Equity Group Holdings

Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo.[5]

Equity Group Holdings Limited
TypePublic Company
KN: EQTY
USE: EBL
IndustryBanking and Finance
PredecessorEquity Building Society
Founded1984
Headquarters
9th Floor, Equity Centre
Hospital Road, Upper Hill
Nairobi, Kenya
Key people
David Ansell
Chairman[1][2]
James Mwangi
Group CEO
ProductsLoans, mortgages, investments, debit cards, credit cards
Revenue Aftertax:KSh18.9 billion (US$189 million) (2017)[3]
Total assetsKSh524.5 billion (US$5.243 billion) (2017)[3]
Number of employees
8,959 (2019)[4]
Websiteequitygroupholdings.com

Overview

EGHL is a large financial services conglomerate. As of 31 December 2017, it had assets exceeding KSh524.5 billion (US$5.243 billion). At the time, total group customers were 12.1 million in 6 African Great Lakes countries, with KSh373.1 billion (US$3.73 billion) in deposits.[3]

In June 2008, EGHL was voted by Euromoney Awards for Excellence as the best bank in Kenya. EGHL was named 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 2008 at the Nairobi Stock Exchange. EGHL was named as the Best Performing Company in Africa during the annual African Investor Index Awards, held on 21 September 2009, in New York City.[6] EGHL has exclusive rights to issue American Express credit cards across the African continent outside South Africa.[7]

History

EGHL was founded in Kenya, the largest economy in the East African Community, as the Equity Building Society (EBS) in October 1984.[8] EBS was originally a provider of mortgage financing for customers in the low income population. Also, due to its rural banking orientation, promotion of agribusiness is a significant and strategic intervention by the bank. By September 2015, Equity Bank had more than 9.2 million customers.[9] 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 deployed.[10]

Road sign of the Equity Bank in Juba, South Sudan

Prior to November 2014, Equity Bank was both a licensed bank and a holding company for its subsidiaries. On 31 October 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.[11] These resolutions were all adopted during an extraordinary shareholders general meeting held on 24 November 2014 leading to the formation of Equity Bank Kenya Limited.[12]

In September 2015, the group completed its acquisition of 79 percent of DR Congo based  ProCredit Bank Congo SARL from Procredit Group.[13] This acquisition marked the group's entry into sub-Saharan Africa’s third most populous country.[8][14]

In April 2019, The EastAfrican newspaper reported that Equity Group had signed binding memoranda with Atlas Mara Limited (ATMA), to acquire banking units belonging to ATMA, in Zambia, Mozambique, Tanzania and Rwanda, in a share swap valued at US$105.71 million (KSh10.7 billion).[15] The acquisition includes 62 percent of Banque Populaire du Rwanda, 100 percent of African Banking Corporation of Zambia, African Banking Corporation of Mozambique and African Banking Corporation of Tanzania. The transaction requires approval from regulators and shareholders from the five countries involved.[16] In exchange for that ownership, ATMA will receive 6.27 percent shareholding in Equity Group Holdings Limited.[15][16]

In June 2020, the New Times (Rwanda) newspaper reported that the ...."binding term sheet that has been signed for the proposed acquisition of Atlas Mara Group’s assets in Rwanda, Tanzania, Mozambique and Zambia had expired with the parties not having signed detailed transaction agreements".... Those plans were called off at that time.[17]

In September 2019, Equity Bank Group began talks to acquire a controlling stake in Banque Commerciale du Congo (BCDC), the second-largest commercial bank in the Democratic Republic of the Congo.[18] If and when the transaction is concluded, the new acquisition is expected to be merged with the existing Equity Bank Congo.[19] In August 2020, Equity Group Holdings paid US$95 million (approx. KES:10.2 billion), for a 66.5 percent ownership in BCDC. Once the regulatory approvals are obtained, BCDC will be integrated into Equity Bank Congo.[20]

Ownership

The stock of Equity Group Holdings Limited 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.[21] As of December 2016, shareholding in the group's stock was as depicted in the table below:[22]

