their own undoing as most businesses that are able to take and repay huge loans move on to banks that can take care of their 'needs' when they are at points of being able to sustain their growths. FYI equity dont even own the upperhill building its on leasehold from some guyz "names witheld". I'd love to see a break up schedule of the different FA headers in their books. I'm completely surprised, I've always thought all along that the building at upperhill belongs to them. I think the bld belongs to UAP Insurance (Joe Wanjui, the World Bank's landlord)
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Rank: Veteran Joined: 12/9/2010 Posts: 894 Location: Nairobi
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Layman wrote:erifloss wrote:synergia wrote:erifloss wrote:jerry wrote:Thinking of RoA and and KCB, should they rent out part of their premises and use less space as they serve customers faster. EB owns few premises that they operate in I think. As compared to most banks, due to the rapid expansion Equity operates more on leased property and does not own lots of property as compared to the other banks. Apart from their headquarters at Upperhill, i don't know of any other building they own. IMHO, Equity is good at 'nursing' businesses but when they mature they never know how to take care of them. This will be their own undoing as most businesses that are able to take and repay huge loans move on to banks that can take care of their 'needs' when they are at points of being able to sustain their growths. FYI equity dont even own the upperhill building its on leasehold from some guyz "names witheld". I'd love to see a break up schedule of the different FA headers in their books. I'm completely surprised, I've always thought all along that the building at upperhill belongs to them. I think the bld belongs to UAP Insurance (Joe Wanjui, the World Bank's landlord) this is new, i have always thought they own the building. Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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Tommy wrote:Layman wrote:erifloss wrote:synergia wrote:erifloss wrote:jerry wrote:Thinking of RoA and and KCB, should they rent out part of their premises and use less space as they serve customers faster. EB owns few premises that they operate in I think. As compared to most banks, due to the rapid expansion Equity operates more on leased property and does not own lots of property as compared to the other banks. Apart from their headquarters at Upperhill, i don't know of any other building they own. IMHO, Equity is good at 'nursing' businesses but when they mature they never know how to take care of them. This will be their own undoing as most businesses that are able to take and repay huge loans move on to banks that can take care of their 'needs' when they are at points of being able to sustain their growths. FYI equity dont even own the upperhill building its on leasehold from some guyz "names witheld". I'd love to see a break up schedule of the different FA headers in their books. I'm completely surprised, I've always thought all along that the building at upperhill belongs to them. I think the bld belongs to UAP Insurance (Joe Wanjui, the World Bank's landlord) this is new, i have always thought they own the building. I'd love to know the properties they own. Any ordinary shareholder should always check on this carefully as it is the cushion of last resort for them after every creditor has been taken care of in case things go haywire! 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: New-farer Joined: 1/8/2011 Posts: 48 Location: muranga
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erifloss wrote:Tommy wrote:Layman wrote:erifloss wrote:synergia wrote:erifloss wrote:jerry wrote:Thinking of RoA and and KCB, should they rent out part of their premises and use less space as they serve customers faster. EB owns few premises that they operate in I think. As compared to most banks, due to the rapid expansion Equity operates more on leased property and does not own lots of property as compared to the other banks. Apart from their headquarters at Upperhill, i don't know of any other building they own. IMHO, Equity is good at 'nursing' businesses but when they mature they never know how to take care of them. This will be their own undoing as most businesses that are able to take and repay huge loans move on to banks that can take care of their 'needs' when they are at points of being able to sustain their growths. FYI equity dont even own the upperhill building its on leasehold from some guyz "names witheld". I'd love to see a break up schedule of the different FA headers in their books. I'm completely surprised, I've always thought all along that the building at upperhill belongs to them. I think the bld belongs to UAP Insurance (Joe Wanjui, the World Bank's landlord) this is new, i have always thought they own the building. I'd love to know the properties they own. Any ordinary shareholder should always check on this carefully as it is the cushion of last resort for them after every creditor has been taken care of in case things go haywire! This is very interesting reading..
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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So Equity owns the computers, movable furniture, vehicles, ... Do they've a training school? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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Surealligator wrote:ecstacy wrote:(A)- KCB profit after tax was up 76% to KShs. 7.2 Bn.
- Equity profit after tax was up 68% to KSh.7 Billion and customer deposits up 50% to KSh.104 Bn.
(B) - KCB net interest income grew by 36% to stand at KShs. 19.6 Bn (21% increase in the bank’s loan book [KShs.148 Bn] and reduced cost of funds)
- Equity interest income grew by 28% to KSh.13.8 Bn (81% increase in interest income from Government Securities and 20% surge in interest income from loans and advances)
(C) KCB Earnings per Share (diluted & basic ) - Kshs.2.76 whilst Equity's stands at KSh.1.93.
(D) KCB asset base KShs.251B whilst Equity is KSh.143 Bn.
