Outgoing Equity Group Chair rewarded handsomely
One of the most successful businesses in the country, Equity Group Holdings is set to send off their outgoing chairman, Peter Munga Shs. 50 million richer. This was triggered after it became clear during the bank’s AGM that he would not seek re-election. The one off gratuity is due to his 35-year length of service, commitment and dedication to the company that began in 1984 as a building society then became a bank after exactly 20 years of operation, making a triumphant entry into the banking industry. The lender has been acknowledged to revolutionize the banking industry as it made an entry with introduction of zero balance accounts for retail consumers.
Since being listed in the Nairobi Securities Exchange (NSE) in 2006, valued at Shs. 6.3 billion, the bank has seen steady growth over the past decade and now has a market capitalization of Shs. 158 billion therefore translating to a capital growth of 25 times. Investors in the bank have benefited from the largest returns on the NSE amid growth of its customer numbers. Share splits and bonus shares have seen the volume of issued shares rise from 90.5 million units up 41.6 times prior to listing at the NSE.
Their total dividend payouts since listing currently stand at Shs. 57 billion, which is more than the current market value of BAT Kenya, the cigarette manufacturer. Last year, Equity recorded a Shs. 19.6 billion net profit by December, a clean 26 times the value of their net profit in the year of their listing as a publicly traded company.
The bank has over the existence of its operations consistently ranked as the country’s most efficient bank alongside KCB Group thus attracting major global investors including BlackRock Frontiers Investment Trust Plc, a London based asset manager. The bank has also extended its operations in the East Africa region and in recent years preferred to better their regional operations while giving up entry to new markets. Congratulations to Mr Munga and his team.