• Equity Bank Limited
  • XUGA:EBL KAMPALA/Uganda
  • 1327.00 UGX
  • 0.00 0.00%
  • As of 2017/05/26
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  • About the Company
  • Equity Bank has grown to be the largest bank in Africa by customer base. Licenced and cross-listed in Kenya. Has subsidiaries in Kenya, Uganda, South Sudan, Rwanda, and Tanzania.
  • Equity Group Holdings Limited, formerly Equity Bank Limited, is a Kenya-based commercial bank.

    The Company provides financial services to individuals and small and medium sized enterprises. The Company operates in six geographical markets: Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo.

    Its three customer facing lines of businesses include consumer, small and medium enterprises (SME’s) and corporate. The consumer business line focuses on salaried customers or customers receiving other regular remittances, such as pension. The facilities granted under its SME’s line of business are for purposes of meeting working capital needs, property development or acquisition of assets. The corporate line of business comprises large enterprises. The Company offers a range of products, including Equity loan, Vijana loan, Fanikisha loan, Farm input, Mortgage loan, Asset finance loan, Trade finance, Development loan, Business Loan and Biashara Imara.

    Website

    Address
    Hospital Hill Road,
    Upper Hill,
    P.O.Box 75104
    Nairobi, 00200
    Kenya
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After a low of $149m in net revenues in 2013, net revenues have grown 7.7% this year slower than last year when they grew at 10%. With this growth they have not recovered to their 5-year peak of £170m
Revenue per year in US $ The higher, the better.
Profits have increased for the last 3 years $47.3m but have not recovered to peak of $51.8m in 2012
Profits per year in US $ The higher, the better.
Profit margins have remained below 30% despite increase in profits indicating a struggle to keep control of costs.
Profit Margin compared to competitors The higher, the better.
Stanbic has maintained return on assets above 3% which is double the global average but is still below the local average.
Management of Assets compared to competitors The higher, the better.
Costs as a percentage of revenue is at 62.82% significantly lower than its peak of 69.85% in 2013. This cost percentage is a lot better than the local average but worse than African average.
Management of Costs compared to competitors The lower, the better.
Cash generation by Stanbic has halved since 2012 but better than 2013 when cash generation was negative due to increased losses in government securities.
Cash Generation compared to competitors The higher, the better.
Assets are currently 90% financed by banks, this may seem high but is similar for both local and African banks. This dependence on debt has reduced slightly over the last few years
Level of Debt compared to competitors The lower, the better.
Stanbic Bank can comfortably cover its immediate debts similar to all local banks. The margin between the liquid assets and current liabilities for Stanbic is lower than other local banks but this has been driven by a drastic increase in customer deposits.
Ability to pay debt compared to competitors The higher, the better.
The available cash (working capital) has increased by 70% over the last 5 years from $112m to $191m. This shows that Stanbic has become more efficient and healthier. This enables that Stanbic to invest more money within the business.
Liquidity/Cash Availability compared to competitors The higher, the better.
Revenues have grown slower than other local banks but the growth in profits has been faster than its local peers. In 2013, Stanbic experienced a 12% drop in profits and 33% drop in revenues, similar to other local banks - this drop in earnings was due to slowdown following the 2011 Ugandan election.
Revenue Growth compared to competitors The higher, the better.
Profit Growth compared to competitors The higher, the better.
Stanbic continues to have pay out the highest level of dividends in Uganda and Africa. Currently Stanbic pays out 3% of its share price but this is half of what it paid out the previous year. This is different from other local banks where dividends have gone back.
Despite Stanbic having high levels of dividend, this drop in dividend yield raises concern about how long this will be sustained.
Return on Equity compared to competitors The higher, the better.
Dividend Yield compared to competitors The higher, the better.
Stanbic Uganda has increased the investment in the business since 2011, and is doing it at the highsest levels both locally and in Africa.
Level of Investment per year in US $ The higher, the better.
Investment Ratio compared to competitors The higher, the better.

Online payment platform PayPal now accounts for close to 70 per cent of Equity Bank diaspora banking revenue.

Equity Bank data for the first quarter of 2017 shows that the number of PayPal users increased by 47 per cent. This is as a result of increased transaction volumes enhanced by the upgrade of the PayPal system. The system is now able to process customers’ withdrawal transactions within three business days from the previous eight days.

“Equity Bank is concentrating on global money transfer as an alternative income stream. The success of the Bank’s innovation with the PayPal platform has shown significant growth depicting the power of fintech on fully automated processes,” Equity Bank Group CEO James Mwangi (pictured)said.

The service allows Equity Bank customers with a PayPal account to receive payments in 25 currencies.

The Capital Markets Authority (CMA) has expressed concern over the overwhelming dominance of five of the country’s top firms at the bourse.

The regulator in a new report released yesterday said five companies accounted for two-thirds of the total market capitalisation at the Nairobi Securities Exchange (NSE) in the three months to March, exposing the stock market to concentration risk.

The combined market capitalisation of the stocks of Safaricom, East African Breweries, Kenya Commercial Bank (KCB), Equity Bank and British American Tobacco (BAT), the Capital Markets Soundness Report showed, accounted for about 64 per cent of the market capitalisation.

“The top five companies accounted for between 63.7 per cent and 65 per cent of the market capitalisation, which is a heavy level of concentration on a few counters and exposes the market to concentration risks,” said CMA Chief Executive Paul Muthaura during the the report’s launch in Nairobi.

There are 67 companies listed at the NSE. The Capital Markets Soundness Report is a publication on capital markets stability indicators and industry risks.

The Equity Bank Family after scooping 19 Awards out of the 24 possible entries it had submitted for the Think Business Banking Awards2017 held at Radisson Blu Hotel. 

The Bank was crowned the top overall bank in Kenya. Largest lender by deposit accounts, Equity Holdings, emerged the overall winner during the annual banking awards, orgnaised by Think Business, last week.

The top-tier lender scooped 19 awards out of 24 entries it had submitted.

Equity shrugged off strong competition to beat other lenders by ranking first in 13 categories.

It won in mortgage finance, agency banking,retail banking, product innovation, trade financing and the best bank with the lowest charges to individuals.

Other areas it emerged tops were best lender in sustainable corporate social responsibility, micro finance and agribusiness and livestock finance, among others. Group MD James Mwangi was also named the CEO of the year.

“I am humbled by this recognition which further validates our strategy and pursuit of financial inclusion while giving our customers freedom, choice and control,” Mwangi said in a statement yesterday. “We aim to retain this victory in the future and translate this success into a deeper emotional connection with our customers by giving them freedom, choice and control. 

Kenya’s top 10 banks registered a 10.8 per cent growth in net earnings to Sh93.81 billion for the financial year ended December 31, 2016.

The growth was despite four of the lenders – Equity Bank, Barclays Bank of Kenya (BBK), Stanbic Bank and NIC Bank – registering a drop in profits after tax.

Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank remained the top three most profitable lenders respectively and also the only ones with double-digit-billions profits.

However, for the first time in over 10 years, Equity recorded a drop (5.9 per cent) in profits. Despite KCB Group recording a 0.5 per cent growth in profits, the slowest pace in seven years, KCB Bank saw its after-tax profit soar by 19.9 per cent to Sh19.78 billion.

At the same time, Co-operative Bank registered a 24.6 per cent growth in profit to Sh13.05 billion.

Equity 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.

Some 15 million shares worth 2.9 million dollars were traded at the Nairobi Securities Exchange (NSE) Monday, down from 19 million valued at 4.7 million dollars the previous trading day as foreign investors slowed down trading.

Safaricom was the most traded stock moving 11.3 million shares at unchanged price of 0.18 U.S. dollars. The stock attracted the most foreign purchases and sales, but other top buys were Equity Bank, East African Breweries Ltd and the Cooperative Bank.

Oil marketer KenolKobil was the second most active stock as it exchanged 1.3 million shares at 0.12 dollars, a decline of 0.3 percent. The stock, however, was mainly traded by local investors.

Equity Bank, Uchumi Supermarket and Barclays Bank were the other top five traded stocks but they did not trade more than a million shares.

The NSE 20 Share Index went down for the third consecutive trading session to 3,106.21 Monday after peaking at 3,128.44 on March 29 while the All Share Index closed higher at 131.50 from 130.61.

In Kenya, the banking environment was characterised by heightened uncertainty following three commercial banks being put under statutory management, effects of interest capping regulation at no more than 400 basis points above CBR for loans and not less than 70 per cent of CBR on interest earning deposits, credit to private sector contraction, bear run on the Stock markets and skewed liquidity amongst banks.

The macro- economic environment was also characterised by foreign exchange rate instability, rising inflation, devastating drought resulting in famine, food inflation and negative impact on water supply, hydro energy and security.

On the regional front, the environment was characterised by uncertainties due to the electioneering in Tanzania and Uganda, the transitions in South Sudan and DRC. In addition, the pending 2017 elections in Kenya and Rwanda played a role in slowing economic activities as investors’ exercised caution in their investment decisions.

The year also witnessed a slump in global commodities prices leading to a slowdown in regional trades and economic growth. The impact of the slow down effect of the China economy which has affected global commodity prices and political events in The US and UK are also being felt.

Speaking while releasing the end of year results, the Group Managing Director and CEO Dr. James Mwangi said “The Group is well positioned to weather shocks from the environment as reflected in the Group’s liquid and well capitalised balance sheet. The Group closed the year with liquidity levels of over 48 per cent and total capital adequacy ratio of over 19 per cent. Our value proposition to shareholders is solid and our strategy continues to pay off with an Earning Per Share (EPS) of KES 4.38. As a result of this, the Board has proposed a dividend payment totalling KES 7.547 billion.”

Finally another Rwanda commercial bank- I&M Bank, today listed its shares at Rwanda stock exchange with an opening price of Frw 100 and closed with an increase at a closing price of Frw 105.

I&M Bank indicated its intension to join the local bourse in 2016. The bank will become the third on the stock counters joining another Rwandan bank- The Bank of Kigali, and two Kenyan banks- Kenya Commercial Bank and Equity Bank.

In the meantime both Rwanda stock index and all shares remained constant to close at 145.98 and 130.50 respectively.

Only a few equities changed hands on the stock market while the bonds market was quiet

IMR counter closed at Frw 105(Frw 0.00 previous). The trading session recorded a total turnover of Frw 12,129,000 from 121,800 shares traded in 4 deals.

BLR counter closed at Frw 140(Frw 139 previous). The trading session recorded a total turnover of Frw 14,000 from 100 shares traded in 1 deal.CTL counter closed at Frw 90(Frw 90 previous). The trading session recorded a total turnover of Frw 9,000 from 100 shares traded in 1 deal.

Equity Group Holdings Limited, formerly Equity Bank Limited, is a Kenya-based commercial bank.

The Company provides financial services to individuals and small and medium sized enterprises. The Company operates in six geographical markets: Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo.

Its three customer facing lines of businesses include consumer, small and medium enterprises (SME’s) and corporate. The consumer business line focuses on salaried customers or customers receiving other regular remittances, such as pension. The facilities granted under its SME’s line of business are for purposes of meeting working capital needs, property development or acquisition of assets. The corporate line of business comprises large enterprises. The Company offers a range of products, including Equity loan, Vijana loan, Fanikisha loan, Farm input, Mortgage loan, Asset finance loan, Trade finance, Development loan, Business Loan and Biashara Imara.

Website

Address
Hospital Hill Road,
Upper Hill,
P.O.Box 75104
Nairobi, 00200
Kenya

Uchumi Supermarket, Embu branch. (Photo Courtesy) Listed retailer Uchumi Supermarkets is quite literally a cat with nine lives. It has ducked darts, danced through barbs and almost closed shop four times but now lives to fight another tough round.

But for now shareholders of the troubled retail chain will have to hold onto the rails for longer as the management redrafts its strategy to make yet another attempt to turn around Kenya’s oldest retailer.

After surviving a monumental court battle to close it down last year, the company is back to the drawing board hoping to start off on the turnaround journey it had set out. “The winding up suit petition is behind us now after we reached an amicable settlement with suppliers. It was an extraordinary moment that demonstrated the high confidence suppliers and Kenyans have in the Uchumi brand,” the retailer’s Chief Exchange Officer Julius Kipng’etich said.

Uchumi has now come to terms with new developments that require a complete rethink of its strategy beyond the drop by drop lifesaving survival due to goodwill that has kept it afloat. When he joined Uchumi, the former Equity Bank Group’s Chief Operating Officer exuded confidence with vast experience that saw him succeed at Kenya Wildlife Service. Dr Kipng’etich saw Uchumi as a straightforward case he could easily turn around as a master of strategy.

But when he came on board he found Uchumi’s books with a gaping hole, a black hole in essence that was collapsing on itself. When an audit reassessed Uchumi’s books, the listed retailer owed suppliers Sh3.6 billion and banks Sh2.5 billion. This pushed it into a negative cash flow position.

The amount was up from Sh1 billion supplier debt estimated when former CEO Jonathan Ciano was bundled out of office. Undaunted by the task, Kipng’etich still saw hope, leveraging his banking network, his charming frankness and a strong resolve even as the retailer struggled to hold on.

He set up a team and drew a strategy that would have seen Uchumi’s shelves stocked and suppliers paid by now. But as fate would have it, his turnaround plan was not only tested but was put on trial literally. Suppliers who had lost confidence in Uchumi sought to liquidate its assets and have Kenya’s oldest retailer auctioned.