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KCB or Equity Bank?
sparkly
#21 Posted : Wednesday, February 10, 2016 6:55:53 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
ngapat wrote:
Based on long term outlook and prospects like

"Equity Group Kenya Targets 10 Million Congo Bank Customers"

I think Equity Bank will be the better buy.


Political risk in Congo is very high, just like South Sudan. I wouldn't jump into a share just because the Co has invested in Congo.

Anyhow I do hope that Equity will use a model that will be successful in that market.

Kenyan companies have burnt their fingers doing business in the region.
Life is short. Live passionately.
VituVingiSana
#22 Posted : Wednesday, February 10, 2016 10:08:16 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,055
Location: Nairobi
sparkly wrote:
ngapat wrote:
Based on long term outlook and prospects like

"Equity Group Kenya Targets 10 Million Congo Bank Customers"

I think Equity Bank will be the better buy.


Political risk in Congo is very high, just like South Sudan. I wouldn't jump into a share just because the Co has invested in Congo.

Anyhow I do hope that Equity will use a model that will be successful in that market.

Kenyan companies have burnt their fingers doing business in the region.

Equity's first acquisition was in UG. And it made a loss for 1-2 years as they cleaned up the dirty books. NPLs were very high.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kenyariri
#23 Posted : Wednesday, February 10, 2016 10:12:49 AM
Rank: New-farer


Joined: 11/23/2011
Posts: 15
The money transfer in the stable EA countries esp Kenya is good enough for Equity to ride high. In Kenya alone, Equity has the largest volumes of stock brockerage and money transfers among listed banks
Sophisticated investors ignore the noise and concentrate on the intrinsic value of an asset
citymayor
#24 Posted : Monday, May 16, 2016 12:01:01 AM
Rank: New-farer


Joined: 2/15/2012
Posts: 29
Location: unimportant
Foreigners quietly raise stakes in Equity Bank

Equity Group Holdings’ shareholding structure is undergoing a drastic transformation as foreign investors flock to the Nairobi Securities Exchange (NSE) to acquire a stake in the bank.

As things stand today, the lender—which this week announced a 20 per cent profit increase for the first quarter—is majority-owned by a foreign firm, while foreign investors take up five positions among the top 10 biggest shareholders...... in April, for instance, Equity’s stock attracted Sh250 million from foreign investors while there was an exit trend in the other banks.

One key ratio that informs the decision by a fund manager to invest in a listed firm is the income produced by its assets, or return on assets in technical terms. According to survey on 1,000 banks in the world conducted by international banking magazine, The Banker—owned by the Financial Times—Equity Bank is a top 10 performer on this ratio.

The magazine ranks the banking group at the eighth position in the world with its return on assets standing at 6.6 per cent. In Africa it is second only to South Africa’s Capitec Bank Holdings. The magazine also ranks Equity’s profitability at position 18 globally.
The Emotional Dog and Its Rational Tail
sparkly
#25 Posted : Monday, May 16, 2016 8:20:09 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
citymayor wrote:
Foreigners quietly raise stakes in Equity Bank

Equity Group Holdings’ shareholding structure is undergoing a drastic transformation as foreign investors flock to the Nairobi Securities Exchange (NSE) to acquire a stake in the bank.

As things stand today, the lender—which this week announced a 20 per cent profit increase for the first quarter—is majority-owned by a foreign firm, while foreign investors take up five positions among the top 10 biggest shareholders...... in April, for instance, Equity’s stock attracted Sh250 million from foreign investors while there was an exit trend in the other banks.

One key ratio that informs the decision by a fund manager to invest in a listed firm is the income produced by its assets, or return on assets in technical terms. According to survey on 1,000 banks in the world conducted by international banking magazine, The Banker—owned by the Financial Times—Equity Bank is a top 10 performer on this ratio.

The magazine ranks the banking group at the eighth position in the world with its return on assets standing at 6.6 per cent. In Africa it is second only to South Africa’s Capitec Bank Holdings. The magazine also ranks Equity’s profitability at position 18 globally.


