Wazua
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Equity Bank Results FY2010
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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invest0r wrote:
Any idea on when dtb will be announcing?
between now and wednesday... Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 11/30/2006 Posts: 635
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not impressive on the dividend front. market appears negative
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Rank: Member Joined: 3/17/2009 Posts: 201
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You cannot compare Equity with KCB reason their asset bases are quite different forexample Equity is able to make profits of 9 billion out of assets of 143 billion whereas KCB is able to make 9 billion out of assets of 256 billion. the basic calculations of EPS do not give a true and fair picture of the company. I WILL ALWAYS GO WITH BUFFET SAYING you dont need computers to calculate and know how good an investment is a good company sells itself just walk to equity and see the number of customers and compare this with the KCB and you will know where to invest your shilling.
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Rank: Member Joined: 7/7/2008 Posts: 124
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No it will never hit the roof because BBK today is a bob down!And as I always maintain,this is not a normal market!
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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guru267 wrote:mapengo wrote:dividend is double what was announced in 2009. they have increased their profits two fold 71% increase while their asset base increase by only 30% from 100B to 143B this is a new definition of efficiency. The dividend is CRAP!!! I dont see how the share price can go up under these conditions... @vvs can tell you a thing or two about dividend payment. Guess which two companies don't pay dividends. Microsoft and Berkshire Hathaway Intereseting reads: Should Microsoft and Berkshire Hathaway pay dividends?Reasons for retaining earnings - Warren BuffetAnd by the way, if a company make tonnes of money and pays you a very small dividend or nothing at all you can always resort to homemade dividend. Click here for a definition.Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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gmg wrote:You cannot compare Equity with KCB reason their asset bases are quite different forexample Equity is able to make profits of 9 billion out of assets of 143 billion whereas KCB is able to make 9 billion out of assets of 256 billion. the basic calculations of EPS do not give a true and fair picture of the company. @gmg thank you for this because now you know that if KCB lowers there cost to income ratio and other inefficiencies then they would be able to make 16BILLION PROFIT BEFORE TAX as soon as 2012 Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 5/8/2008 Posts: 77
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As a long-ish term investor (2 - 3 years), i would also put my money on KCB. It still has more room for growth, driven on two fronts: Inherent business growth, and cost cutting measures. And, it seems to have laid the ground work to make gains on both fronts. Most of its peers have growth prospects limited primarily to inherent business growth.
But, you need patience. Waiting for it to 'explode' is like watching a snail run the NBO marathon..
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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MaichBlack wrote:
@vvs can tell you a thing or two about dividend payment.
Guess which two companies don't pay dividends. Microsoft and Berkshire Hathaway
@maichblack the two companies you have mentioned always give bonus issues... There is no excuse for returning CRAP to shareholders.. Giving a 1:1 bonus would have cost equity less than the crap 80cents they have just given Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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guru267 wrote:gmg wrote:You cannot compare Equity with KCB reason their asset bases are quite different forexample Equity is able to make profits of 9 billion out of assets of 143 billion whereas KCB is able to make 9 billion out of assets of 256 billion. the basic calculations of EPS do not give a true and fair picture of the company. @gmg thank you for this because now you know that if KCB lowers there cost to income ratio and other inefficiencies then they would be able to make 16BILLION PROFIT BEFORE TAX as soon as 2012 I think what you mean to say is that KCB would be making 16B if it's ROA was as good as EQBs... but its not... what analysis makes that a good deal?  "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Genghis Khan wrote:guru267 wrote:gmg wrote:You cannot compare Equity with KCB reason their asset bases are quite different forexample Equity is able to make profits of 9 billion out of assets of 143 billion whereas KCB is able to make 9 billion out of assets of 256 billion. the basic calculations of EPS do not give a true and fair picture of the company. @gmg thank you for this because now you know that if KCB lowers there cost to income ratio and other inefficiencies then they would be able to make 16BILLION PROFIT BEFORE TAX as soon as 2012 I think what you mean to say is that KCB would be making 16B if it's ROA was as good as EQBs. EXACTLY... One of their 3 year plans is to get their ROA, cost to income to the industry average. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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guru267 wrote:MaichBlack wrote:
@vvs can tell you a thing or two about dividend payment.
