Equity Bank Group

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Equity Bank Group
Type Public Company
Traded as KN: EQTY
USE: EBL
Industry Banking and Finance
Predecessor(s) 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$126.8+ million (KES:10.33 billion) (2011)[1]
Total assets US$2.66 billion (KES:220 billion) (H1:2012)
Employees 6,000+ (2012)
Website www.equitybank.co.ke

Equity Bank Group, 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

As of June 2012, Equity Bank Group is a large financial services organisation in East Africa, with an asset base valued at over US$2.66 billion (KES:220 billion), with a total customer base in excess of 7.8 million, in the region the group serves.[2] Shareholder's equity was valued at about US$421 million (KES:34.3 billion), in December 2011.[3]

The bank was named as the "Best Performing Company in Africa" during the annual African Investor Index Awards held 21 September 2009 in New York City.[4] In June 2008, the bank was voted by Euromoney awards for excellence as the best bank in Kenya in June 2008. In Kenya, 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.[5]

History

Equity Bank was founded as Equity Building Society (EBS) in October 1984 in Kenya and was originally a provider of mortgage financing for the majority of customers who fell into the low income population. The vast majority of Africans have historically been excluded from formal sources of capital, such as banks, building societies and other regulated financial institutions. They therefore 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 Equity.

Having been declared technically insolvent in 1993, Equity Bank Group later returned in the follow 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.

Ownership

The stock of Equity Bank Group is traded on the Nairobi Stock 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.[6] As of December 2011, shareholding in the group's stock was as depicted in the table below:[7][8]

Equity Bank Group Stock Ownership
Rank Name of OwnerPercentage Ownership
1Helios Investment Partners of the United Kingdom 24.45
2British-American Investments Company 7.66
3Equity Bank Employees’ Share Ownership Plan 3.86
4James Njuguna Mwangi 3.45
5Equity Nominees Limited A/C 00104 2.97
6Fortress Highlands Limited 2.73
7Others 54.88
Total100.00
  • By Virtue of his shareholding and units in British American Investments Company (K) Limited and Employee Share Ownership Plan ( ESOP) respectively , Group CEO James Mwangi’s total direct and indirect shareholding is 4.88%.

Board of directors

Mr. Peter 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, non-executive director
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[9]

Member companies

The companies that compose the Equity Bank Group include but are not limited to the following:[10]

  1. Equity Bank – Nairobi, Kenya Kenya
  2. Equity Bank (Rwanda) – Kigali, Rwanda Rwanda[11][12]
  3. Equity Bank (South Sudan) – Juba, South Sudan South Sudan
  4. Equity Bank (Tanzania) – Dar es Salaam, Tanzania Tanzania -[13]
  5. Equity Bank (Uganda) – Kampala, Uganda Uganda
  6. Equity Consulting Group Limited – Nairobi, Kenya Kenya
  7. Equity Insurance Agency Limited – Nairobi, Kenya Kenya
  8. Equity Nominees Limited – Nairobi, Kenya Kenya
  9. Equity Investment Bank Limited – Nairobi, Kenya Kenya[14]
  10. Finserve Africa Limited – Nairobi, Kenya Kenya
  11. Equity Group Foundation – Nairobi, Kenya Kenya

Corporate social responsibility

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.[15]

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

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".

External links

See also

References

  1. ↑ Equity Bank Group Records Growth In Aftertax Profit
  2. ↑ Total Asset Valuation & Total Customer Base of Group In June 2012
  3. ↑ December 2011 Audited Financial Report for Group
  4. ↑ Equity Bank Group Wins Award in 2009
  5. ↑ About Equity Bank Group
  6. ↑ Equity Bank Group Crosslisted on the USE on June 18, 2009
  7. ↑ Equity Bank Group 2012 Annual Report
  8. ↑ James Mwangi Is Largest Individual Shareholder
  9. ↑ December 2011 Audited Financial Report for Group-Board of Directors
  10. ↑ Members Of Equity Bank Group
  11. ↑ Equity Bank Group Obtains Rwanda Banking License
  12. ↑ Equity Bank Opens In Rwanda
  13. ↑ Equity Bank Group Enters Tanzania And Rwanda In Q1 2011
  14. ↑ Equity Investment Bank Limited Is A Trading Participant At The Nairobi Stock Exchange
  15. ↑ Equity Group Foundation

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