When looking at a growth firm, I'm more interested in capital growth as compared to dividends...looking at the assets and performance above, Equity is doing a lot more with less for it to even be comparable to KCB. @Ecstasy I agree with you very much. But that is being theoretical. Lets go down to what matters. Making money. Okay, philosophy does not make money. Money is made by buying low and either getting extra bonanza dividends or selling for capital gains. Anything else wont wash. In other words, if you get into the stock market because a company is nice but does not put the bacon or a bigger hot dog on the table, it is as good as grinding water. Speculators, Punters, etc know that if I can wait, I will be able to buy Equity at 25 or less. So, why hold or buy it now when I can make more through capital gains than the 80 cents. Further, we are on the eve of an election year. Wait you see. At the end of the day, what are you doing investing without getting to enjoy some of the money today? What is wrong with buying BBK at 51 last december, sell at 70 two months later. I might hate BBK, I know they made a one off 3.5b etc. The only time BBK matters to me is when it helps me make 20 bob per share in two months. Explanations, ranting, comparisons etc won't count much if Equity won't give a superior return this time as others are giving their shareholders handsome dividends. Then, we get into Equity when it hits rock bottom. Remember there was a time Equity was trading at 33 (330 b4 split) All quoted companies will only benefit you if you know how to move around making maximum returns at specific times instead of being a slave to a few which you never sell even when it makes business sense to dispose. Do you know there are people currently buying Access Kenya: Ati it is cheap, very cheap. They don't know the company is dying and revival is next to impossible. Olympia: You want to make money in between the wild fluctuation but the day it will die, all your capital will go with it. Eveready: From 2.50 to 3 bob is super capital gains. When did you last buy Eveready batteries? Check this out... http://www.youtube.com/w...4Gg&feature=related
Haha! Like the expressions & the link..I agree with you mate. I believe the discussion parameters are undefined. Is one a speculator or investor? If investor, what investment period are we factoring? Your moves seem largely speculative... the higher the risk, the higher the return or money or loss made...as a balance to make some money on the NSE I believe one needs to speculate (mpango wa kando) and invest (mama watoto) at the same time...
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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guru267 wrote:ecstacy wrote:
When looking at a growth firm, I'm more interested in capital growth as compared to dividends...looking at the assets and performance above, Equity is doing a lot more with less for it to even be comparable to KCB.
Looks at KCB's three year plan on cost to income and ROA.. If they manage to bring these to industry average Equity will have nothing on them.. KCB dividend payout is good..best be..the stock had lagged like a problem...KCB have the craziest wage bill in the industry. According to Oduor-Otieno, McKinsey & Company consultants reportedly have 24 or so months to complete REVIEW KCB BUSINESS MODEL, OPERATING STRUCTURES & PROCESSES to make it more efficient and productive while setting the stage for their leap to the next level. This includes review of the bank's corporate and governance structures, business model, job roles & people placement, risk management and mitigation mechanisms, employee performance management and reward frameworks as well as IT infrustructure and subsidiary businesses, amongst other areas... By the time KCB finish or is it start.. paying and implementing all this...likely in phases, don't we think that EB or even DTB will have grown at a faster rate? I can then consider KCB quite seriously...
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Rank: User Joined: 6/27/2008 Posts: 709 Location: Velayat-e Faryab
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ecstacy wrote:guru267 wrote:ecstacy wrote:
When looking at a growth firm, I'm more interested in capital growth as compared to dividends...looking at the assets and performance above, Equity is doing a lot more with less for it to even be comparable to KCB.
Looks at KCB's three year plan on cost to income and ROA.. If they manage to bring these to industry average Equity will have nothing on them.. KCB dividend payout is good..best be..the stock had lagged like a problem...KCB have the craziest wage bill in the industry. According to Oduor-Otieno, McKinsey & Company consultants reportedly have 24 or so months to complete REVIEW KCB BUSINESS MODEL, OPERATING STRUCTURES & PROCESSES to make it more efficient and productive while setting the stage for their leap to the next level. This includes review of the bank's corporate and governance structures, business model, job roles & people placement, risk management and mitigation mechanisms, employee performance management and reward frameworks as well as IT infrustructure and subsidiary businesses, amongst other areas... By the time KCB finish or is it start.. paying and implementing all this...likely in phases, don't we think that EB or even DTB will have grown at a faster rate? I can then consider KCB quite seriously... @Ecstacy Well thought out views. It reminds me of a time we almost climbed on each other with KJ (Kinyanjui of 52 (54) million prison warden award) when I said KQ is likely not to perform well after Brian Davies left for a Brown Kenyan to take over. (I hope this raises your temperature for the sake of debate). On the same measure, I criticized the removal of Gareth George from KCB to replace him with a Brown guy earning far less than George was getting. Why the difference? Why does Naikuni get less than what Brian Davies was getting? Is it the academic papers or what? Why is Mwangi so successful? Can he earn what Jan Muhammed ( or something like that) is earning today if he is employed at BBK? Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own
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Rank: Chief Joined: 1/3/2007 Posts: 18,353 Location: Nairobi
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@surealligator: What does Jan Muhammad [of TPSEA] make? [Plus he is in hotels while Mwangi is in banks] Who says Naikuni gets less than Davies was paid? [BTW, where did you get the numbers? What does TN make?] Actually, Terry Davidson replaced Gareth George. GG was kicked out coz he got tough with defaulters! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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