Guess which two companies don't pay dividends. Microsoft and Berkshire Hathaway
@maichblack the two companies you have mentioned always give bonus issues... There is no excuse for returning CRAP to shareholders.. Giving a 1:1 bonus would have cost equity less than the crap 80cents they have just given @guru - Have you gone through the links I have posted? You really should. There are companies that should pay dividends [Those with nothing better to do with the money] and those that shouldn't [Companies with a lot of growth potential]. Equity falls in the latter category. Equity has dreams of becoming a Pan African bank. They could actually retain ALL the earnings, reinvest and have better returns [on the retained earnings] than the market. I'm sure they pay because Wanjiku would be up in arms if they didn't. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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youcan'tstopusnow wrote:Cde Monomotapa wrote:youcan'tstopusnow wrote:Just what happened in the 4th quarter for banks to accelerate their performances? vipi comrade..I concur with u. Mkopo wa Xmas??  Niko sawa. Inaonekana ni mkopo wa Christmas. Uliona KCB? At current prices, nitaongeza, regardless of what others say. Equity seems fair priced. Wacha DTB waannounce then I balance my portfolio Glad u r good..what do u mean niliona KCB?I dreamt abt it even!hahaha!i am very pleasd with KCB the dividend blew my mind; the house is more than safe. I see u man i also intend to accumilate KCB regardlss of what paparrazi say.soon after i'm clear with Kengen. Hii mwaka ni yetu boss.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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MaichBlack wrote:
@guru - Have you gone through the links I have posted? You really should.
There are companies that should pay dividends [Those with nothing better to do with the money] and those that shouldn't [Companies with a lot of growth potential]. Equity falls in the latter category. Equity has dreams of becoming a Pan African bank. They could actually retain ALL the earnings, reinvest and have better returns [on the retained earnings] than the market. I'm sure they pay because Wanjiku would be up in arms if they didn't.
@Maichblack you should know that it costs a company like equity only 180million to give a 1:10 bonus whereas it costs them 2.9 billion to pay 80cents dividend... But believe me shareholders would be much happier with a 1:10 bonus with a zero dividend rather than a 80 cents crap dividend Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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Kaffir wrote:As a long-ish term investor (2 - 3 years), i would also put my money on KCB. It still has more room for growth, driven on two fronts: Inherent business growth, and cost cutting measures. And, it seems to have laid the ground work to make gains on both fronts. Most of its peers have growth prospects limited primarily to inherent business growth.
But, you need patience. Waiting for it to 'explode' is like watching a snail run the NBO marathon.. I agree totally... but betting against James Mwangi has been painful for me in the past... i'm considering doubling my stake in EQB if the market doesn't rally as it should. Check the select summary stats i got from Genghis Capital (no relation)... i bet on Mwangi not considering retirement anytime soon. EPS 2010 1.93 2009 1.14 Growth 69% DPS 2010 0.80 2009 0.40 Growth 100% INTEREST INCOME (Kshs B) 2010 13.80 2009 9.94 Growth 28% NON-INT INCOME (Kshs B) 2010 10.44 2009 6.51 Growth 60% ADVANCES (Kshs B) 2010 78.30 2009 63.38 Growth 24% PBT (Kshs B) 2010 9.00 2009 5.25 Growth 71% "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Veteran Joined: 7/22/2008 Posts: 1,139
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gmg wrote:You cannot compare Equity with KCB reason their asset bases are quite different forexample Equity is able to make profits of 9 billion out of assets of 143 billion whereas KCB is able to make 9 billion out of assets of 256 billion. the basic calculations of EPS do not give a true and fair picture of the company. I WILL ALWAYS GO WITH BUFFET SAYING you dont need computers to calculate and know how good an investment is a good company sells itself just walk to equity and see the number of customers and compare this with the KCB and you will know where to invest your shilling. I agree with you and not because I hold quite a chunk of Equity but because this is a share majority have failed to predict wisely. Equity is a share that have defied the odds and gone against the grain. Though fundamentals still hold the water when weighing investment solutions,you do not need to critic until you cant board a bus. This is a share to watch.Interms of efficiency,its better that KCB "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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People ought to listen to @guru. He is selling u money 4 free. If i might add..KCBs cost/income ratio had been compromisd by expansion costs.they r now consolidating. When othrs r eyeing EAC (expect increase in their costs), KCB is already there. Please note that KCB still attracts new biz hence growth in its BS unlike BBK so when u combine more business to aggressive cost management..KCB is GOLD!! Its statutory ratios are so HEALTHY can't u see the massive headroom for growth esp.thru S&L?!!? "in the abundance of water the fool is thirsty"
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Rank: Member Joined: 3/17/2009 Posts: 201
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to counter the argument that cost cutting will do much i believe there should be a culture change in KCB, more than cost cutting and culture change will take more than 3 years. Equity is a bank of the future look at their 4 billion scholarship programme at the end of it they will get more customers out of the 5600 direct beneficiaries, thier immediate families, schools from where they come from.
