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5 Pages«<2345>
Equity Bank 2020
Ericsson
#61 Posted : Wednesday, October 21, 2020 11:21:37 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
https://www.standardmedi...sh800m-tax-on-gains-row

Equity takes on KRA in sh.800mn tax on gains row.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#62 Posted : Saturday, October 31, 2020 10:50:14 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#63 Posted : Thursday, November 12, 2020 9:43:01 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Angelica _ann
#64 Posted : Thursday, November 12, 2020 10:59:13 AM
Rank: Elder


Joined: 12/7/2012
Posts: 11,723
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Queen
#65 Posted : Thursday, November 12, 2020 1:09:19 PM
Rank: Member


Joined: 11/21/2018
Posts: 427
Location: Britain
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
VituVingiSana
#66 Posted : Thursday, November 12, 2020 7:47:54 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Queen
#67 Posted : Friday, November 13, 2020 9:27:04 AM
Rank: Member


Joined: 11/21/2018
Posts: 427
Location: Britain
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


Thought when they were cancelling the payout, they clearly indicated that they did so to cushion themselves (conserve cash) against the effects of Covid on their bottomline.
Spending the dividend cash to buy the DRC Branch, if indeed that is the case, must have been either an afterthought or poor planning on their part since they had already declared the dividend.

Let us just say the so called 7.8B declared profit came from the 9B accrued from the cancelled dividend. If the dividend had been paid out, in reality, there would have been a Q3 loss to the tune of 1.2B. For me this is simple and clear.


See the link below which explained how the dividend cash was to be expended:-

https://www.businessdail...563718-qsnb18/index.html
Ericsson
#68 Posted : Friday, November 13, 2020 9:50:15 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#69 Posted : Friday, November 13, 2020 9:55:21 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
Queen wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
[quote=Ericsson]To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


Thought when they were cancelling the payout, they clearly indicated that they did so to cushion themselves (conserve cash) against the effects of Covid on their bottomline.
Spending the dividend cash to buy the DRC Branch, if indeed that is the case, must have been either an afterthought or poor planning on their part since they had already declared the dividend.

Let us just say the so called 7.8B declared profit came from the 9B accrued from the cancelled dividend. If the dividend had been paid out, in reality, there would have been a Q3 loss to the tune of 1.2B. For me this is simple and clear.


See the link below which explained how the dividend cash was to be expended:-

https://www.businessdail...63718-qsnb18/index.html[/quote]

The bank is his,shareholders can go hang themselves.Anchor shareholders like Norwegian investment fund are looking at capital gains which they can then cash out in future.
Let's now see if the investment in DRC was a wise one.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Queen
#70 Posted : Friday, November 13, 2020 10:01:36 AM
Rank: Member


Joined: 11/21/2018
Posts: 427
Location: Britain
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


I think @VVS misunderstood the article on the 66% share purchase of the DRC bank by Equity. The article talks of Equity Bank purchasing the 625,354 shares CUM-DIVIDEND. It does not say they spend the money meant for dividend payout to buy the shares.

https://www.the-star.co....e-in-drc-bank-at-sh10bn/
kmucheke
#71 Posted : Monday, November 16, 2020 10:28:03 AM
Rank: Member


Joined: 3/16/2019
Posts: 227
[Value of Equity digital deals overtakes branch banking
Quote:
Data by the lender shows that the value of transactions on its digital platforms such as Equitel and EazzyBiz grew by 25 percent or Sh396 billion to Sh1.988 trillion to dwarf in-branch dealings recorded between March and September.

In contrast, the value of transactions on legacy channels, which include branch and automated teller machines (ATMs), dipped by 14 percent or Sh279 billion to Sh1.73 trillion.

“The silver lining for us was to use Covid-19 as the tailwind to push more customers to digital banking. Many may never go back to ‘brick and mortar’ banking,” said Mr Mwangi.

“Big transactions are now moving out of banking halls to digital transactions. We gave businesses corporate cash and liquidity management solutions and it is working.”

He explained that the EazzyBiz channel that mostly targets businesses now has about 20,000 customers with daily transactions averaging Sh3 billion.

Equity disclosures also show that 98 percent of transactions now happen outside the branch.
watesh
#72 Posted : Monday, November 16, 2020 12:32:08 PM
Rank: Member


Joined: 8/10/2014
Posts: 854
Location: Kenya
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.
Ericsson
#73 Posted : Monday, November 16, 2020 12:44:47 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Queen
#74 Posted : Monday, November 16, 2020 2:48:53 PM
Rank: Member


Joined: 11/21/2018
Posts: 427
Location: Britain
Ericsson wrote:
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank


As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
VituVingiSana
#75 Posted : Monday, November 16, 2020 5:27:46 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Queen wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank


As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
86% of what? Please provide numbers/specifics.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#76 Posted : Monday, November 16, 2020 5:58:33 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
VituVingiSana wrote:
Queen wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank


As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
86% of what? Please provide numbers/specifics.

86% of gross loans and advances
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#77 Posted : Monday, November 16, 2020 6:36:56 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank


As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
86% of what? Please provide numbers/specifics.

86% of gross loans and advances
Please provide numbers/specifics from the 3Q 2020 results. I can't find the "86% of gross loans and advances as NPLs" but I would appreciate more info.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#78 Posted : Monday, November 16, 2020 7:20:46 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,143
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
VituVingiSana wrote:
Queen wrote:
Angelica _ann wrote:
Ericsson wrote:
Ericsson wrote:
To get a good effect of COVID-19 on the financials
Q1--7bn
Q2--4.9bn

Q3--7.8bn

Nine months profit 19.7bn
Total Assets ksh.933bn


Great performance under the circumstances, 1T here we come.


How much did the cancelled dividend pay-out contribute to the Q3 performance? Nothing to celebrate here. Who is fooling who?
The 10bn or so was used to buy the bank in DRC. That's a capital investment vs a P&L item.

Of course, there is a benefit to Equity Bank i.e. it doesn't need to borrow (Tier 2) to fund the purchase.


What about the borrowings at Ksh,68bn?


One of James Mwangi's biggest complains is long term funding. He said most of their deposits are short term 1-2 years yet they have loans spanning over 10 years. To bridge the gap they have to borrow money to fund these long term loans.



Equity bank doesn't do mortgages.
What is the average tenure for a loan in Equity bank


As you ponder about the average loan tenure, for me the main give-away(am struggling to avoid the phrase- RED FLAG) is that the non-performing loans are now at 86%. Reason to get worried.
86% of what? Please provide numbers/specifics.

86% of gross loans and advances
Please provide numbers/specifics from the 3Q 2020 results. I can't find the "86% of gross loans and advances as NPLs" but I would appreciate more info.


Some information is never put in the P&L statement.
This is probably an insider information.
Let's wait and see
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
FUNKY
#79 Posted : Thursday, November 19, 2020 10:36:19 PM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,628
VituVingiSana
#80 Posted : Thursday, November 19, 2020 10:49:32 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
FUNKY wrote:
https://www.newtimes.co.rw/news/kenyas-banking-tycoon-mwangi-build-kigali-financial-towers

Odd. Equity has steered away from owning real estate. I hope this isn't some sort of pressure from GoRw.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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