Foreigners quietly raise stakes in Equity BankEquity 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