AM betting on innovation to drive growth in the banking sector in future and Equity is the market leader in innovation. For KCB to give investors 16 B profit the CEO need fresh thinking. Equity will be the leading bank by 2012 in terms of profitability.
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Rank: Veteran Joined: 7/22/2008 Posts: 1,139
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Cde Monomotapa wrote:People ought to listen to @guru. He is selling u money 4 free. If i might add..KCBs cost/income ratio had been compromisd by expansion costs.they r now consolidating. When othrs r eyeing EAC (expect increase in their costs), KCB is already there. Please note that KCB still attracts new biz hence growth in its BS unlike BBK so when u combine more business to aggressive cost management..KCB is GOLD!! Its statutory ratios are so HEALTHY can't u see the massive headroom for growth esp.thru S&L?!!? "in the abundance of water the fool is thirsty" While you are at it,I wud like to remind you that Equity and KCB made 9billion profit (both). If u compare %age of profit to total assets,you will realise the inefficiency of KCB ie 3.5% compared to 6.5% of Equity. I recommend Equity over KCB "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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Genghis Khan wrote:Kaffir wrote:As a long-ish term investor (2 - 3 years), i would also put my money on KCB. It still has more room for growth, driven on two fronts: Inherent business growth, and cost cutting measures. And, it seems to have laid the ground work to make gains on both fronts. Most of its peers have growth prospects limited primarily to inherent business growth.
But, you need patience. Waiting for it to 'explode' is like watching a snail run the NBO marathon.. I agree totally... but betting against James Mwangi has been painful for me in the past... i'm considering doubling my stake in EQB if the market doesn't rally as it should. Check the select summary stats i got from Genghis Capital (no relation)... i bet on Mwangi not considering retirement anytime soon. EPS 2010 1.93 2009 1.14 Growth 69% DPS 2010 0.80 2009 0.40 Growth 100% INTEREST INCOME (Kshs B) 2010 13.80 2009 9.94 Growth 28% NON-INT INCOME (Kshs B) 2010 10.44 2009 6.51 Growth 60% ADVANCES (Kshs B) 2010 78.30 2009 63.38 Growth 24% PBT (Kshs B) 2010 9.00 2009 5.25 Growth 71% its interesting to note(maybe not so important)that interest income is growing faster than loans and advances to customers despite generally lower lending rates... a better / cleaner loan book? "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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(A)- KCB profit after tax was up 76% to KShs. 7.2 Bn.
- Equity profit after tax was up 68% to KSh.7 Billion and customer deposits up 50% to KSh.104 Bn.
(B) - KCB net interest income grew by 36% to stand at KShs. 19.6 Bn (21% increase in the bank’s loan book [KShs.148 Bn] and reduced cost of funds)
- Equity interest income grew by 28% to KSh.13.8 Bn (81% increase in interest income from Government Securities and 20% surge in interest income from loans and advances)
(C) KCB Earnings per Share (diluted & basic ) - Kshs.2.76 whilst Equity's stands at KSh.1.93.
(D) KCB asset base KShs.251B whilst Equity is KSh.143 Bn.
When looking at a growth firm, I'm more interested in capital growth as compared to dividends...looking at the assets and performance above, Equity is doing a lot more with less for it to even be comparable to KCB.
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