Equity Group Holdings Limited Stock Ownership
RankName of OwnerPercentage Ownership
1.Arise BV of Norway and Netherlands11.99[22][23]
2.British-American Investments Company5.52
3.James Njuguna Mwangi5.52
4.Equity Bank Employees' Share Ownership Plan3.25
5.Fortress Highlands Limited2.68
6.Standard Chartered Nominees Limited A/C KE0024272.56
7.Standard Chartered Nominees Non-Resident A/C 92572.54
8.Equity Bank Nominees Limited A/C 001042.47
9.Stanbic Bank Nominees Limited A/C NR3530153-12.40
10.Solidus Holdings Limited2.39
11.28,304 Other Investors60.82
Total100.00

Board of directors

The following are the board members of Equity Group Holdings Limited, as of 22 October 2016.[24]

  1. David Ansell, Chairman
  2. James Mwangi, CBS, Group Managing Director & CEO
  3. Benson Wairegi, EBS, non-executive Vice-chairman
  4. Temitope Lawani
  5. Bhartesh Shah
  6. Fredrick Muchokir
  7. Ernest Nzovu
  8. Babatunde Soyoye
  9. Shem Migot-Adholla
  10. Helen Gichohi, OGW, MBS
  11. Alykhan Nathoo
  12. Dennis Aluanga
  13. John Staley
  14. Elizabeth Lwanga
  15. Mary Wamae Company secretary

Member companies

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

  1. Equity Bank Kenya Limited – Nairobi, Kenya – 100% Shareholding – A commercial bank in Kenya, serving individuals and businesses.
  2. Equity Bank Rwanda Limited – Kigali, Rwanda [25][26] – 100% Shareholding – A commercial bank in Rwanda, serving both individuals and businesses.
  3. Equity Bank South Sudan Limited – Juba, South Sudan – 100% Shareholding – A commercial bank in South Sudan.[27]
  4. Equity Bank Tanzania Limited – Dar es Salaam, Tanzania [28] – 100% Shareholding – A commercial bank in Tanzania.
  5. Equity Bank Uganda Limited – Kampala, Uganda – 100% Shareholding – A commercial bank in Uganda.
  6. Equity Commercial Bank of Congo – Kinshasa, Democratic Republic of the Congo : 77.5 percent Shareholding – A commercial bank in DR Congo.[27][29]
  7. Equity Consulting Group Limited – Nairobi, Kenya
  8. Equity Insurance Agency Limited – Nairobi, Kenya – 100% Shareholding – The insurance agency arm of the group. Offering bancassurance services to customers
  9. Equity Nominees Limited – Nairobi, Kenya – 100% Shareholding – A Nominee company.[30] Holding investments on behalf of customers.[22]
  10. Equity Investment Bank Limited – Nairobi, Kenya [31] – 100% Shareholding – An investment bank in Kenya. A member of the Nairobi Securities Exchange and licensed by the Capital Markets Authority.
  11. Finserve Africa Limited – Nairobi, Kenya – 100% Shareholding – A mobile virtual network operator (MVNO) in the Kenya.
  12. Equity Group Foundation – Nairobi, Kenya – 100% Shareholding – The philanthropy and corporate social responsibility arm of the group.

