Equity Bank Group

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Equity Bank Group
Type Public Company
Traded as KN: EQTY
USE: EBL
Industry Banking and Finance
Predecessors Equity Building Society (EBS)
Headquarters 9th Floor, Equity Centre
Hospital Road, Upper Hill
Nairobi, Kenya
Key people Peter Munga
Group Chairman
James Mwangi
Group Managing Director & CEO
Products Loans, Mortgages Investments, Debit cards, Credit Cards
Revenue Increase Aftertax:US$155 million (KES:13.2 billion) (2013)
Total assets US$3.45+ billion (KES:295 billion) (Q1:2014)
Employees 6,000+ (2014)
Website www.equitybankgroup.com

Equity Bank Group (EBG), officially referred to as Equity Group Holdings Limited, is a financial services organisation in East Africa. The Group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda and Tanzania.

Overview[edit]

Equity Bank Group is a large financial services conglomerate, with an asset base estimated at over US$3.83 billion (KES:339.44 billion), and shareholders' equity in excess of US$644.6 million (KES:57.1 billion), as of 30 September 2014.[1] EBG has a customer base in excess of 9.2 million in the five East Arican countries that it serves, making it the largest commercial bank on the African continent, by customer numbers.[2]

In June 2008, the bank was voted by Euromoney Awards for Excellence, as the best bank in Kenya in June 2008. Equity Bank emerged the overall best bank in Kenya at the Renaissance Capital Bank Awards in August 2008 and was cited locally as the only stock that returned positive shareholder value during the year 2008 at the Nairobi Stock Exchange. The bank was named as the "Best Performing Company in Africa" during the annual African Investor Index Awards, held on 21 September 2009, in New York.[3] Equity Bank Group has exclusive rights to issue AmEx credit cards across the African continent outside South Africa.[4]

History[edit]

Equity Bank was founded in Kenya, the largest economy in East Africa, as Equity Building Society (EBS), in October 1984. EBS was originally a provider of mortgage financing for customers in the low income population. Large numbers of Africans have historically been excluded from formal sources of capital, such as banks, building societies and other regulated financial institutions. They knew little about these resources, which makes financial literacy and education strategically important to Equity Bank's growth. Also due to its rural banking orientation, promotion of agribusiness is a significant and strategic intervention by the bank.

Having been declared technically insolvent in 1993, Equity Bank Group later returned to profitability in the following years. By 2011, Equity Bank had more than 7.15 million customers; nearly half of bank accounts in Kenya. The company's vision is “to be the champion of the socio-economic prosperity of the people of Africa”.

Equity Bank has been severally voted the "best bank in retail banking" due to, among other factors, the customer dedication and talented management team. In addition to enjoying widespread recognition domestically, the company has attracted a lot of global accolades and awards, as other developing countries in Africa and Asia seek to learn from Equity's low margin, high-volume model.

The Banker listed Equity Bank among the Top 1,000 Banks in the World with the highest return on assets in the African continent, generating a rate of 6.84 per cent on assets employed.[5]

Prior to November 2014, Equity Bank was both a licensed bank and a holding company for its subsidiaries. On October 31, 2014, Equity Bank Group announced its intention to incorporate a new wholly owned subsidiary, Equity Bank (Kenya) Limited, to which it would transfer its Kenyan banking business, assets and liabilities. The rationale for the re-organisation is that by converting Equity Bank into a non-trading holding company that owns both banking and non-banking subsidiary companies and provides strategic, brand, risk and talent management to its subsidiaries, the Group will be better placed to invest and to develop the existing and new businesses as part of its third phase of growth and transformation.[6] These resolutions were all adopted during an extra-ordinary shareholders general meeting held on November 24, 2014 leading to the formation of Equity Bank Kenya Limited.[7]

Ownership[edit]

The stock of Equity Bank Group is traded on the Nairobi Securities Exchange, under the symbol: EQTY. On Thursday 18 June 2009, the Group's stock cross listed on the Uganda Securities Exchange and started trading that day, under the symbol: EBL.[8] As of December 2012, shareholding in the group's stock was as depicted in the table below:[9]

Equity Bank Group Stock Ownership
Rank Name of Owner Percentage Ownership
1 Helios Investment Partners of the United Kingdom 24.45
2 British-American Investments Company 10.63
3 Equity Bank Employees’ Share Ownership Plan 4.07
4 James Njuguna Mwangi 3.45
5 Fortress Highlands Limited 2.73
6 Andrew Mwangi 2.44
7 Nelson Muguku 1.76
8 Others 50.47
Total 100.00
  • By Virtue of his shareholding and units in British American Investments Company Limited and Employee Share Ownership Plan (ESOP) respectively, Group CEO James Mwangi's total direct and indirect shareholding is 4.88%.

