Wazua
»
Investor
»
Stocks
»
Equity Bank HY 2011 results
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
... and Equity Bank keeps going Quote:The bank is set to invest Sh1 billion and Sh1.5 billion to set up operations in Rwanda and Tanzania respectively, with plans to open 15 branches in the two markets by the end of September.
|
|
|
Rank: Member Joined: 4/17/2009 Posts: 194
|
the deal wrote:Equity Bank became the first Kenyan Bank to announce its 1H 2011 earnings; So what does that make my Housing Finance who announce last week. A piggy bank  ?
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,261 Location: Nairobi
|
Iborian wrote:the deal wrote:Equity Bank became the first Kenyan Bank to announce its 1H 2011 earnings; So what does that make my Housing Finance who announce last week. A piggy bank ? Is HFCK a 'bank'? [Forgive my ignorance on its license] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
|
VituVingiSana wrote:Iborian wrote:the deal wrote:Equity Bank became the first Kenyan Bank to announce its 1H 2011 earnings; So what does that make my Housing Finance who announce last week. A piggy bank ? Is HFCK a 'bank'? [Forgive my ignorance on its license] HFCK is not a bank....its a mortgage lender.Even CBK classifies it differently. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
|
|
|
Rank: Elder Joined: 9/15/2006 Posts: 3,906
|
kenyainvestor wrote:selah wrote:will this company dislodge safaricom as the most profitable company...I kind of believe it now..its possible. selah, Safaricom had a Profit Before Tax of Kshs. 18.36 Billion. Equity will need at least 2 years to upstage them... Safaricom HY 2010 net income was 7.63b with a 16.2% net income margin. Safaricom second half of last year, 27% down, net income was 5.53b with a 11.6% net income margin Aaah my brazen forecast:Safaricom income for first-half HY2011 will struggle to match HY2010. Inflation has also almost doubled. In the rare circumstance it does, Safaricom will have made 5.53b after tax. Equity came in strong with first-half 4.7b after tax. The margin is nary 800m yet the elephant is ailing. James Mwangi's EQTY-H2 will likely outperform Bob Collymore's SCOM-H1; and a new king of the hill reign soon afterwards.
|
|
|
Rank: Member Joined: 7/12/2011 Posts: 194
|
muganda wrote:kenyainvestor wrote:selah wrote:will this company dislodge safaricom as the most profitable company...I kind of believe it now..its possible. selah, Safaricom had a Profit Before Tax of Kshs. 18.36 Billion. Equity will need at least 2 years to upstage them... Safaricom HY 2010 net income was 7.63b with a 16.2% net income margin. Safaricom second half of last year, 27% down, net income was 5.53b with a 11.6% net income margin Aaah my brazen forecast:Safaricom income for first-half HY2011 will struggle to match HY2010. Inflation has also almost doubled. In the rare circumstance it does, Safaricom will have made 5.53b after tax. Equity came in strong with first-half 4.7b after tax. The margin is nary 800m yet the elephant is ailing. James Mwangi's EQTY-H2 will likely outperform Bob Collymore's SCOM-H1; and a new king of the hill reign soon afterwards. And so the transition begins... I had earlier written a post on how KCB will turn out in 2 years IF they managed to bring their cost to income ratio below 50% LINK: KENYA COMMERCIAL BANK: 2 YEARS DOWN THE LINE
|
|
|
Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
|
muganda wrote:kenyainvestor wrote:selah wrote:will this company dislodge safaricom as the most profitable company...I kind of believe it now..its possible. selah, Safaricom had a Profit Before Tax of Kshs. 18.36 Billion. Equity will need at least 2 years to upstage them... Safaricom HY 2010 net income was 7.63b with a 16.2% net income margin. Safaricom second half of last year, 27% down, net income was 5.53b with a 11.6% net income margin Aaah my brazen forecast:Safaricom income for first-half HY2011 will struggle to match HY2010. Inflation has also almost doubled. In the rare circumstance it does, Safaricom will have made 5.53b after tax. Equity came in strong with first-half 4.7b after tax. The margin is nary 800m yet the elephant is ailing. James Mwangi's EQTY-H2 will likely outperform Bob Collymore's SCOM-H1; and a new king of the hill reign soon afterwards. I totally agree with you Equity will be the next King in a few months time. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
|
|
|
Rank: Member Joined: 12/31/2008 Posts: 90
|
Which may then be overtaken by the lion once the lion wakes up from his slumber but that may not be until 2013. 2012 FY results will reflect this position is my take.
|
|
|
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
|
selah wrote:kenyainvestor wrote:selah, Safaricom had a Profit Before Tax of Kshs. 18.36 Billion. Equity will need at least 2 years to upstage them...
