Wazua
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Equity Bank 2020
Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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https://www.standardmedi...sh800m-tax-on-gains-row
Equity takes on KRA in sh.800mn tax on gains row. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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To get a good effect of COVID-19 on the financials Q1--7bn Q2--4.9bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 11/21/2018 Posts: 561 Location: Britain
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Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
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Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 11/21/2018 Posts: 561 Location: Britain
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VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. Thought when they were cancelling the payout, they clearly indicated that they did so to cushion themselves (conserve cash) against the effects of Covid on their bottomline. Spending the dividend cash to buy the DRC Branch, if indeed that is the case, must have been either an afterthought or poor planning on their part since they had already declared the dividend. Let us just say the so called 7.8B declared profit came from the 9B accrued from the cancelled dividend. If the dividend had been paid out, in reality, there would have been a Q3 loss to the tune of 1.2B. For me this is simple and clear. See the link below which explained how the dividend cash was to be expended:- https://www.businessdail...563718-qsnb18/index.html
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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Queen wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:[quote=Ericsson]To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. Thought when they were cancelling the payout, they clearly indicated that they did so to cushion themselves (conserve cash) against the effects of Covid on their bottomline. Spending the dividend cash to buy the DRC Branch, if indeed that is the case, must have been either an afterthought or poor planning on their part since they had already declared the dividend. Let us just say the so called 7.8B declared profit came from the 9B accrued from the cancelled dividend. If the dividend had been paid out, in reality, there would have been a Q3 loss to the tune of 1.2B. For me this is simple and clear. See the link below which explained how the dividend cash was to be expended:- https://www.businessdail...63718-qsnb18/index.html[/quote] The bank is his,shareholders can go hang themselves.Anchor shareholders like Norwegian investment fund are looking at capital gains which they can then cash out in future. Let's now see if the investment in DRC was a wise one. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 11/21/2018 Posts: 561 Location: Britain
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Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? I think @VVS misunderstood the article on the 66% share purchase of the DRC bank by Equity. The article talks of Equity Bank purchasing the 625,354 shares CUM-DIVIDEND. It does not say they spend the money meant for dividend payout to buy the shares. https://www.the-star.co....e-in-drc-bank-at-sh10bn/
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Rank: Member Joined: 3/16/2019 Posts: 313
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[Value of Equity digital deals overtakes branch bankingQuote:Data by the lender shows that the value of transactions on its digital platforms such as Equitel and EazzyBiz grew by 25 percent or Sh396 billion to Sh1.988 trillion to dwarf in-branch dealings recorded between March and September.
In contrast, the value of transactions on legacy channels, which include branch and automated teller machines (ATMs), dipped by 14 percent or Sh279 billion to Sh1.73 trillion.
“The silver lining for us was to use Covid-19 as the tailwind to push more customers to digital banking. Many may never go back to ‘brick and mortar’ banking,” said Mr Mwangi.
“Big transactions are now moving out of banking halls to digital transactions. We gave businesses corporate cash and liquidity management solutions and it is working.”
He explained that the EazzyBiz channel that mostly targets businesses now has about 20,000 customers with daily transactions averaging Sh3 billion.
Equity disclosures also show that 98 percent of transactions now happen outside the branch.
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Rank: Veteran Joined: 8/10/2014 Posts: 953 Location: Kenya
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Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 11/21/2018 Posts: 561 Location: Britain
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Ericsson wrote:watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
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Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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Queen wrote:Ericsson wrote:watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried. 86% of what? Please provide numbers/specifics. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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VituVingiSana wrote:Queen wrote:Ericsson wrote:watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried. 86% of what? Please provide numbers/specifics. 86% of gross loans and advances Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Queen wrote:Ericsson wrote:watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried. 86% of what? Please provide numbers/specifics. 86% of gross loans and advances Please provide numbers/specifics from the 3Q 2020 results. I can't find the "86% of gross loans and advances as NPLs" but I would appreciate more info. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,636 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Ericsson wrote:watesh wrote:Ericsson wrote:VituVingiSana wrote:Queen wrote:Angelica _ann wrote:Ericsson wrote:Ericsson wrote:To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn Q3--7.8bn Nine months profit 19.7bn Total Assets ksh.933bn Great performance under the circumstances, 1T here we come. How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who? The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item. Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase. What about the borrowings at Ksh,68bn? One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans. Equity bank doesn't do mortgages. What is the average tenure for a loan in Equity bank As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried. 86% of what? Please provide numbers/specifics. 86% of gross loans and advances Please provide numbers/specifics from the 3Q 2020 results. I can't find the "86% of gross loans and advances as NPLs" but I would appreciate more info. Some information is never put in the P&L statement. This is probably an insider information. Let's wait and see Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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FUNKY wrote:https://www.newtimes.co.rw/news/kenyas-banking-tycoon-mwangi-build-kigali-financial-towers Odd. Equity has steered away from owning real estate. I hope this isn't some sort of pressure from GoRw. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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