Board of directors[edit]

Mr.Peter K. Munga, CBS, Chairman
Dr. James Mwangi, CBS Managing Director & CEO
Mr. Benson Wairegi, EBS, Non-Executive Vice-Chairman
Mr. Temitope Lawani, non-executive director
Mr. Julius Kipng'etich, Chief Operations Officer
Mr. Fredrick Muchoki, HSC, non-executive director
Mr. Ernest Nzovu, non-executive director
Mr. Babatunde Soyoye, non-executive director
Prof. Shem Migot-Adholla, non-executive director, Non-Executive chairman Equity Bank South Sudan
Dr. Helen Gichohi, OGW, MBS, non-executive director
Mr. David R. Ansell, non-executive director, Non-Executive chairman Equity Bank Uganda, Rwanda, Tanzania
Mr. Alykhan Nathoo, non-executive director
Mr. Dennis Aluanga, non-executive director
Mr. John Staley, non-executive director Equity Bank Uganda, Rwanda, Tanzania
Mrs. Elizabeth Lwanga, non-executive director Equity Bank Uganda
Prof. George Alibaruho, non-executive director Equity Bank Uganda
Mrs. Mary Wamae, Company Secretary.[10]

Member companies[edit]

The companies that compose the Equity Bank Group include but are not limited to the following:

  1. Equity Bank Kenya LimitedNairobi, Kenya Kenya – 100% Shareholding – A commercial bankin Kenya, serving individuals and businesses.
  2. Equity Bank Rwanda LimitedKigali, Rwanda Rwanda[11][12] – 100% Shareholding – A commercial bank in Rwanda, serving both individuals and businesses.
  3. Equity Bank South Sudan LimitedJuba, South Sudan South Sudan – 100% Shareholding – A commercial bank in South Sudan.
  4. Equity Bank Tanzania LimitedDar es Salaam, Tanzania Tanzania[13] – 100% Shareholding – A commercial bank in Tanzania.
  5. Equity Bank Uganda LimitedKampala, Uganda Uganda – 100% Shareholding – A commercial bank in Uganda.
  6. Equity Consulting Group Limited – Nairobi, Kenya Kenya
  7. Equity Insurance Agency Limited – Nairobi, Kenya Kenya – 100% Shareholding – The insurance agency arm of the group. Offering bancassurance services to customers
  8. Equity Nominees Limited – Nairobi, Kenya Kenya – 100% Shareholding – A Nominee company. Holding investments on behalf of customers.[9]
  9. Equity Investment Bank Limited – Nairobi, Kenya Kenya[14] – 100% Shareholding – An investment bank in Kenya. A member of the Nairobi Securities Exchange and licensed by the Capital Markets Authority.
  10. Finserve Africa LimitedNairobi, Kenya Kenya – 100% Shareholding – A mobile virtual network operator(MVNO) in the Kenya.
  11. Equity Group Foundation – Nairobi, Kenya Kenya – 100% Shareholding – The philanthropy and corporate social responsibility arm of the group.

Corporate social responsibility[edit]

In 2010, Equity Group Foundation (EGF) crystallised as a fully fledged institution with its own structures and systems. It attracted professionals from both local and international markets who have brought knowledge, expertise and the experience needed to implement programs along the thematic areas identified for focus. This innovation and creative vehicle has fundamentally transformed the concept of philanthropy and corporate social responsibility to a level previously unknown.

