Jamani wrote:Barrywhite wrote:Why do some guys here believe Raila would frustrate equity? If l remember correctly, Raila himself was the guest of honour in opening Equity Bank branches in Bondo, Siaya & Homa Bay. He himsefl encouraged locals to get loans from Equity to develop their businesses. Jetlink in which Raila has considerable shares banks with 3 banks, including Equity. Where does this perception that he would frustrate Equity is coming from?
Separately, Equity needs a few years to reach Safaricom. Granted Safaricom has come under pressure due to tariff pricing and market regulation, but at this rate, Equity need 2.5 - 3 years to reach safaricom's profitability.
It will be in the interest of RAO to protect Equity for some reasons you have mentioned above and for political reasons.
However in my opinion it will not be that easy for Equity to march Safcom, the assumption of 2.5 to 3 years means that safcom will stagnate at the same levels or competition will eat into it, well what if one operator closes shop and this could also happen within the same period....
With the independence of SS, growth of the SMEs, growth of the lower middle class, the transition of the EAC into a seamless economic block & EAC COMESA & SADC merging into one economic block by 2015, credit & banking awareness, agency banking.
With the above even with the rise in inflation, 2012 elections & with a conservative yoy growth of 30%, i see EBL becoming the most profitable co. surpassing safcom by 2015 - 2016 as they've already strategically set themselves apart & in the right path & are innovative on mass products.
One should travel to various countrysides to see what EBL has done & i mean from Rumuruti to Siaya, Lamu to Mumias etc & you'll realise what i mean.
Their asset base is also on double digit growth & their efficiency on Assets can be seen on their ROA when compared to that of KCB & their asset base might touch 200b or close by the end of the year.
Any guy who'll scoop the presidency won't mess with this giant unless he's ready for a meltdown.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary