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BBK Profit Before Tax Rises 8% Dividend set at 1/=
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mwanahisa
#1 Posted : Wednesday, February 13, 2013 9:16:57 AM
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Joined: 6/2/2008
Posts: 1,438
Reporting Season here we go. The big laggard sets it off.

http://www.reuters.com/a...gs-idUSN6E8M702D20130213
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mkonomtupu
#2 Posted : Wednesday, February 13, 2013 9:44:47 AM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
only 8% growth, the tide turned for the wabeberu banks
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mzalendomoja
#3 Posted : Wednesday, February 13, 2013 9:51:36 AM
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Joined: 7/17/2012
Posts: 14
Below expectation performance but still consistent with the Bank's recent trajectory. Dividends a bit disappointing. Time to bolt out.
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mwanahisa
#4 Posted : Wednesday, February 13, 2013 9:55:46 AM
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Not really a surprise. As an illustration of their business approach, between September 2011 and September 2012, BBK's balance sheet shrunk by 13 billion while KCB grew theirs by close to 50 billion in the same period.
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dunkang
#5 Posted : Wednesday, February 13, 2013 9:57:58 AM
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Joined: 6/2/2011
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atleast they haven't done what Simba and memba will do. #cooking_books
Receive with simplicity everything that happens to you.” ― Rashi

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mwekez@ji
#6 Posted : Wednesday, February 13, 2013 10:29:03 AM
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Joined: 5/31/2011
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@dunkang, eti they havent cooked. check loan loss provision is down a whooping 80% to KES 144.376M from KES 728.680M in 2011
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mwekez@ji
#7 Posted : Wednesday, February 13, 2013 10:39:26 AM
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The Balance Sheet has alot of room for lending if this bank was to move from the conservative position. The bank is also very liquid at a liquidity ratio of 46.8%. No wonder the high payout ratio. N'way, they can even do higher payout given that they (bbk) cant expand to the region like the truly local banks
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Ericsson
#8 Posted : Wednesday, February 13, 2013 10:58:50 AM
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Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
The asset base has began expanding which is a tool for further growth in profits and Loans and advances.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#9 Posted : Wednesday, February 13, 2013 11:05:28 AM
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Joined: 5/31/2011
Posts: 5,121
EPS: KES 1.61
DPS: KES 1.00 (KES 0.30 interim dividend + KES 0.70 final dividend)
NBV: KES 5.45

at the current market price of KES 16.30
P/E: 10.12x - Verdict: Fully valued
DY: 6.13% - Fair
P/B: 3x - Very Expensive
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mwanahisa
#10 Posted : Wednesday, February 13, 2013 11:18:06 AM
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Agree with Mwekezaji. Still wouldn't expect it to plunge dramatically, Foreigners still appear to have some faith in it. The honchos at Standard Bank Group (SA) had a target price of 19 just last week.
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dunkang
#11 Posted : Wednesday, February 13, 2013 12:02:05 PM
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DOWNLOAD THE REPORT HERE
Receive with simplicity everything that happens to you.” ― Rashi

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Ericsson
#12 Posted : Wednesday, February 13, 2013 3:49:11 PM
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The dividend payout has reduced by 35% even as the profits grew.The bank is now starting to preserve cash instead of distributing to shareholders.
This is a change of tact by the bank and the era of handsome dividends is over.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#13 Posted : Wednesday, February 13, 2013 4:10:21 PM
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@Ericsson, the payout in 2012 is higher than in 2011 when you factor the fact that a special dividend of KES 0.60 was paid in year 2011.

Year 2012
EPS: KES 1.61
DPS: KES 1.00
Payout ratio: 62.11%

Year 2011
EPS: KES 1.49
DPS: KES 0.90
Payout ratio: 60.40%
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FUNKY
#14 Posted : Wednesday, February 13, 2013 4:18:24 PM
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Joined: 4/30/2010
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mwekez@ji
#15 Posted : Wednesday, February 13, 2013 4:30:16 PM
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Posts: 5,121
@Ericsson, this BBK is quite a mature bank with very strong capital adequacy and liquidity ratios. They also cant expand to the region so they don’t seem to need any more capital. That leaves no need to retain profits. They may dish out a special dividend in year 2013 to keep dividend shareholders appeased rather than just lumping the money in government securities, just saying.
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Cde Monomotapa
#16 Posted : Wednesday, February 13, 2013 6:47:38 PM
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Joined: 1/13/2011
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Indeed. Local banks earn more coz they invest more in you. So much for the International Community Sad http://www.herald.co.zw/...w=article&Itemid=133
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