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Equity Bank HY 2011 results
selah
#111 Posted : Wednesday, July 27, 2011 12:26:58 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@genghis I hold COOP which I think has a diversified portfolio of products and its base is a lilbit secure given that its a cooperative movement, the next bank that I want to own is KCB am waiting for the right price to jump in.

looking at equity bank its non performing loans and insider lending are too high in my opinion

If it has more than 4 billion non performing loans in a normal operating yr tell me how that would be if there was a substantial shock on the SME(its niche)as we are currently witnessing this yr.

But as they say the risky the business the higher the returns I will definitely own some once the price become attractive next yr.







'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
kenyainvestor
#112 Posted : Wednesday, July 27, 2011 1:01:31 PM
Rank: Member

Joined: 7/12/2011
Posts: 194
@selah, there is not that much of a discrepancy in insider lending in comparison to peers so as to cause alarm.
Insider lending as a proportion of total lending using 1st Quarter 2011 Results:

Standard Chartered Bank of Kenya - 3.6%
The Co-operative Bank - 4.8%
Kenya Commercial Bank - 5.9%
Equity Bank - 6.8%
Barclays Bank of Kenya - 8.1%

NOTE: Bank of Kigali - 2%
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Sufficiently Philanga....thropic
#113 Posted : Thursday, July 28, 2011 12:01:20 PM
Rank: Elder

Joined: 9/23/2010
Posts: 2,225
Location: Sundowner,Amboseli
Serous volumes at Equity, just above 2million shares traded at noon!
Foreigners have been picking up this stock, jus wondering whether it has to do with the agency banking thing, which CEO Mwangi says now processes 20% of the transactions!
@SufficientlyP
mlefu
#114 Posted : Thursday, July 28, 2011 12:59:27 PM
Rank: Elder

Joined: 2/11/2007
Posts: 1,680
Location: nairobi
at 24 for the last 24 hours...damn
Sufficiently Philanga....thropic
#115 Posted : Thursday, July 28, 2011 2:26:14 PM
Rank: Elder

Joined: 9/23/2010
Posts: 2,225
Location: Sundowner,Amboseli
KCB's PAT growth of 41.57% in H1 though great compared to its performance in previous years a far cry to Equity's 57.37%.
Equity still the bank to beat!
@SufficientlyP
FUNKY
#116 Posted : Monday, August 01, 2011 8:21:07 AM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
Cde Monomotapa
#117 Posted : Monday, August 01, 2011 8:53:23 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
FUNKY wrote:
http://www.theeastafrican.co.ke/business/Equity+looks+to+corporates++SMEs+for+growth/-/2560/1210782/-/iu1nr0z/-/index.html

Sad
the deal
#118 Posted : Monday, August 01, 2011 8:54:14 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery

Equity Bank needs to change tactic...interest income needs to start contributing more to total operating income, with non interest income contributing 47% of total operating income I don't think that segment can grow further, depending on how fast the regional subsdiaries grow, Equity Bank will struggle to replicate the 50+% growth we have seen in the past 5 years cos the Kenyan operations have reached some form of maturity.
youcan'tstopusnow
#119 Posted : Monday, August 01, 2011 9:16:56 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Agency Banking approved in Rwanda. Mambo bado!
GOD BLESS YOUR LIFE
selah
#120 Posted : Monday, August 01, 2011 10:58:43 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
FUNKY wrote:
http://www.theeastafrican.co.ke/business/Equity+looks+to+corporates++SMEs+for+growth/-/2560/1210782/-/iu1nr0z/-/index.html


I dont think the analogy below is correct.

Quote:
However, Equity has seen a significant in on the interest it pays for customer deposits and other deposits. Interest expense — the charges Equity has to incur on customer deposits — went up by 46 per cent between the first quarter and the second quarter of the year.

In the three months to March 2011, Equity’s interest expense stood at $4.7 million. But between April to June the interest expense stood at $6.6 million.

Many analysts say that this is because a rising interest rate regime has forced the bank to pay more for its deposits as clients weigh the option of investing in government securities at better rates as opposed to deposit rates offered by banks —though, this might not be the case because Equity’s deposits come from individuals and clients current and savings accounts.


Why would a writer quote analysts and then say this might no be the case.

I think the reason Equity is paying more in interest expenses is because of the subsidized loans it receives from development banks and the Govt to lend to SMEs.For instance, youthfund and women fund loans which I think Equity is supposed to pay btwn 7 & 10% interest on the money,Now if few women/youth groups qualify for the loans equity is forced to pay interest on money that has not been lent hence the high interest expense.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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