I am currently accumulating Equity, for the reasons cited in the article. Now ~5% of my portfolio. If I wasn't buying Equity, second choice would be DTB.
Life is short. Live passionately.
Ebenyo
#26 Posted : Monday, May 16, 2016 11:07:26 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
Equity debt to equity ratio60% vs kcb at 36%.Oigara proving to be ahead of Mwangi
Towards the goal of financial freedom
kenyariri
#27 Posted : Monday, May 16, 2016 11:54:31 AM
Rank: New-farer


Joined: 11/23/2011
Posts: 15
Equitel will be a platform to watch and a competitor in money transfer.
Sophisticated investors ignore the noise and concentrate on the intrinsic value of an asset
VituVingiSana
#28 Posted : Monday, May 16, 2016 11:29:02 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,055
Location: Nairobi
Ebenyo wrote:
Equity debt to equity ratio60% vs kcb at 36%.Oigara proving to be ahead of Mwangi

How did you calculate that?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
watesh
#29 Posted : Tuesday, May 17, 2016 11:07:52 AM
Rank: Veteran


Joined: 8/10/2014
Posts: 954
Location: Kenya
Ebenyo wrote:
Equity debt to equity ratio60% vs kcb at 36%.Oigara proving to be ahead of Mwangi

Equity is choosing debt because they get it at 4% as compared to term deposits of 15%, then lent it all to govt at 23%...bigger interest margin for them, more interest income. Its the only logical way
stockshunter
#30 Posted : Sunday, May 22, 2016 12:20:00 PM
Rank: Member


Joined: 1/16/2014
Posts: 114
 Largest branch network in the region with presence in all East African Community Countries. The lender has a huge customer base of over 10 million.  Consistent profit growth over the last six years. Profit growth momentum expected to run into 2016.
 Increase in cost efficiency through greater use of mobile and agency banking. Cost to income ratio has been falling over past five years.
 KCB is trading at low price to earnings multiple relative to its historical valuation and to its peers.
 The shareholders approved KES 10 billion through a rights issue. The rights issue, expected in the second half of 2016 will slightly dilute shareholders who do not participate. (source SBG securities)
fear makes people live a miserable life.
target1360
#31 Posted : Monday, May 23, 2016 4:15:20 AM
Rank: Member


Joined: 5/14/2014
Posts: 288
Location: nairobi
watesh wrote:
Ebenyo wrote:
Equity debt to equity ratio60% vs kcb at 36%.Oigara proving to be ahead of Mwangi

Equity is choosing debt because they get it at 4% as compared to term deposits of 15%, then lent it all to govt at 23%...bigger interest margin for them, more interest income. Its the only logical way


i dont think that there is realy that much difference between debt and deposits to a bank
I find satisfaction in owning great business,not trading them
obiero
#32 Posted : Monday, May 23, 2016 7:04:26 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,475
Location: nairobi
target1360 wrote:
watesh wrote:
Ebenyo wrote:
Equity debt to equity ratio60% vs kcb at 36%.Oigara proving to be ahead of Mwangi

Equity is choosing debt because they get it at 4% as compared to term deposits of 15%, then lent it all to govt at 23%...bigger interest margin for them, more interest income. Its the only logical way


i dont think that there is realy that much difference between debt and deposits to a bank

Bulk of deposits for any major retail bank are not at the said example of 15%, but 0%

HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
Ericsson
#33 Posted : Monday, May 23, 2016 7:41:11 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
lochaz-index
#34 Posted : Monday, May 23, 2016 8:12:14 AM
Rank: Veteran


Joined: 9/18/2014
Posts: 1,127
Ericsson wrote:
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.

They had a slight dip of deposits in Q1 by 3b which is a divergence from the perceived flight to quality.