See also

References
  1. Okoth, Edwin (6 June 2018). "Peter Munga retires as Equity chair after serving for 35 years". Business Daily Africa. Nairobi. Retrieved 6 June 2018.
  2. Gachane, Ndung'u (1 August 2018). "Retiring Equity Bank chairman takes his successor to where it all began". Business Daily Africa. Nairobi. Retrieved 1 August 2018.
  3. Njugunah, Margaret (22 March 2018). "Kenya: Equity Bank Group Profit Up By 14% to Sh18.9 Billion". Nairobi: 98.4 Capital FM. Retrieved 24 March 2018.
  4. Victor Juma (5 July 2019). "Equity deal adds 2,641 new staff to payroll". Business Daily Africa. Nairobi. Retrieved 5 July 2019.
  5. Wahito, Margaret (26 May 2015). "Equity Group enters DRC market". Nairobi: 98.4 Capital FM. Retrieved 24 March 2018.
  6. Juuko, Sylvia (28 September 2009). "Equity Scoops Best Company Awards". New Vision (Kampala). Archived from the original on 29 June 2015. Retrieved 23 November 2014.
  7. Okuttah, Mark (15 October 2014). "Equity Bank To Issue AmEx Cards Across Africa". Business Daily Africa (Nairobi). Retrieved 23 November 2014.
  8. EGHL (22 October 2016). "Equity Group Holdings Limited: Our History". Nairobi: Equity Group Holdings Limited (EGHL). Retrieved 22 October 2016.
  9. Mark Okuttah (6 March 2015). "CBA now biggest retail bank with 10 million customers 2016". Business Daily Africa. Nairobi. Retrieved 22 October 2016.
  10. Business Daily Reporter (22 July 2014). "Super Profits Earn Equity, KCB Top Global Rankings". Business Daily Africa. Nairobi. Retrieved 23 November 2014.
  11. 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). Archived from the original on 12 November 2014. Retrieved 23 November 2014.
  12. EBG (24 November 2014). "Results of the Extra-ordinary General Meeting of Equity Bank Limited held on 24th November, 2014". Nairobi: Equity Bank Group (EBG). Retrieved 26 November 2014.
  13. Brian Ngugi (17 September 2015). "Equity Bank Completes Acquisition of DRC's ProCredit Bank". Business Daily Africa. Nairobi. Retrieved 17 September 2015.
  14. Obulutsa, George (26 May 2015). "Kenya's Equity Bank To Expand To Congo via Acquisition - CEO". Thomson Reuters. Retrieved 26 May 2015.
  15. Business Daily Africa (30 April 2019). "Equity To Acquire Banks In Four African Countries In $105 Million Deal". The EastAfrican. Nairobi. Retrieved 30 April 2019.
  16. George Obulutsa (30 April 2019). "Kenya's Equity Group in deal to buy African bank stakes". Reuters.com. Retrieved 30 April 2019.
  17. Collins Mwai (23 June 2020). "Why Equity Bank's plans to acquire BPR have been called off". New Times (Rwanda). Kigali. Retrieved 23 June 2020.
  18. Adonijah Ochieng (9 September 2019). "Equity To Expand In DRC With Acquisition of Second-Largest Bank". Business Daily Africa. Nairobi. Retrieved 15 September 2019.
  19. Patrick Alushula (11 September 2019). "Equity tipped to spend Sh17bn in DRC bank deal". Business Daily Africa. Nairobi. Retrieved 15 September 2019.
  20. Victor Juma (12 August 2020). "Equity pays Sh1bn less in buyout of DRC bank". Business Daily Africa. Nairobi. Retrieved 12 August 2020.
  21. Newvision, Archive (21 June 2009). "Equity Bank Cross-Lists On USE". New Vision. Kampala. Archived from the original on 21 October 2014. Retrieved 23 November 2014.
  22. Ngugi, Brian (7 July 2017). "Dutch banking giant gets Equity shares". Business Daily Africa. Nairobi. Retrieved 7 July 2017.
  23. Gachiri, John (18 January 2015). "Norwegians Snap Up Equity Stake In Africa Buying Blitz". Business Daily Africa. Nairobi. Retrieved 19 January 2015.
  24. Bloomberg Research (22 October 2016). "Company Overview of Equity Group Holdings Limited: Board Members". Bloomberg.com. Retrieved 22 October 2016.
  25. Namata, Berna (4 April 2011). "Equity Gets Kigali's Nod To Set Up Shop In Rwanda". The EastAfrican (Nairobi). Retrieved 23 November 2014.
  26. Staff Reporter, . (7 November 2011). "Rwanda: Equity Bank Enters Rwanda". East African Business Week (Kampala). Retrieved 23 November 2014.CS1 maint: numeric names: authors list (link)
  27. Juma, Victor (20 April 2017). "Equity Group now raises stake in its Congo unit to 86 percent". Business Daily Africa. Nairobi. Retrieved 24 March 2018.
  28. Kimani, Mwaura (31 January 2011). "Equity Bank Eyes 20 Percent Profits Outside Kenya". The EastAfrican (Nairobi). Retrieved 28 November 2014.
  29. Adonijah Ochieng (9 September 2019). "Equity To Expand In DRC With Acquisition of Second-Largest Bank". Business Daily Africa. Nairobi. Retrieved 8 October 2019.
  30. "Nominee Director and Nominee Companies". www.offshore-islands.com. Retrieved 13 May 2015.
  31. 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.
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