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Diamond Trust Bank Q3 Results review
Rank: Elder Joined: 9/15/2006 Posts: 3,906
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Top of class performance from Diamond Trust in today. What with EPS already exceeding full year last year by 100% in only 9 months? And so quiet, no fuss, one line explaining good fortunes are due to non-interest income rise... http://www.nse.co.ke/newsite/pd...ements/DTB%20RESULTS.pdf
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Rank: Veteran Joined: 6/17/2009 Posts: 1,621
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The third quarter earnings per share up from 4.96 to 10.83.Bond trading assisted.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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Top notch performance. I was afraid that they just could not replicate the powerful Q2 results!
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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cnn wrote: The third quarter earnings per share up from 4.96 to 10.83.Bond trading assisted. in other words Q3 is up 118% compared to last year's Q3. I will not sell bellow 180 after bonus next year.
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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@stockmastor can you comment.
Which of the three scenario came to pass. Iam waiing you.
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Rank: Veteran Joined: 7/24/2008 Posts: 781
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Akia nani nimekuwa sonko lol!!! I bought this stock coz I believe 100% in the management...I only required 15-20% growth annually to be satisfied...inaonekana utajiri umeingia mapema  The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Hats off, Pants off to these guys! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: New-farer Joined: 10/5/2010 Posts: 23
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good results, however take note of where the growth is coming from, the made 1 billion from other income (trading in bonds) prices of bonds go up when interest rates go down. I don't expect interest rates to go down any further so this growth in other incomes won't happen next year
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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@wangugi - But if they can pocket [cash in] the 'supernormal' profits this year then they go in stronger next year with a stronger capital base. Also the 'cash' from Bonds can be on-lent next year... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: New-farer Joined: 10/5/2010 Posts: 23
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@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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I'm happy to own this through Jubilee my store of value.
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline pesha ni pesha ata bangi ni pesa
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline @wangugi the other income that they have been getting from bonds may not be great but lets now think about the over 20 new branches they are opening... these are definitely bound to affect their bottom line next year... I'm now seriously looking at this company VERY closely though I'm not sure if I should buy since I'm already big into my sweetheart Jubilee Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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wangugi wrote:good results, however take note of where the growth is coming from, the made 1 billion from other income (trading in bonds) prices of bonds go up when interest rates go down. I don't expect interest rates to go down any further so this growth in other incomes won't happen next year I think no one is factoring in last months 10 year bond, which has seen interest rates rise... Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline I have had a closer look at the results and I have to agree with you. But I would only agree with you to the extent that when the effect of bond trading wears out, growth will decelerate but will not vanish. As g267 says, the additional branches will net in more customers bringing in additional transaction income. Also note that the loan book grew by almost 30% and is expected to continue growing. Hence the current relatively low PE ratio of 8.72 more than takes into account any reduction in PAT growth in 2011.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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guru267 wrote:
I'm now seriously looking at this company VERY closely though I'm not sure if I should buy since I'm already big into my sweetheart Jubilee
I have some DTB as well as Jubilee. My portfolio is skewed in favour of Jubilee which I prefer due to its divere range of businesses and assets. I will continue to hold DTB but I am inclined to add on to Jubilee rather than DTB. Let's see what the market makes of the results.
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Rank: New-farer Joined: 10/5/2010 Posts: 23
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mwanahisa wrote:wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline I have had a closer look at the results and I have to agree with you. But I would only agree with you to the extent that when the effect of bond trading wears out, growth will decelerate but will not vanish. As g267 says, the additional branches will net in more customers bringing in additional transaction income. Also note that the loan book grew by almost 30% and is expected to continue growing. Hence the current relatively low PE ratio of 8.72 more than takes into account any reduction in PAT growth in 2011. Branches take time to pay off, so expect a PAT decline next year. However the stock is good long term buy
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Do not overpay... even for the BEST companies!!! If you overpay then cry about how the 'stock' is not performing... upuzi! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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wangugi wrote:Branches take time to pay off, so expect a PAT decline next year. However the stock is good long term buy @Wangugi, Your conclusion that the PAT will decline next year because of the drop off in bond trading income, coupled with increased investment in new branches is rather simplistic. Practically all the other "local" banks have been increasing their branches over the last few years. None of them have reported reduced profits on account of this fact alone. Q3 2010 also shows that DTB grew its Net Interest Income (NII) by 40% vis-a-vis Q3 2009. If it continued with this run rate, by Q3 2011, the NII will have grown by another 1.38 Billion. If we assume everything else is held constant i.e. No income from bond trading but other operating income and expenditure items remain as they are (thus eliminating the assumed bond income of 1,052,362,000), DTB would increase the PBT figure by about 326 million. Now we know that it is highly unlikely that other income would drop to zero. So as long as other banks will be growing, you can be sure that DTB will be there along with them. It will just not be growing profits as fast as it has done this year. Besides, you will have to go way back - at least more than 6 years to the last time that DTB reported reduced profits. Over to you.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline And even on this point, the facts do not bear you out. PBT Minus Other Income (assuming it's all bond trading profits) grew by 27%. We can hardly call that flat. After all, SCBK grew their PAT by 17% vis-a-vis Q3 2009. It's still trading on a forward PE of 12.75.
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Diamond Trust Bank Q3 Results review
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