All in all some of the banks will be holding a begging bowl in a foul weather market mood.
The main purpose of the stock market is to make fools of as many people as possible.
watesh
#35 Posted : Monday, May 23, 2016 9:47:47 AM
Rank: Veteran


Joined: 8/10/2014
Posts: 954
Location: Kenya
Ericsson wrote:
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.

When you lose a whole 29bn in SS (from 43bn to 14bn) due to currency devaluation its bound to be felt in the numbers. Anyway i agree he should do more in the Kenyan and Tanzanian units when it comes to deposits. They are the slowest growers, esp Tz since their net interest margin is just 4-5% indicating expensive term deposits.
mlennyma
#36 Posted : Monday, May 23, 2016 12:05:03 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
watesh wrote:
Ericsson wrote:
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.

When you lose a whole 29bn in SS (from 43bn to 14bn) due to currency devaluation its bound to be felt in the numbers. Anyway i agree he should do more in the Kenyan and Tanzanian units when it comes to deposits. They are the slowest growers, esp Tz since their net interest margin is just 4-5% indicating expensive term deposits.

the way things are going kenyan companies will have hard time in Tz
"Don't let the fear of losing be greater than the excitement of winning."
watesh
#37 Posted : Monday, May 23, 2016 2:12:38 PM
Rank: Veteran


Joined: 8/10/2014
Posts: 954
Location: Kenya
mlennyma wrote:
watesh wrote:
Ericsson wrote:
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.

When you lose a whole 29bn in SS (from 43bn to 14bn) due to currency devaluation its bound to be felt in the numbers. Anyway i agree he should do more in the Kenyan and Tanzanian units when it comes to deposits. They are the slowest growers, esp Tz since their net interest margin is just 4-5% indicating expensive term deposits.

the way things are going kenyan companies will have hard time in Tz

DTB is kicking ass there though, last year they made a whole billion from the market and its still growing fast.
Othelo
#38 Posted : Monday, May 23, 2016 2:23:41 PM
Rank: User


Joined: 1/20/2014
Posts: 3,528
watesh wrote:
mlennyma wrote:
watesh wrote:
Ericsson wrote:
James Mwangi should just admit that Equity bank is having difficulties getting customer deposits and that's why they have resorted to borrowing.

When you lose a whole 29bn in SS (from 43bn to 14bn) due to currency devaluation its bound to be felt in the numbers. Anyway i agree he should do more in the Kenyan and Tanzanian units when it comes to deposits. They are the slowest growers, esp Tz since their net interest margin is just 4-5% indicating expensive term deposits.

the way things are going kenyan companies will have hard time in Tz

DTB is kicking ass there though, last year they made a whole billion from the market and its still growing fast.

Probably saved by the major shareholders's connections..... Just saying!!!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
citymayor
#39 Posted : Wednesday, May 25, 2016 10:57:42 AM
Rank: New-farer


Joined: 2/15/2012
Posts: 29
Location: unimportant
stockshunter wrote:
 Largest branch network in the region with presence in all East African Community Countries. The lender has a huge customer base of over 10 million.  Consistent profit growth over the last six years. Profit growth momentum expected to run into 2016.
 Increase in cost efficiency through greater use of mobile and agency banking. Cost to income ratio has been falling over past five years.
KCB is trading at low price to earnings multiple relative to its historical valuation and to its peers.
 The shareholders approved KES 10 billion through a rights issue. The rights issue, expected in the second half of 2016 will slightly dilute shareholders who do not participate. (source SBG securities)


Upcoming rights issue is likely to tank this GEM. Equity Bank earnings are steadily catching up and the PE will look more attractive. Equitel platform is also posting good numbers. The next bull might see Equity testing 70 levels easily
The Emotional Dog and Its Rational Tail
aemathenge
#40 Posted : Wednesday, May 25, 2016 11:42:21 AM
Rank: Elder


Joined: 10/18/2008
Posts: 3,434
Location: Kerugoya
citymayor wrote:
Equitel platform is also posting good numbers.


what are the risks associated with the warning attributed to the man from Opus?

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