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Equity Bank 2020
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Members loan book per various sources is 60% SME's...
With covid19 cases increasing on a daily basis despite limited testing...it's inevitable that Kenya will move from a curfew to a complete lockdown...
With a lockdown many of these SME's will not trade thus no cash flow...how will they service they're loans?
Well members has options...
1. Reclassify loans
2. Payment holidays
What else? What do you think? Is a prolonged locked down already priced in?
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Rank: Veteran Joined: 7/1/2014 Posts: 927 Location: sky
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equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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littledove wrote:equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid Not yet there is still one more drop. Q2 and HY for banks will be disastrous Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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Ericsson wrote:littledove wrote:equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid Not yet there is still one more drop. Q2 and HY for banks will be disastrous Can someone help me understand. what i understand is that banks will not have to classify loans that were performing pre COVID as non performing. Though in the long run, this will not help since the loans will probably be bad with some businesses even closing or severely down scaling i also understand that banks may not be lending to businesses at this time but could they be lending to GOK? Just like during the capping period, could the impact on banks not be that severe?
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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heri wrote:Ericsson wrote:littledove wrote:equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid Not yet there is still one more drop. Q2 and HY for banks will be disastrous Can someone help me understand. what i understand is that banks will not have to classify loans that were performing pre COVID as non performing. Though in the long run, this will not help since the loans will probably be bad with some businesses even closing or severely down scaling i also understand that banks may not be lending to businesses at this time but could they be lending to GOK? Just like during the capping period, could the impact on banks not be that severe? Interest income though will get a hit Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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Ericsson wrote:heri wrote:Ericsson wrote:littledove wrote:equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid Not yet there is still one more drop. Q2 and HY for banks will be disastrous Can someone help me understand. what i understand is that banks will not have to classify loans that were performing pre COVID as non performing. Though in the long run, this will not help since the loans will probably be bad with some businesses even closing or severely down scaling i also understand that banks may not be lending to businesses at this time but could they be lending to GOK? Just like during the capping period, could the impact on banks not be that severe? Interest income though will get a hit Very true ....if loans are not being paid, interest income cannot be earned. If loans are being denied interest income will not grow. In addition to that no bank to mpesa transaction income for a full quarter and less money circulating in the economy means the volumes have reduced which will impact some of the non funded income (card payments, salary processing fees, EFT/RTGS fees etc). The impact will definitely be there, the magnitude is hard to exactly pinpoint since ifrs 9 will be ignored for the time being.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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watesh wrote:Ericsson wrote:heri wrote:Ericsson wrote:littledove wrote:equity bank above 37 with supply drying, covid threat is slowly dying, we are likely to see kcb and equity above 40s, safaricom already at 28-29, the range before covid Not yet there is still one more drop. Q2 and HY for banks will be disastrous Can someone help me understand. what i understand is that banks will not have to classify loans that were performing pre COVID as non performing. Though in the long run, this will not help since the loans will probably be bad with some businesses even closing or severely down scaling i also understand that banks may not be lending to businesses at this time but could they be lending to GOK? Just like during the capping period, could the impact on banks not be that severe? Interest income though will get a hit Very true ....if loans are not being paid, interest income cannot be earned. If loans are being denied interest income will not grow. In addition to that no bank to mpesa transaction income for a full quarter and less money circulating in the economy means the volumes have reduced which will impact some of the non funded income (card payments, salary processing fees, EFT/RTGS fees etc). The impact will definitely be there, the magnitude is hard to exactly pinpoint since ifrs 9 will be ignored for the time being. USA and European banks and most of developed countries are starting to put money aside as a result of COVID-19 defaults Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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the deal wrote:Members loan book per various sources is 60% SME's...
With covid19 cases increasing on a daily basis despite limited testing...it's inevitable that Kenya will move from a curfew to a complete lockdown...
With a lockdown many of these SME's will not trade thus no cash flow...how will they service they're loans?
Well members has options...
1. Reclassify loans
2. Payment holidays
What else? What do you think? Is a prolonged locked down already priced in? Equity bank has restructured loans worth ksh.92bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://www.businessdail...63718-qsnb18/index.html
Equity Group has cancelled its proposed dividend payout of Sh2.50 per share or a total of Sh9.4 billion, citing the need to conserve cash in the wake of the global Covid-19 pandemic. “Accordingly, the board has passed a resolution withdrawing the proposed dividend recommendation and instead will be recommending to the shareholders that no dividend is paid for the financial year ended 31st December, 2019,” Equity said in a statement. “Therefore, the shareholders of the company and other investors are advised to exercise caution when dealing in the company’s ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange.” Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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Ericsson wrote:https://www.businessdailyafrica.com/news/Equity-halts-Sh9-billion-dividend-on-Corona-fears/539546-5563718-qsnb18/index.html
Equity Group has cancelled its proposed dividend payout of Sh2.50 per share or a total of Sh9.4 billion, citing the need to conserve cash in the wake of the global Covid-19 pandemic.
“Accordingly, the board has passed a resolution withdrawing the proposed dividend recommendation and instead will be recommending to the shareholders that no dividend is paid for the financial year ended 31st December, 2019,” Equity said in a statement. “Therefore, the shareholders of the company and other investors are advised to exercise caution when dealing in the company’s ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange.” This is fraud  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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