It is nearly unimaginable that at one time Equity Bank, then known as Equity Building Society, would at one time rank among the most profitable lender in Kenya and the region by extension. Before the entry of Dr. James Mwangi, the company was posting Kes5 million (roughly $60,000 at the time)-figures that had accumulated to kes33 million (roughly $380,000 then) in 1993. It was the genius of Mwangi that turned around Equity to become a success story.
Profits
From staring at insolvency in the 90s, the financial institution maintained its enviable position as the second most profitable bank in the country. Equity recorded a net profit of kes19.8 billion for the year ending 2018, thanks to income from government securities. Interest income from Treasury bonds grew to kes16.3 billion, a growth of 21.7 percent from the previous year. The bank’s holdings of government securities grew to kes161 billion at the close of 2018 from kes128 billion in 2017. Its loan book hit kes297.2 billion in 2018 from kes279.1 billion the previous year.
Shareholders
The largest single shareholder is South Africa firm Arise Limited which holds a 12 percent stake in Equity Group. Aris-constituting Norfund, FMO and Rabobank-paid kes17.6 billion for a share of Equity Group Holdings kes147 billion market valuation. Aris took over the shares held by Norfininvest.
Dr. Mwangi said of the ARISE collaboration:
“We are excited by the expanded opportunities this development presents, to combine our market leading position with Arise, who bring along their substantial resources as well as expertise, which we believe will be invaluable in accelerating the growth of our business”
The top ten largest shareholders:
| Rank | Name of Owner | Percentage Ownership |
|---|---|---|
| 1. | Arise BV of Norway and Netherlands | 11.99[17][18] |
| 2. | British-American Investments Company | 5.52 |
| 3. | James Njuguna Mwangi | 5.52 |
| 4. | Equity Bank Employees’ Share Ownership Plan | 3.25 |
| 5. | Fortress Highlands Limited | 2.68 |
| 6. | Standard Chartered Nominees Limited A/C KE002427 | 2.56 |
| 7. | Standard Chartered Nominees Non-Resident A/C 9257 | 2.54 |
| 8. | Equity Bank Nominees Limited A/C 00104 | 2.47 |
| 9. | Stanbic Bank Nominees Limited A/C NR3530153-1 | 2.40 |
| 10. | Solidus Holdings Limited | 2.39 |
| 11. | 28,304 Other Investors | 60.82 |
| Total | 100.00 |