And, if you so much admire the bank, why don't you have it in your portfolio? Just wondering... The reason I dont have it in my portfolio is because Its risk exposure compared to my current investments is too high(its target market is too risky in my opinion)I was observing this segment during the PEV aftermath and although Equity survived its peers in the segment wrote off a lot of bad debts and registered losses that made me wary of any bank that primarily targets this market. My observation does not mainly look at election violence but also any considerable shock in the SME can really affect the performance of Equity. My thought is that Financials will take the least beating when compared to Industrial / Services / Agricultural. The impact to a financial is through the customer. The rest suffer directly when property is damaged, logistics are impaired or market vanishes. What do you hold? "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
|
|
|
Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
|
Jamani wrote: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.... Equity is growing by expanding market (going regional and selling established products / services) AND by developing new products... Far as I know, Safaricom can only come up with new products to sell to the existing market... very tough 2yrs is feasible... 3yrs max! If one operator closes shop (most likely not airtel, maybe YU), Safcom market share goes from say 70% to 72.5%... so what? "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
|
|
|
Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
|
@genghis I hold COOP which I think has a diversified portfolio of products and its base is a lilbit secure given that its a cooperative movement, the next bank that I want to own is KCB am waiting for the right price to jump in. looking at equity bank its non performing loans and insider lending are too high in my opinion If it has more than 4 billion non performing loans in a normal operating yr tell me how that would be if there was a substantial shock on the SME(its niche)as we are currently witnessing this yr. But as they say the risky the business the higher the returns I will definitely own some once the price become attractive next yr. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
|
|
|
Rank: Member Joined: 7/12/2011 Posts: 194
|
@selah, there is not that much of a discrepancy in insider lending in comparison to peers so as to cause alarm. Insider lending as a proportion of total lending using 1st Quarter 2011 Results: Standard Chartered Bank of Kenya - 3.6%The Co-operative Bank - 4.8%Kenya Commercial Bank - 5.9%Equity Bank - 6.8%Barclays Bank of Kenya - 8.1%NOTE: Bank of Kigali - 2%
|
|
|
Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
|
Serous volumes at Equity, just above 2million shares traded at noon! Foreigners have been picking up this stock, jus wondering whether it has to do with the agency banking thing, which CEO Mwangi says now processes 20% of the transactions! @SufficientlyP
|
|
|
Rank: Elder Joined: 2/11/2007 Posts: 1,680 Location: nairobi
|
at 24 for the last 24 hours...damn
|
|
|
Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
|
KCB's PAT growth of 41.57% in H1 though great compared to its performance in previous years a far cry to Equity's 57.37%. Equity still the bank to beat! @SufficientlyP
|
|
|
Rank: Veteran Joined: 4/30/2010 Posts: 1,635
|
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
FUNKY wrote:http://www.theeastafrican.co.ke/business/Equity+looks+to+corporates++SMEs+for+growth/-/2560/1210782/-/iu1nr0z/-/index.html 
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
Equity Bank needs to change tactic...interest income needs to start contributing more to total operating income, with non interest income contributing 47% of total operating income I don't think that segment can grow further, depending on how fast the regional subsdiaries grow, Equity Bank will struggle to replicate the 50+% growth we have seen in the past 5 years cos the Kenyan operations have reached some form of maturity.
|
|
|
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
|
Agency Banking approved in Rwanda. Mambo bado! GOD BLESS YOUR LIFE
|
|
|
Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
|
FUNKY wrote:http://www.theeastafrican.co.ke/business/Equity+looks+to+corporates++SMEs+for+growth/-/2560/1210782/-/iu1nr0z/-/index.html I dont think the analogy below is correct. Quote:However, Equity has seen a significant in on the interest it pays for customer deposits and other deposits. Interest expense — the charges Equity has to incur on customer deposits — went up by 46 per cent between the first quarter and the second quarter of the year.
In the three months to March 2011, Equity’s interest expense stood at $4.7 million. But between April to June the interest expense stood at $6.6 million.
Many analysts say that this is because a rising interest rate regime has forced the bank to pay more for its deposits as clients weigh the option of investing in government securities at better rates as opposed to deposit rates offered by banks —though, this might not be the case because Equity’s deposits come from individuals and clients current and savings accounts. Why would a writer quote analysts and then say this might no be the case. I think the reason Equity is paying more in interest expenses is because of the subsidized loans it receives from development banks and the Govt to lend to SMEs.For instance, youthfund and women fund loans which I think Equity is supposed to pay btwn 7 & 10% interest on the money,Now if few women/youth groups qualify for the loans equity is forced to pay interest on money that has not been lent hence the high interest expense. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
|
|
|
Wazua
»
Investor
»
Stocks
»
Equity Bank HY 2011 results
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|