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Equity Bank FY 2018 net profit up 5%
Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better Equity could need the funds to fund the new and growing businesses eg DRC. I prefer firms pay low dividends to Rights Issues. Barclays pays high dividends and has never done a rights issue. Same to Bamburi cement. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better Equity could need the funds to fund the new and growing businesses eg DRC. I prefer firms pay low dividends to Rights Issues. Barclays pays high dividends and has never done a rights issue. Same to Bamburi cement. How would you compare the growth of Barclays vs Equity since Equity listed? Bamburi is in a different industry and has a strong parent. BAT is another high dividend payer but different industry and strong parent. 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: 10,639 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better Equity could need the funds to fund the new and growing businesses eg DRC. I prefer firms pay low dividends to Rights Issues. Barclays pays high dividends and has never done a rights issue. Same to Bamburi cement. How would you compare the growth of Barclays vs Equity since Equity listed? Bamburi is in a different industry and has a strong parent. BAT is another high dividend payer but different industry and strong parent. NIC and DTB bank pay peanut dividends.Look at the number of rights issues they have done since listing Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better Equity could need the funds to fund the new and growing businesses eg DRC. I prefer firms pay low dividends to Rights Issues. Barclays pays high dividends and has never done a rights issue. Same to Bamburi cement. How would you compare the growth of Barclays vs Equity since Equity listed? Bamburi is in a different industry and has a strong parent. BAT is another high dividend payer but different industry and strong parent. NIC and DTB bank pay peanut dividends.Look at the number of rights issues they have done since listing DTB has grown a lot ex-Kenya and the expansion has to be funded. NIC seems to have stumbled. Both have reduced the "size" of their Rights Issues. I think the last one DTB did was 1:8 Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/13/2015 Posts: 1,568
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better Equity could need the funds to fund the new and growing businesses eg DRC. I prefer firms pay low dividends to Rights Issues. Barclays pays high dividends and has never done a rights issue. Same to Bamburi cement. How would you compare the growth of Barclays vs Equity since Equity listed? Bamburi is in a different industry and has a strong parent. BAT is another high dividend payer but different industry and strong parent. NIC and DTB bank pay peanut dividends.Look at the number of rights issues they have done since listing Yes they pay peanuts compared to the funds received from shareholders through rights.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better AGM 30 April 2019, KICC  Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Pesa Nane wrote:FUNKY wrote:since last few years they have maintained their dividend to 2/-...they need to raise to ignite a spark.. Regarding results it's a complete shocker they should have posted better AGM 30 April 2019, KICC Shareholders to contend with ksh.2 dividend Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Kenya’s leading bank in terms of market capitalisation and customer numbers Equity Group has announced that it has entered into an agreement with Pan-Africa focused banking group Atlas Mara to acquire the latter’s banking operations in four African countries. The transaction, which will be done through a share swap, will see Equity Bank acquire 62% of share of Banque Populaire du Rwanda Limited, 100% of African Banking Corporation (ABC ) in Zambia, Tanzania and Mozambique. Equity Bank said it expects to allot about 252.5 million new ordinary shares that represent about 6.27% of Equity’s issued shares equivalent to Sh 10.7 Billion. https://kenyanwallstreet...-in-4-african-countries/Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/6/2008 Posts: 199
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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[quote=Ericsson]Kenya’s leading bank in terms of market capitalisation and customer numbers Equity Group has announced that it has entered into an agreement with Pan-Africa focused banking group Atlas Mara to acquire the latter’s banking operations in four African countries. The transaction, which will be done through a share swap, will see Equity Bank acquire 62% of share of Banque Populaire du Rwanda Limited, 100% of African Banking Corporation (ABC ) in Zambia, Tanzania and Mozambique. Equity Bank said it expects to allot about 252.5 million new ordinary shares that represent about 6.27% of Equity’s issued shares equivalent to Sh 10.7 Billion. https://kenyanwallstreet...in-4-african-countries/[/quote] Great move towards achieving pan African dream. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 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: 11,901
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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: 1,996 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: 18,055 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: 10,639 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: 10,639 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: 18,055 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: 10,639 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: 18,055 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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