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CBK Governor No Match to Kenyan Banks.
Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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mukiha wrote:selah wrote:@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
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The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings. The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"! If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer! bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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kizee1 wrote:mukiha wrote:selah wrote:@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
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The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings. The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"! If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer! bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities? Yes, I am aware of it; and it is also around 10% to 15%, bringing the total to around 25%. if you look at Equity [I have the full report], they have listed income from bond trading as a separate entry in note 9[b]... the figure is Sh2.048b; sounds a lot, but note that total income is Sh20.248b So, my estimate of 10% is good. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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....Equity has also given the income from counter withdrawals; Sh456m. Again, it sounds large, but with 6m customers, this is an average of 6-bob per month per customer!!!! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 5/18/2008 Posts: 796
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mukiha wrote:....Equity has also given the income from counter withdrawals; Sh456m.
Again, it sounds large, but with 6m customers, this is an average of 6-bob per month per customer!!!! Ngai... while I pay 850 per month to Stanchart.. I'm leaving..
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Equity charges ksh.50 if ur withdrawing from ur branch & Ksh.101 over the counter if u r withdrawing from another branch '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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selah wrote:Equity charges ksh.50 if ur withdrawing from ur branch & Ksh.101 over the counter if u r withdrawing from another branch And people don't use the atm because.....? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Now look how things sound when the shoe is on the other foot: http://www.wazua.co.ke/f...&t=11863#post163114
Everybody is lazy; not just bank managers. Individual investors as well... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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mukiha wrote:kizee1 wrote:mukiha wrote:selah wrote:@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
.
.
.
The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings. The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"! If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer! bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities? Yes, I am aware of it; and it is also around 10% to 15%, bringing the total to around 25%. if you look at Equity [I have the full report], they have listed income from bond trading as a separate entry in note 9[b]... the figure is Sh2.048b; sounds a lot, but note that total income is Sh20.248b So, my estimate of 10% is good. ur math is flawed...i know of one large bank that did 1.5bn in trading and 5bn in revaluation...my point is the line item that made banks cash last year will kill them this year...nearly every banks bond portfolio is under water...
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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mukiha wrote:selah wrote:Equity charges ksh.50 if ur withdrawing from ur branch & Ksh.101 over the counter if u r withdrawing from another branch And people don't use the atm because.....? The Limit. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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selah wrote:mukiha wrote:selah wrote:Equity charges ksh.50 if ur withdrawing from ur branch & Ksh.101 over the counter if u r withdrawing from another branch And people don't use the atm because.....? The Limit. And they don't want to go M-Kesho [Limit 70k] because....? And don't want to use cheques because....? Or debit cards because? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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kizee1 wrote:mukiha wrote:kizee1 wrote:mukiha wrote:selah wrote:@proverB My arguments are when banks make most of their cash through bonds or investments in CBK instruments it beats the purpose of the banking industry....
.
.
.
The other thing why would a bank charge me withdrawing charges of up to ksh.100 when in actual sense they are making more than 15% out of my savings. The first statement is a fallacy peddled by Kenyan media. As I have shown above, Bond income is less that 10% of the total income. That cannot be said to be "most of their income"! If your bank is charging you sh100 withdrawal fees, move to another bank. There are many that do not charge these fees, mine being one of them. Don't be a lazy customer! bond income is only 10pct of total? are u aware of an income line known as"other income" ??are u talkin about the interest on gvt securities or on trading gvt securities? Yes, I am aware of it; and it is also around 10% to 15%, bringing the total to around 25%. if you look at Equity [I have the full report], they have listed income from bond trading as a separate entry in note 9[b]... the figure is Sh2.048b; sounds a lot, but note that total income is Sh20.248b So, my estimate of 10% is good. ur math is flawed...i know of one large bank that did 1.5bn in trading and 5bn in revaluation...my point is the line item that made banks cash last year will kill them this year...nearly every banks bond portfolio is under water... Accounts of banks are public information [they are required by law to publish them in the national press]. So why do you want to sound secretive by saying "I know one large bank...". Name it; and support your position by telling us your source of information. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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@kizee1, I second Mukiha's comments. Kindly let us know which bank this is. mukiha wrote:kizee1 wrote:ur math is flawed...i know of one large bank that did 1.5bn in trading and 5bn in revaluation...my point is the line item that made banks cash last year will kill them this year...nearly every banks bond portfolio is under water... Accounts of banks are public information [they are required by law to publish them in the national press]. So why do you want to sound secretive by saying "I know one large bank...". Name it; and support your position by telling us your source of information.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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BTW: As I stated earlier, Equity made sh2b from bond trading. That information is in their annual report, note 9[b]. And is a revaluation surplus treated as an income? i don't think so, but accountants in the house can clarify.... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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"Why do you have big banks? Well, because banks like monopoly power; because banks like lobbying power; because, um, banks know that when they're too big, they will be bailed" WILLEM BUITER This happens everywhere. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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mukiha wrote:BTW: As I stated earlier, Equity made sh2b from bond trading. That information is in their annual report, note 9[b].
And is a revaluation surplus treated as an income? i don't think so, but accountants in the house can clarify.... revaluation is treated as income..chek out IAS 39 and the meaning of mark to market, did u follow the int rate trends of last year? just do the math...ur a brite lad...chek out the trading books of some of the large banks and u will have ur answer....
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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any1 kno how i cud short bank stocks?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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kizee1 wrote:any1 kno how i cud short bank stocks? In KE not possible, but I can see we have the same thots... Too big to fail (TBTF) would be my best short candidate... Record profits, record dividends of banks always invite short sellers when the dust settles...$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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hisah wrote:kizee1 wrote:any1 kno how i cud short bank stocks? In KE not possible, but I can see we have the same thots... Too big to fail (TBTF) would be my best short candidate... Record profits, record dividends of banks always invite short sellers when the dust settles... ....one can only dream au sio?
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Rank: Member Joined: 8/8/2009 Posts: 170
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kizee1 wrote:mukiha wrote:BTW: As I stated earlier, Equity made sh2b from bond trading. That information is in their annual report, note 9[b].
And is a revaluation surplus treated as an income? i don't think so, but accountants in the house can clarify.... revaluation is treated as income..chek out IAS 39 and the meaning of mark to market, did u follow the int rate trends of last year? just do the math...ur a brite lad...chek out the trading books of some of the large banks and u will have ur answer.... True... a look at the Statement of Changes in Equity would give a clearer picture... It depends on how the securities are classified i.e. 1. Held for Trading 2. Available for Sale 3. Held to Maturity Revaluation surplus is recognized as ‘income’ for HFT & AFS.....however, for AFS it falls under ‘Other Comprehensive Income’ while for HFT it’s recognized as Income from Operations. Doubtless this will have an effect on several financial ratios that form the basis of any analysts BUY/SELL recommendation. Of course, depending on exposure, portfolio mix, view of long-term interest rates, one way to avoid successive write-downs or negatively impacting Operating profit would be to re-classify the securities or get them off the balance sheet.... the first is easier said than done the second calls for a wee bit of creativity
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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kizee1 wrote:any1 kno how i cud short bank stocks? You can start by offloading your current bank stocks! It will only be a good move if the rates keep their upward momentum! @SufficientlyP
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