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Equity Bank FY 2016 results
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Angelica _ann wrote:mlennyma wrote:Ericsson wrote:Equity Bank Earnings Fall for First Time in a Decade, Bad Loans Up 100%
The Group’s Non Performing Loans (NPLs) doubled from the previous year’s Ksh 9.0 Billion to Ksh 18 Billion while NPLs from its Kenyan Business more than doubled to Ksh 15 Billion from 2015’s Ksh 6.8 Billion. Kenyans are in shit and unable to repay loans...uhuruto tena When you say, you are told the sky is not falling.  Bado  Pessimist wewe... possunt quia posse videntur
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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(1)In just 3 months,Equity Bank's income statement was shredded by two things: Banking Amendment Act (the law) and asset non-perfomance.. (2)Q4 EPS was down 70%q/q.Took a Kshs.2.6bn haircut on income from loans due to the law.NPL ratio surged to 7%;and so was Q4 impairments (3) Due to its risk-on lending and funding approach,Equity will be the worst hit by the law due to its and will struggle to adjust. (4)I expect the bank's 2017 asset strategy to be dominated by piling up of Government securities.. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Ericsson wrote:(1)In just 3 months,Equity Bank's income statement was shredded by two things: Banking Amendment Act (the law) and asset non-perfomance..
(2)Q4 EPS was down 70%q/q.Took a Kshs.2.6bn haircut on income from loans due to the law.NPL ratio surged to 7%;and so was Q4 impairments
(3) Due to its risk-on lending and funding approach,Equity will be the worst hit by the law due to its and will struggle to adjust.
(4)I expect the bank's 2017 asset strategy to be dominated by piling up of Government securities..
I will make sure by release of Q1 I will have rough work money to buy between 15-20 "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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kshs 7.5 billion in dividends.How does that translates into dividend per share? Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Ebenyo wrote:kshs 7.5 billion in dividends.How does that translates into dividend per share? sh.2 per share Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 976 Location: Kenya
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That crazy NPL provision Equity made protects in FY2017 earnings. If there is a drop in earnings thanks to interest rate capping, it wont seem huge since they suppressed their 2016 profits with the mega NPL provisions.
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Rank: Elder Joined: 6/23/2009 Posts: 13,541 Location: nairobi
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watesh wrote:That crazy NPL provision Equity made protects in FY2017 earnings. If there is a drop in earnings thanks to interest rate capping, it wont seem huge since they suppressed their 2016 profits with the mega NPL provisions. Insane logic if that was the case
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: 8/16/2011 Posts: 2,297
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I am just chipping in, what did Aka Mr Equity say about Equitel? Has Equitel brought forth any tangible fruits or just buds? How will Equitel compete with Safaricom. My interest in Equity was equitel to see if I could increase shareholding.
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Rank: Veteran Joined: 8/10/2014 Posts: 976 Location: Kenya
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Breakdown of quarterly interest income from Equity Bank Kenyan subsidiary
2016
Q1 - 10.73
Q2 - 11.34
Q3 - 11.51
Q4 - 9.49
As compared to 2015
Q1 - 8.26
Q2 - 8.65
Q3 - 9.27
Q4 - 11.09
Observations:
Just like KCB the Q4 interest income much lower than Q1 in the year 2016. I predict a flat growth or slight drop in Q1 2017 interest income.
If the interest rate cap sticks, Q2 and Q3 will relatively have flat growth since the drop in interest income should be equal to its usual average growth so it cancels out the effect. Q4 2017 will experience higher growth than the other quarters since Q4 2016 has already been affected by interest rate cap.
All this is with the assumption that economic conditions remain ceteris paribus.
Profit growth will be determined by NPLs in 2017 plus a little bit by lower taxes thanks to infrastructure bond interest income which is tax exempt. Equity wrote off a bunch of NPLs in 2016 which they state were one off costs, they are focusing more on quality rather than volumes, i expect lower NPLs in 2017.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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watesh wrote:Breakdown of quarterly interest income from Equity Bank Kenyan subsidiary
2016
Q1 - 10.73
Q2 - 11.34
Q3 - 11.51
Q4 - 9.49
As compared to 2015
Q1 - 8.26
Q2 - 8.65
Q3 - 9.27
Q4 - 11.09
Observations:
Just like KCB the Q4 interest income much lower than Q1 in the year 2016. I predict a flat growth or slight drop in Q1 2017 interest income.
If the interest rate cap sticks, Q2 and Q3 will relatively have flat growth since the drop in interest income should be equal to its usual average growth so it cancels out the effect. Q4 2017 will experience higher growth than the other quarters since Q4 2016 has already been affected by interest rate cap.
All this is with the assumption that economic conditions remain ceteris paribus.
