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Equity Bank HY 2015 net profit up 12%
Rank: Elder Joined: 9/15/2006 Posts: 3,905
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James Mwangi and his usual interesting narratives in the live feed. Finally...
40% growth in deposits
32% growth in liabilities
interest income up 14%
non funded income up 30%
profit before tax up 12%
profit before tax up 12% to 8.57bn
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Rank: Veteran Joined: 8/10/2014 Posts: 977 Location: Kenya
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The high growth in deposits then the extra 53bn loan they got from GES, loan book should start growing faster in all countries.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@watesh not really; High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,549 Location: nairobi
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Ericsson wrote:@watesh not really;
High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit 12.1B in profit is a sign of health in business for Equity
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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First half of 2015 has been quite good;second half looks rosy. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 977 Location: Kenya
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Ericsson wrote:@watesh not really;
High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit Over the past year lots of machinery has been imported planes, equipment for SGR etc while tourism numbers have gone down. As long as Alshabaab dont do anything extreme for a while tourists will get back. The dollar is really strong and it has affected all currencies causing them to weaken. 6% economic growth in Kenya,7% in Tanzania, 9% in DRC and 6% in Uganda is fairly great to me...With more funding available the supply of capital will be high and demand for capital is always high...I see more growth in Equity esp outside Kenya
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@watesh; widening budget and trade deficit;exports diminishing Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: User Joined: 1/20/2014 Posts: 3,528
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watesh wrote:Ericsson wrote:@watesh not really;
High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit Over the past year lots of machinery has been imported planes, equipment for SGR etc while tourism numbers have gone down. As long as Alshabaab dont do anything extreme for a while tourists will get back. The dollar is really strong and it has affected all currencies causing them to weaken. 6% economic growth in Kenya,7% in Tanzania, 9% in DRC and 6% in Uganda is fairly great to me...With more funding available the supply of capital will be high and demand for capital is always high...I see more growth in Equity esp outside Kenya Remember the effects of the economic slump + CBK actions will be felt from Q3 going forward plus KES not yet tamed despited the many actions. Equity's still experiences minimal bottomline contribution from the subsidiaries in other countries. DRC just setting up, Tz been a challenge - Kenya businesses dont seem to thrive there, SS in turmoil .....Ug and Rwanda i am not sure! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Veteran Joined: 8/10/2014 Posts: 977 Location: Kenya
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Othelo wrote:watesh wrote:Ericsson wrote:@watesh not really;
High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit Over the past year lots of machinery has been imported planes, equipment for SGR etc while tourism numbers have gone down. As long as Alshabaab dont do anything extreme for a while tourists will get back. The dollar is really strong and it has affected all currencies causing them to weaken. 6% economic growth in Kenya,7% in Tanzania, 9% in DRC and 6% in Uganda is fairly great to me...With more funding available the supply of capital will be high and demand for capital is always high...I see more growth in Equity esp outside Kenya Remember the effects of the economic slump + CBK actions will be felt from Q3 going forward plus KES not yet tamed despited the many actions. Equity's still experiences minimal bottomline contribution from the subsidiaries in other countries. DRC just setting up, Tz been a challenge - Kenya businesses dont seem to thrive there, SS in turmoil .....Ug and Rwanda i am not sure! H1 2015 Tanzania Customer deposits +52%, Loan book +113%, Asset +91%, PBT +159% while in Rwanda Customer Deposits +52%, Loan Book +72%, Assets +80% and PBT +499%....if this is not impressive, i dont know what is....Uganda has been the challenge due to loan provisions, they seem to be poor in paying debts, but customer deposits there were up 26% but PBT -8%...South Sudan Customer deposits +93% and loan growth is -18%, high loan provisions and defaults in this country because of oil money is going to the army, DRC with its main currency as US dollars and very tiny banking penetration will be interesting to watch...If Ethiopia opens up i see an acquisition taking place. Overall subsidiary PBT up +41% which to me is great considering they are spending in opening up branches and IT in the regions....Kenya is growing at 11% which is higher than KCB's 10%. If uv noticed Equity rarely market in media nowadays, its more of word of mouth. The recent one was maybe American Express which am sure AmEx are footing a big part of the bill to market it. Increased interest rates mean increased interest margins going forward. There may be defaults but am sure they are really experienced to handle this since it has happened before within the last 10 years
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Rank: Member Joined: 1/31/2007 Posts: 304
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watesh wrote:Othelo wrote:watesh wrote:Ericsson wrote:@watesh not really;