While Equity Group Foundation champions the socio-economic transformation of the people of Africa and seeks partnerships along six cluster thematic areas, Equity Bank provides the infrastructure of delivery hence reducing the operational costs for the Foundation and increasing the rate of return on any social investment. The six Thematic Pillars are: 1. Education and Leadership Development 2. Financial Literacy 3. Agriculture 4. Health 5. Environment & Sustainability 6. Innovation

Accolades and recognition[edit]

September 2011: Equity Bank Group was listed as one of the 16 global emerging Markets New Sustainability Champions by a World Economic Forum Report in 2011. Equity Bank Group was recognised as the only financial service provider in the Emerging Markets which meets the threshold of sustainability based on criteria covering innovation, growth and corporate sustainability.
September 2011: Africa Investor named Equity CEO Dr. James Mwangi as the African Banker of the year for the second year in a row.
September 2011: Africa Investor named Equity Bank as the Best Initiative in Support of SMEs and the Millennium Development Goals
2010: Africa investor named Equity Bank as the Ai 40 company of the year.
2010: The Financial Times named Equity CEO Dr. James Mwangi among the 50 emerging market business leaders in BRIC countries – Brazil, Russia, India and China – and other emerging market economies, who have shaped the economic performance of their respective regions. The Financial Times recognised Dr. Mwangi for transforming the lives of many people in Kenya including house helps and low income earners who have been able to borrow as little as KES 500 from the Bank.
June 2009: Equity Bank was named the Emerging Markets Most Sustainable Bank of the Year in Africa and the Middle East.
2007:Equity Bank is the holder of the 2007 Global Vision Award in Microfinance "for initiating a concept of the future that will shape the Global Economy".

See also[edit]

References[edit]

  1. ^ EBG, . (October 2014). "Equity Bank Group Financial Statement As At 30th September 2014". Equity Bank Group (EBG). Retrieved 23 November 2014. 
  2. ^ Flood, Zoe (3 July 2014). "Kenya's Mobile Innovation Brings Digital Money Closer". BBC News. Retrieved 23 November 2014. 
  3. ^ Juuko, Sylvia (28 September 2009). "Equity Scoops Best Company Awards". New Vision (Kampala). Retrieved 23 November 2014. 
  4. ^ Okuttah, Mark (15 October 2014). "Equity Bank To Issue AmEx Cards Across Africa". Business Daily Africa (Nairobi). Retrieved 23 November 2014. 
  5. ^ Business Daily Reporter, . (22 July 2014). "Super Profits Earn Equity, KCB Top Global Rankings". Business Daily Africa (Nairobi). Retrieved 23 November 2014. 
  6. ^ EBG, . (31 October 2014). "Circular To Shareholders for The Transfer of The Kenyan Banking Business To A Newly Created, Wholly Owned Subsidiary". Equity Bank Group (EBG). Retrieved 23 November 2014. 
  7. ^ "Results of the Extra-ordinary General Meeting of Equity Bank Limited held on 24th November, 2014". http://equitybankgroup.com/. Equity Bank Group. November 24, 2014. Retrieved November 26, 2014. 
  8. ^ Newvision, Archive (21 June 2009). "Equity Bank Cross-Lists On USE". New Vision (Kampala). Retrieved 23 November 2014. 
  9. ^ a b Herbling, David (2 January 2013). "Muguku Family Sells More Shares In Equity Bank". Business Daily Africa (Nairobi). Retrieved 23 November 2014. 
  10. ^ EBG, . "Equity Bank Kenya: Board of Directors". Equity Bank Group (EBG). Retrieved 23 November 2014. 
  11. ^ Namata, Berna (4 April 2011). "Equity Gets Kigali's Nod To Set Up Shop In Rwanda". The EastAfrican (Nairobi). Retrieved 23 November 2014. 
  12. ^ Staff Reporter, . (7 November 2011). "Rwanda: Equity Bank Enters Rwanda". East African Business Week (Kampala). Retrieved 23 November 2014. 
  13. ^ Kimani, Mwaura (31 January 2011). "Equity Bank Eyes 20 Percent Profits Outside Kenya". The EastAfrican (Nairobi). Retrieved 28 November 2014. 
  14. ^ Kangethe, Kennedy (19 August 2013). "Kenya: CBA Capital, Equity Investment Bank Join NSE". 98.4 Capital FM (Nairobi) via AllAfrica.com. Retrieved 28 November 2014. 

External links[edit]