@ MatataMingi . whilst u are still dwelling on old news i made today a sweet 25k trading currencies...life's good...JOIN FOREX.

90 is too good to think of though it won't get there this year, what i'm kind of sure of is that Kcb might be going past 30 before July reasons being:
1. As the triton loan had been provided for previously which directly affected earnings & with the positive court ruling we expect some increase in earnings to the tune of the recovery.
2. S&L can now provide upto a billion to one client on mortgage financing & are going to provide the same in UG, TZ, SS & Rwanda.
3. Improvement in the cost to income ratio

erifloss, I thought KCB could lend as much as 6B to one client. Ama ni mimi niliona vibaya?

1B To 10,000 who mostly don't knw what they r doing is riskier than 1B to one who knows what s/he is doing. My 2 cents as well...

I'm not sure whether its 6b but what i know for sure is that its above 1b. Its better to lend 1b to 1 person who's credit score & rating is good rather than 10,000 who are perceived as risky. Going forward, with the reduction of govt shareholding there'll definately be a reduction in bad loans. Why do you think that SCBK has got the lowest default rates & yet so profitable!

Reads the newspaper (not a Kenyan one though)
Does not live in Kenya
Degree and other qualifications printed at River Road

They say, when the bank lends you 1k, its your problem to pay it back.... when it lends you 100m, its the bank's problem to get it back... or so it goes.

From what i have seen, those who borrower small amounts are more keen to pay back.... If you go to the village, if the folks dont pay up, its because they genuinely do not have the money and they "fear" defaults like an outbreak and they'd do anything not to be taken to court.

now, if the big guy is not paying up, ooooooh you know you are in bundus because he will take you round and round, in and out of all manner of courts with tens and tens of cases in different courts with all sorts of claims and delaying tactics..... There is also the aspect of risk management. With this, i am with JM all the way!

On KCB and the 90bob dream.... eeeeh, what did you call that guy again? if these are the sorts we are relying on for our investment advise, we shall die thousandaires in Zim terms!

@Wendz..FYI Zim abandoned the Zim-dollar in FY2009. It is now a forex economy with the USD being the "official" currency. Even the stocks on the ZSE r in usd with an inflation rate of only 3.3%

The Chinese are our longtime friends <supported the Zanu-PF geurilla movt against the whites> now they r the largest source of FDI so we will switch to the Yuan when the USD tanks

One who can borrow 1B and knows what s/he is doing might do YOU... (lender).

Diversification works fairly well in controlling risk... it works even better on credit risk!

Generally, there is sufficiently little correlation among individual borrowers to justify diversification (ie. the don't move in a herd like stocks... they don't collude & decide not to pay). Larger loans are (in risk theory) riskier that smaller ones.

I do not refer to 1B as a specific amount... just generally larger loans to smaller ones. In our market maybe 50m... maybe 100m... maybe 250m... these amounts require higher prudence i think.

Also in markets like ours, some larger borrowers usually have both the muscle to irregularly get the debt & the muscle to avoid footing the bill.