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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: 903 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: 10,684 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: 834 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: 10,684 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: 969 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: 10,684 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: 10,684 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: 10,684 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: 11,908
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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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Rank: Member Joined: 11/21/2018 Posts: 564 Location: Britain
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Angelica _ann wrote: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 Totally unprecedented since it listed on NSE. Let us now wait and see the effect of this announcement on the share price going forward. By 2022, the share price shall be quite interesting. Cash is king.
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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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.” WOW! They could have at least given out a bonus issue
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Rank: Member Joined: 3/16/2019 Posts: 313
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watesh wrote: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.” WOW! They could have at least given out a bonus issue Ditto
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 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: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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Some good news will be announced before long to counter the bad news.....and just like that, 40 will print again. By the way, member always announces something good a day or two after dividend book closure. KCB has also perfected this game. @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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littledove wrote:Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 That was a fund buying. They will seize this golden opportunity to load up some more. @SufficientlyP
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Rank: Elder Joined: 6/23/2009 Posts: 13,515 Location: nairobi
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Sufficiently Philanga....thropic wrote:littledove wrote:Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 That was a fund buying. They will seize this golden opportunity to load up some more. Nothing like a golden opportunity. Failure to pay a dividend isn't a positive sign
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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obiero wrote:Sufficiently Philanga....thropic wrote:littledove wrote:Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 That was a fund buying. They will seize this golden opportunity to load up some more. Nothing like a golden opportunity. Failure to pay a dividend isn't a positive sign Et tu Obiero? Surely, how is preserving cash in order to survive hard, uncertain, times a negative sign? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 6/23/2009 Posts: 13,515 Location: nairobi
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Wakanyugi wrote:obiero wrote:Sufficiently Philanga....thropic wrote:littledove wrote:Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 That was a fund buying. They will seize this golden opportunity to load up some more. Nothing like a golden opportunity. Failure to pay a dividend isn't a positive sign Et tu Obiero? Surely, how is preserving cash in order to survive hard, uncertain, times a negative sign? Shows lack of depth in reserves. How come its peers are paying?
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: 12/7/2012 Posts: 11,908
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obiero wrote:Wakanyugi wrote:obiero wrote:Sufficiently Philanga....thropic wrote:littledove wrote:Angelica _ann wrote: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 possibly true, somebody want in at a low price, the heavy local demand for the last one month which pushed price to 42 shows somebody desperately purchasing below 40 That was a fund buying. They will seize this golden opportunity to load up some more. Nothing like a golden opportunity. Failure to pay a dividend isn't a positive sign Et tu Obiero? Surely, how is preserving cash in order to survive hard, uncertain, times a negative sign? Shows lack of depth in reserves. How come its peers are paying? They should have paid reduced dividend amount, not nothing/nil - kwanza after initially declaring a good juicy amount of Kshs. 2.5 bob. 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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