equity News 1 IN THIS ISSUE EQUITY EQUITY BANK EQUITY JOURNEY OF SCHOLAR WINS ENTREPRENEURS’ SUCCESS - PICTORIAL ENTREPRENEUR’S STORIES AWARD FROM PAGE 5 CENTRE SPREAD PAGE 15 SEPTEMBER 2012 EquityA QUARTERLY NEWS PUBLICATIONNews OF EQUITY BANK www.equitybankgroup.com NOT FOR SALE Issue 05 LET AFRICA ARISE! See story pg. 2 Equity Bank CEO is the Ernst & Young World Entrepreneur Of The Year 2012 2 equity News Equity Bank CEO is the Ernst Dr. James Mwangi’s Achievements Dr. James Mwangi serves as the Chairman of Kenya’s Vision 2030 Delivery Board- the blue print to transform Kenya to & Young World Entrepreneur a middle income economy by 2030. He was honoured by His Excellency the President of Kenya Hon. Mwai Kibaki with the CBS (Chief of the Order of the Burning Spear) for of the Year 2012 his contribution towards economic development. In 2011, From pg. 1 Dr. Mwangi’s name was entered in the list of Kenyan heroes Dr. James Mwangi, CEO and Managing and legends during the Mashujaa Day celebrations. Director of Equity Bank is the Ernst Dr. Mwangi has received four honourary doctorate degrees & Young World Entrepreneur Of The for his contribution to humanity, entrepreneurship and Year 2012. At a colourful ceremony economic development. In 2012, he was voted by his peers held in Monte Carlo, Monaco, Dr. in banking for the Lifetime Achievement in Banking during Mwangi was picked from among the the 2012 Think Business Banking Awards. He is also Forbes 59 country finalists shortlisted for East African Business Leader of The Year 2012. In 2009, he the title across 51 countries, each of was named Africa CEO of the Year at the Africa Investor whom had already been named the Awards, while the African Banker named him African Ernst & Young Entrepreneur Of The Banker of the year in 2010 and 2011. In 2011, Dr. Mwangi Year in their home country. Dr. Mwangi won the inaugural African Leader of the Year award becomes the first business leader presented by the African Leadership Network. In 2011, from Sub Saharan Africa to win this Forbes named Dr. Mwangi among the 20 most influential prestigious award. He was also among people in African business. the finalists who were inducted into Globally, Dr. Mwangi’s work has drawn recognition. He the Entrepreneur Of The Year Hall of serves at the Global Advisory Council of VISA Inc. and Fame and the World Entrepreneurship Dr. Mwangi (R) celebrates the award with (L) John Ferraro, Global COO is also a member of the Clinton Global Initiative. He is a Academy. of Ernst & Young holder of the Global Vision Award won in 2007 alongside Ruben Vardanian, President, Troika social - economically is seen through Dr. Mwangi has led Equity Bank to Nobel Laureate Prof. Mohammed Yunus of Grameen Dialog Russia and Chair of the judging the transformational story of Equity constantly balance social good and Bank during which they were cited as “Initiators of the panel said, “Not only has James really Bank. Through a constant focus on economic good through exemplary concept of the future that will shape the world economy”. transformed people’s lives across exceptional customer experience, performance. Through Equity The Financial Times named Dr. Mwangi among the top 50 Africa by offering them access to relationship banking, capacity Group Foundation (EGF), the Bank emerging world thought leaders. funding that they have never had building among staff and an effective implements high impact social Dr. Mwangi also serves on the UN Advisory Groups on before, Equity Bank continues to grow governance structure, he has led the programs which are sustainable, Inclusive Finance as well as on Global Sustainability. He quickly through a strong financial Bank from a technically insolvent scalable and have the ability to serves as an external advisor on inclusive finance in the Bill performance.” building society with an asset base address social needs with commercial and Melinda Gates Foundation and is also a member of the Jim Turley, Global Chairman and CEO of Ksh28 million in 1993 to become solutions. By leveraging on the Equity G20 Advisory Board on Agriculture. He is a Certified Retail of Ernst & Young, said, “Over the a leading all inclusive commercial Bank infrastructure, EGF ensures a Banker and was admitted to the honourary membership past 26 years, entrepreneurs have bank with an asset base of over high return on social investments in of the International Academy of Retail Banking and also done more than any other group to Ksh220 billion and listed in Nairobi key thematic areas which include serves as a member of the World Economic Council. He is a stimulate innovation, job creation Securities Exchange and Uganda education, financial education, guest lecturer in Stanford University, Columbia University, and prosperity during both periods of Securities Exchange. The Bank has entrepreneurship, agriculture, the Massachusetts Institute of Technology (MIT) and Lagos growth and in challenging economic a regional presence in five countries innovation, health as well as Business School where the Equity Bank business model is a