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Equity Bank FY 2018 net profit up 5%
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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From Atlas Mara FY18 Results of its banking business; Underlying bank operating result sinclude outperformance vs. 2017 in Nigeria and Zimbabwe,in-line performance in Botswana,Mozambique,and Rwanda,and underperformance in Tanzania and Zambia Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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Ericsson wrote:From Atlas Mara FY18 Results of its banking business;
Underlying bank operating result sinclude outperformance vs. 2017 in Nigeria and Zimbabwe,in-line performance in Botswana,Mozambique,and Rwanda,and underperformance in Tanzania and Zambia Tanzania looks like a very hard economy to invest in for 'outsiders'. I wonder how their won companies perform? 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: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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It’s a crappy deal. These banks are just average players in their respective markets with some doing badly
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Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
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Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly They will use money to turn it round. Towards the goal of financial freedom
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly Equity was probably just looking for an in using an existing licensee as it did in DRC. Then invest money and go digital using Equitel. Perhaps use Vodacom/M-Pesa as a partner too. TZ will be merged. RW will be merged. BPR is a mass-market bank in RW and Equity has experience with bottom of the pyramid lending. Equity is going where few KE banks are venturing. No immediate cash impact given it is a share swap. 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: 10,804 Location: NAIROBI
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VituVingiSana wrote:Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly Equity was probably just looking for an in using an existing licensee as it did in DRC. Then invest money and go digital using Equitel. Perhaps use Vodacom/M-Pesa as a partner too. Is digital succeeding in other countries like it has done in kenyaTZ will be merged. What was the performance in Tz last year.Will the acquisition make any difference or sink it further in losses.RW will be merged. BPR is a mass-market bank in RW and Equity has experience with bottom of the pyramid lending. What is the market share of BPR in Rwanda.What synergy is equity benefitting
Equity is going where few KE banks are venturing. No immediate cash impact given it is a share swap. There will be capital injectionsWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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.. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly Equity was probably just looking for an in using an existing licensee as it did in DRC. Then invest money and go digital using Equitel. Perhaps use Vodacom/M-Pesa as a partner too. Is digital succeeding in other countries like it has done in kenyaDigital banking is becoming, at different speeds, the norm the world over.
TZ will be merged. What was the performance in Tz last year.Will the acquisition make any difference or sink it further in losses. It depends on the acquisition price of the TZ business. The fixed costs, after acquisition costs, of the combined entity may not rise much.RW will be merged. BPR is a mass-market bank in RW and Equity has experience with bottom of the pyramid lending. What is the market share of BPR in Rwanda.What synergy is equity benefitting
Google for market share. Equity picks up lot of customers who can be transitioned to the digital platform at a low cost/customer. Low marginal fixed costs given Equity already has platforms eg Equitel, mKey, M-Kesho in place. Equity is going where few KE banks are venturing. No immediate cash impact given it is a share swap. There will be capital injections ATMA may buy more shares in EGH for cash which could be used to bolster the new subsidiaries. Just as Equity did in UG and DRC, there will be a period of consolidation and learning about the new markets. Benefits will show up from 2021 onwards. 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: 10,804 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly Equity was probably just looking for an in using an existing licensee as it did in DRC. Then invest money and go digital using Equitel. Perhaps use Vodacom/M-Pesa as a partner too. Is digital succeeding in other countries like it has done in kenyaDigital banking is becoming, at different speeds, the norm the world over.
TZ will be merged. What was the performance in Tz last year.Will the acquisition make any difference or sink it further in losses. It depends on the acquisition price of the TZ business. The fixed costs, after acquisition costs, of the combined entity may not rise much.RW will be merged. BPR is a mass-market bank in RW and Equity has experience with bottom of the pyramid lending. What is the market share of BPR in Rwanda.What synergy is equity benefitting
Google for market share. Equity picks up lot of customers who can be transitioned to the digital platform at a low cost/customer. Low marginal fixed costs given Equity already has platforms eg Equitel, mKey, M-Kesho in place. Equity is going where few KE banks are venturing. No immediate cash impact given it is a share swap. There will be capital injections ATMA may buy more shares in EGH for cash which could be used to bolster the new subsidiaries. Just as Equity did in UG and DRC, there will be a period of consolidation and learning about the new markets. Benefits will show up from 2021 onwards. I don't see ATMA buying more shares in EGH.On the contrary I see when market conditions are right they will dispose off that stake. Wake up mzee Equitel failed,failed and was a big failure. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Horton wrote:It’s a crappy deal. These banks are just average players in their respective markets with some doing badly Equity was probably just looking for an in using an existing licensee as it did in DRC. Then invest money and go digital using Equitel. Perhaps use Vodacom/M-Pesa as a partner too. Is digital succeeding in other countries like it has done in kenyaDigital banking is becoming, at different speeds, the norm the world over.
TZ will be merged. What was the performance in Tz last year.Will the acquisition make any difference or sink it further in losses. It depends on the acquisition price of the TZ business. The fixed costs, after acquisition costs, of the combined entity may not rise much.RW will be merged. BPR is a mass-market bank in RW and Equity has experience with bottom of the pyramid lending. What is the market share of BPR in Rwanda.What synergy is equity benefitting
Google for market share. Equity picks up lot of customers who can be transitioned to the digital platform at a low cost/customer. Low marginal fixed costs given Equity already has platforms eg Equitel, mKey, M-Kesho in place. Equity is going where few KE banks are venturing. No immediate cash impact given it is a share swap. There will be capital injections ATMA may buy more shares in EGH for cash which could be used to bolster the new subsidiaries. Just as Equity did in UG and DRC, there will be a period of consolidation and learning about the new markets. Benefits will show up from 2021 onwards. Wake up mzee Equitel failed,failed and was a big failure. Well, then there is still mKey, M-Kesho and the tie-up with M-Pesa that could be rolled out in the new markets. Or they can buy/license/adopt a platform that is successful in other regions and adapt it to their customers' needs. Innovation as required. I'd like to see what Equity has done in DRC and if that is a model for other countries ex-Kenya. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Equity Bank FY 2018 net profit up 5%
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