Stake of Kenyan banker James Mwangi in Equity Group gains $7.71 million in 83 days

The stake of Kenyan banker James Mwangi in Equity Group Holdings Plc has increased by $7.71 million (Ksh830.76 million) in 83 days.

An uptick in the group’s share price on the Nairobi Stock Exchange has triggered a $227.55-million (Ksh24.53 million) increase in the market capitalization of the leading financial services group, thus accruing a 17-percent gain for shareholders since April 1.

The gains can be linked to the group’s better-than-expected financial results for Q1 2021.

The group recently revealed in a filing that its profits for Q1 2021 surged by 64 percent to $81 million (Ksh8.7 billion) on the back of 32-percent growth in interest income and a 30-percent increase in non-funded revenue.

This is higher than last year’s $49.21 million (Ksh5.3 billion) in profits.

The group also registered a balance sheet expansion of 54 percent to reach $9.94 billion (Ksh1.07 trillion) in total assets on the back of a 58-percent growth in customer deposits.

This resilient financial performance for Q1 2021 impressed both investors on the local bourse and existing shareholders.

The ensuing bullish bias triggered the increase in the group’s share price from $0.362 (Ksh 39.05) on April 1 to $0.423 (Ksh45.55) as of press time, 5:00 pm (UTC+1) today, June 23.

Mwangi, the managing director and CEO of Equity Group, holds 3.38 percent of the group’s total issued shares, which translates to 127,809,180 ordinary shares.

In line with the 17-percent gain in the company’s shares on the Nairobi Stock Exchange, the market value of Mwangi’s stake has increased from $46.30 million (Ksh4.99 billion) to $54.01 million (Ksh5.82 billion).

This translates to an overall gain of $7.71 million (Ksh830.76 million) for the banker since April 1.