conditions. James epitomizes the and a pan-African expansion environmental management. case study. In 2012, Dr. Mwangi was appointed to serve in vision and determination that set strategy. Since listing in 2006, Equity Among the social programs by two global councils; the G8 New Alliance for Food Security entrepreneurs apart and is very worthy Bank’s shareholder value has grown EGF is the Wings to Fly program, and Nutrition and the Global Agenda Council on New of the title Ernst & Young World 900% creating immense wealth for a Ksh10 billion scholarship fund Models of Economic Thinking 2012. He Entrepreneur Of The Year 2012.” shareholders. From a customer base of targeting 10,000 academically gifted was also named by Africa Investor as In describing Dr. Mwangi as an 27,000 in 1993, the Bank is now home children from financially challenged Africa’s Innovation Leader-of-the-Year exceptional entrepreneur, Gitahi to over 8 million accounts accounting backgrounds with a comprehensive 2012. Gachahi, the Chairman& CEO, Ernst for nearly 50 percent of all bank secondary school scholarship and & Young Eastern Africa said, “Equity accounts in Kenya, and is the largest leadership program. The program is Bank is a study in good corporate bank by customer base in Africa with a partnership with The MasterCard citizenship. By giving all stake holders a focus at the base of the pyramid. Foundation and has also received a compelling value proposition; they Returns have grown from a loss of Ksh5 financial support from UKAID, USAID feel that the bank represents their million in 1993 to a profit of Ksh12.8 and KFW of Germany. Through hopes and aspirations. Dr. Mwangi billion in 2011 making Equity Bank one Equity Bank’s University Sponsorship has redefined the risk profile of of the most profitable companies in program that benefits the top boy borrowers and depositors. Through his East Africa with a compounded annual and top girl student in each district Equity Bank Accolades unique model, he has made a strong growth rate of 78% for the last ten where the Bank operates, 1290 Dr. James Mwangi has led Equity Bank to receive numerous local and statement that with exceptional client years five of which have been ravaged scholars have so far benefited with global awards and accolades including: service and visionary leadership, by global financial crisis. The Bank has over 69 of the beneficiaries currently 2012 companies can create wealth even as been growing ten-fold every five years pursuing education in world leading • Best Managed Company in Africa in banking and finance sector - Euromoney they address social needs.” for the last twenty years. universities including Ivy League • Most Innovative Bank - African Banker When receiving the award, Dr. Mwangi Equity Bank is currently ranked 34th in schools in USA. EGF in partnership 2011 said, “This is a global recognition for market capitalization in Africa. Equity with The MasterCard Foundation • New Sustainability Champions redefining the future of growth - Africans who are embracing the power Bank Group has evolved to become a is implementing a financial literacy World Economic Forum of entrepreneurship to change the diversified financial services provider program in Kenya targeting one million • Africa’s Best Initiative in support of SMEs and the Millennium economic and social state of Africa.” offering a full range of personal women and young entrepreneurs at Development Goals - Africa Investor Awards Dr. Mwangi’s story of entrepreneurship and corporate banking as well as a cost of Ksh1 billion out of whom • Best Bank in Kenya – Euromoney is as amazing as it is inspirational. investment banking, mortgages, 400,000 have already completed the 2010 He was brought up by his widowed custodial services and insurance. 12 week training. Out of this program, • Best performing Ai40 Company of the year in Africa - Africa Investor mother who was a small scale farmer. From a staff complement of 27, Equity 10,000 entrepreneurs will be selected 2009 He had to fend for himself at an early Bank now has nearly 7000 employees to undergo an acceleration program in • Emerging Markets Most Sustainable Bank in Africa and Middle East age by selling charcoal, fruits and milk in tandem with the institutional entrepreneurship. - IFC & Financial Times to raise money for his school fees. This growth and expansion. Its innovative Previous winners of the Ernst & Young • Best performing Ai100 Company in Africa- Africa Investor background helped to nurture in him and inclusive business model has World Entrepreneur of the Year have • Microfinance Bank of the Year - African Banker Awards a determination to solve the African demonstrated the capability to evolve come from Singapore, India, Germany, • African Business of the Year - Commonwealth Business Council paradox of a continent endowed with sub models such as agency banking, Italy, the Philippines, the United States, 2008 resources, human capital and yet which is nurturing entrepreneurs, Canada, Switzerland, China, the • Best Bank in Kenya – Euromoney weighed down by abject poverty.