High interest rates,weak economic growth,weakening shilling,widening budget and trade deficit Over the past year lots of machinery has been imported planes, equipment for SGR etc while tourism numbers have gone down. As long as Alshabaab dont do anything extreme for a while tourists will get back. The dollar is really strong and it has affected all currencies causing them to weaken. 6% economic growth in Kenya,7% in Tanzania, 9% in DRC and 6% in Uganda is fairly great to me...With more funding available the supply of capital will be high and demand for capital is always high...I see more growth in Equity esp outside Kenya Remember the effects of the economic slump + CBK actions will be felt from Q3 going forward plus KES not yet tamed despited the many actions. Equity's still experiences minimal bottomline contribution from the subsidiaries in other countries. DRC just setting up, Tz been a challenge - Kenya businesses dont seem to thrive there, SS in turmoil .....Ug and Rwanda i am not sure! H1 2015 Tanzania Customer deposits +52%, Loan book +113%, Asset +91%, PBT +159% while in Rwanda Customer Deposits +52%, Loan Book +72%, Assets +80% and PBT +499%....if this is not impressive, i dont know what is....Uganda has been the challenge due to loan provisions, they seem to be poor in paying debts, but customer deposits there were up 26% but PBT -8%...South Sudan Customer deposits +93% and loan growth is -18%, high loan provisions and defaults in this country because of oil money is going to the army, DRC with its main currency as US dollars and very tiny banking penetration will be interesting to watch...If Ethiopia opens up i see an acquisition taking place. Overall subsidiary PBT up +41% which to me is great considering they are spending in opening up branches and IT in the regions....Kenya is growing at 11% which is higher than KCB's 10%. If uv noticed Equity rarely market in media nowadays, its more of word of mouth. The recent one was maybe American Express which am sure AmEx are footing a big part of the bill to market it. Increased interest rates mean increased interest margins going forward. There may be defaults but am sure they are really experienced to handle this since it has happened before within the last 10 years That's great news..this is definately a buy for the longterm
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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Equity = Equation = Equitel = money at the balance
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Kenyan operation contributed 92.4% of the group's profits compared to 90% for KCB. The neighbouring countries seems are a hard nut to crack for Kenyan firms. Will the regional subsidiaries ever contribute 40% of profits for Kenyan based firms? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:Kenyan operation contributed 92.4% of the group's profits compared to 90% for KCB.
The neighbouring countries seems are a hard nut to crack for Kenyan firms.
Will the regional subsidiaries ever contribute 40% of profits for Kenyan based firms? DRC will be cracked soon by mid 2017. Quite a bit of work on foundation going on... 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: 8/10/2014 Posts: 977 Location: Kenya
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Ericsson wrote:Kenyan operation contributed 92.4% of the group's profits compared to 90% for KCB.
The neighbouring countries seems are a hard nut to crack for Kenyan firms.
Will the regional subsidiaries ever contribute 40% of profits for Kenyan based firms? KCB started earlier in regional expansion in all regions. KCB south sudan profit is double what Equity south sudan is. Equity has caught up with KCB in Tanzania despite it being 2 years old vs KCB TZ over 7 yrs old. Kenyans economy and GDP per capita is double the number 2, which is Tanzania. So people in these subsidiaries have less money in their pockets since they earn less. This is then reflected in the businesses. Look at the biggest bank in Tanzania, full year profits are less than what KCB or Equity make in just a quarter....CRDB full year 2014 TZ shilling 95.6bn profit (Ksh4.5bn), 1ksh = Tsh20) 40% is possible but it will take time since Kenya isnt stagnant
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Dont confuse the old Equity Bank to the new one...this is now a mature bank...if it posts earnings growth of above +20% it becomes a suprise...years of such growth are gone...good thing about JM will always hustle...they wil try to cut that cost to income ratio but theyre now big...they can only grow at a certain rate without burning out.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@watesh; A target of between 20-25% for regional subsidiaries to me seems reasonable. Kenya is growing faster than the other regional countries. Look at the size of our companies;Safaricom Mkt cap is equal or more than Rwanda budget. Look at the real estate mkt in Kenya compared to the other countries Stock market Infrastructure development The number of shopping malls coming up;the number of bank branches Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Hellios Investments now completely out of equity Group after the last sale of its block of shares to NSSF Kenya http://www.businessdaily...92/-/85w0o8/-/index.htmlWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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[quote=Ericsson]Hellios Investments now completely out of equity Group after the last sale of its block of shares to NSSF Kenya http://www.businessdaily...2/-/85w0o8/-/index.html[/quote] So NSSF paid at least 47/- while 6+mn shares traded at 41 today. That's one reason why I don't want to pay NSSF anything but I would rather manage my own savings/pension. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: New-farer Joined: 8/6/2015 Posts: 26
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@VVS, I guess NSSF is long term investor.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Kahuna wrote:@VVS, I guess NSSF is long term investor. As Warren Buffett says... pay a fair price but do not over-pay. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Equity Bank HY 2015 net profit up 12%
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