We forecast a net interest income (NII) compound average growth rate (CAGR) of 16.0% between FY22-27e, driven by a net loan CAGR of 14.3%. The NII growth rises as net interest margin (NIM) expands 6.2% in FY23e (from 5.6% in FY22) because of a rising rate environment and then up to 6.4% by FY27e as […]
The Co-op’s earnings compound average growth rate (CAGR) decelerated from 34.6% over FY07-13 to 10.0% during FY13-22. It was due to: i) Net interest margin (NIM) contraction from an average of 8.4% over FY07-16 (before the introduction of rate caps) to 8.1% over FY17-22; ii) an increase in the cost of risk from 0.5% over […]
We reduce our earnings estimates for Equity Group (the group) by 16.5% in FY23e and 16.8% in FY24e. It can largely be explained by higher operating expenses, up 11.7% in FY23e and 15.6% in FY24e, driven by inflation, foreign exchange (FX) devaluation, and increased investments (in IT, staff, and new subsidiaries) by the group. We […]
On June 14, 2023, Equity Group Holdings (EGH) announced the acquisition of a 91.93% stake in Cogebanque from a group of investors (including the Rwandan government and Rwanda Social Security Board) pending regulatory approval. It is an all-cash offer of RWF59.5 billion (c.USD52.4 million) or RWF297,406/share. The term sheet also stipulates that the Rwandan government […]