Profit growth will be determined by NPLs in 2017 plus a little bit by lower taxes thanks to infrastructure bond interest income which is tax exempt. Equity wrote off a bunch of NPLs in 2016 which they state were one off costs, they are focusing more on quality rather than volumes, i expect lower NPLs in 2017. What do you suppose will happen to Equity's or the whole sector's NPLs once the cap law is done away with assuming similar macro conditions? The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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obiero wrote:watesh wrote:That crazy NPL provision Equity made protects in FY2017 earnings. If there is a drop in earnings thanks to interest rate capping, it wont seem huge since they suppressed their 2016 profits with the mega NPL provisions. Insane logic if that was the case I think it is straight forward. It's called normalizing earnings or tempering expectations for the short-term or spreading the earnings shaving over several years instead of one. That said, shock and awe still awaits for all quarters of 2017 and the subsequent FY results. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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James Mwangi stated that the decline in profits is due to poor performance in S Sudan and Congo. The investment in DRC Congo is turning out to be a poor decision Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Equity Bank prepares for Munga exit as it appoints new directors https://www.standardmedi...t-appoints-new-directorsWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Quote:Kindly note the change in Payment & Books Closure Date for Equity Group Holdings as follows;
Books Closure Date 05-May-2017
Payment Date 23-June-2017 Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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Communications Authority accuses Equity Bank of inflating Equitel numbersEquity Bank is on the spot for inflating the number of customers on its mobile money service Equitel. Data from the latest industry report by Communications Authority of Kenya (CA) shows the bank inflated the number of subscribers by 34.5 per cent. “Finserve Africa Limited registered a total of 1.4 million mobile subscriptions, down from 2.2 million subscriptions posted in the previous quarter, translating to a decline of 34.5 per cent,” says CA in the report covering the second quarter of the 2006-17 financial year. During the firm’s investor briefing where it released its full-year results last month, the lender reported that Equitel had grown subscriber numbers by 40 per cent during the 2015-16 financial year. “The uptake of Equitel in the period under review increased from 1.6 million customers to 2.7 million while the downloads of the Eazzy banking app rolled out late last year was at 130,266 downloads as at December 31, 2016,” said the bank in its financial report. In the recent filings to CA, however, Equitel has been forced to restate the number of customers on its network, a move that has seen the firm’s market share also revised downward. https://www.standardmedi...flating-equitel-numbers
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,118 Location: Nairobi
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Ericsson wrote:Communications Authority accuses Equity Bank of inflating Equitel numbersEquity Bank is on the spot for inflating the number of customers on its mobile money service Equitel. Data from the latest industry report by Communications Authority of Kenya (CA) shows the bank inflated the number of subscribers by 34.5 per cent. “Finserve Africa Limited registered a total of 1.4 million mobile subscriptions, down from 2.2 million subscriptions posted in the previous quarter, translating to a decline of 34.5 per cent,” says CA in the report covering the second quarter of the 2006-17 financial year. During the firm’s investor briefing where it released its full-year results last month, the lender reported that Equitel had grown subscriber numbers by 40 per cent during the 2015-16 financial year. “The uptake of Equitel in the period under review increased from 1.6 million customers to 2.7 million while the downloads of the Eazzy banking app rolled out late last year was at 130,266 downloads as at December 31, 2016,” said the bank in its financial report. In the recent filings to CA, however, Equitel has been forced to restate the number of customers on its network, a move that has seen the firm’s market share also revised downward. https://www.standardmedi...flating-equitel-numbers
The "inflated" subscriber numbers do not surprise me since Equity "forces/coerces/compels" all its customers to "register" on Equitel but eventually many accounts end up being dormant. The good news is that the "real/active"user base is growing. In addition, the transaction volume [number and amount] keeps on increasing. It's a work in progress but real/active numbers would be a better indicator. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Ericsson wrote:Communications Authority accuses Equity Bank of inflating Equitel numbersEquity Bank is on the spot for inflating the number of customers on its mobile money service Equitel. Data from the latest industry report by Communications Authority of Kenya (CA) shows the bank inflated the number of subscribers by 34.5 per cent. “Finserve Africa Limited registered a total of 1.4 million mobile subscriptions, down from 2.2 million subscriptions posted in the previous quarter, translating to a decline of 34.5 per cent,” says CA in the report covering the second quarter of the 2006-17 financial year. During the firm’s investor briefing where it released its full-year results last month, the lender reported that Equitel had grown subscriber numbers by 40 per cent during the 2015-16 financial year. “The uptake of Equitel in the period under review increased from 1.6 million customers to 2.7 million while the downloads of the Eazzy banking app rolled out late last year was at 130,266 downloads as at December 31, 2016,” said the bank in its financial report. In the recent filings to CA, however, Equitel has been forced to restate the number of customers on its network, a move that has seen the firm’s market share also revised downward. https://www.standardmedi...flating-equitel-numbers
Fake news by Standard. I have not seen any evidence of "accusation" and being "forced" to restate numbers. Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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@Sparkly Read the CAK report on Quarterly statistics-Q2 2016/2017 of the mobile phone numbers. CAK gave out the true numbers of each of the telcos and mobile money subscribers Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Ericsson wrote:@Sparkly
Read the CAK report on Quarterly statistics-Q2 2016/2017 of the mobile phone numbers.
CAK gave out the true numbers of each of the telcos and mobile money subscribers Is that an accusation? Life is short. Live passionately.
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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talk about inefficient mr market!
EQTY PE-8 vs KCB 5.4
EQTY NAV 19.22 vs KCB 31.5
EQTY EPS 4.38 vs KCB 6.46
EQTY PRICE 34 vs KCB 34
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Equity Bank FY 2016 results
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