Equitel’s 4G to boost revenue growth. Should you buy Equity Bank shares?

By Nairobi Stocks Review

Equitel has upgraded to 4G network to offer subscribers faster internet speeds. Customers can collect 4G-enabled Equitel SIM cards at Equity Bank branches.

Equitel is Equity Bank’s telecom unit. It operates on a mobile network rented from Airtel Kenya. In addition to the regular telecom services such as call, text and mobile internet, Equitel also offers a range of financial services.

Customers can send money to others, make payments and withdraw cash from ATM using Equitel line. Additionally, customers can apply for Equity Bank loans through Equitel line. For investors, the launch of Equitel 4G service brings renewed focus on Equity Bank shares.

Equitel 4G service to boost revenue growth

Equitel expects the launch of 4G service to attract more customers to the network and drive revenue growth, the unit’s overseer Lanre Bamisebi said in a press release. With 4G service, Equitel seeks to capitalise on the rise of work-from-home and the growing uptake of digital banking.

Equity Bank’s telecom business appears to be growing rapidly. In the first quarter of 2021, it processed transactions worth Ksh421.8 billion from Ksh160.5 billion in a similar period last year.

If Equitel’s 4G service turns out to be a hit, it could help boost Equity Bank’s profits and make the bank’s shares more attractive to investors.

How do you buy Equity Bank shares?

Equity Bank shares trade on the Nairobi Securities Exchange under EQTY ticker symbol. To be able to buy shares in NSE-listed companies, you will need to open a CDS account for trading stocks. You can open the account with Equity Bank or a stockbroker of your choice. (Read How to choose the best stockbroker for beginners).

Once you set up the account, decide the amount of Equity Bank shares you want to purchase and place your order. There are different order types. A Market Order lets you buy shares at the current price. On the other hand, with a Limit Order you decide the price you want to pay for the shares.