Wazua
»
Investor
»
Stocks
»
FULL YEAR 2012 BANKING SECTOR VALUATION
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
CFC: VWAP KES 60, P/E 6x, P/B 0.87, ROA 2.1, ROE 11%, ROaA 3.1%, ROaE (excl. goodwill) 21.6%, Gross NPL/Loans 1.9%
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
mwekez@ji wrote:CFC: VWAP KES 60, P/E 6x, P/B 0.87, ROA 2.1, ROE 11%, ROaA 3.1%, ROaE (excl. goodwill) 21.6%, Gross NPL/Loans 1.9% Even a crazy rally to KES60...its still the cheapest stock in the banking sector.
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
the deal wrote:HF was never a bank, its only now that theyre being allowed to operate current accounts. The low RoE and RoA is due to cost of funds. The big banks i.e Equity Bank and KCB can get cheap deposits from their vast customer networks and lend at crazy prices thus enjoying better margins which the mid tier banks can only dream off. Give us the comparative numbers for Equity Bank and KCB on the following metric to support your statement above: 1.Average interest on loans 2.Average interest expense 3.Spread For HF, 2012 Average interest on loans 14.16% Average interest expense 10.01% Spread 4.14% 2011 Average interest on loans 11.54% Average interest expense 4.55% Spread 6.99% 2010 Average interest on loans 11.39% Average interest expense 4.98% Spread 6.42%
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
the deal wrote:mwekez@ji wrote:CFC: VWAP KES 60, P/E 6x, P/B 0.87, ROA 2.1, ROE 11%, ROaA 3.1%, ROaE (excl. goodwill) 21.6%, Gross NPL/Loans 1.9% Even a crazy rally to KES60...its still the cheapest stock in the banking sector. FY 12 growth was stellar courtesy of Non Interest Revenue. The performance of Net Interest Income, Loan book, and customer deposit book lagged. Whats your projected bottom line growth in FY 2013?
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
mwekez@ji wrote:the deal wrote:HF was never a bank, its only now that theyre being allowed to operate current accounts. The low RoE and RoA is due to cost of funds. The big banks i.e Equity Bank and KCB can get cheap deposits from their vast customer networks and lend at crazy prices thus enjoying better margins which the mid tier banks can only dream off. Give us the comparative numbers for Equity Bank and KCB on the following metric to support your statement above: 1.Average interest on loans 2.Average interest expense 3.Spread For HF, 2012 Average interest on loans 14.16% Average interest expense 10.01% Spread 4.14% 2011 Average interest on loans 11.54% Average interest expense 4.55% Spread 6.99% 2010 Average interest on loans 11.39% Average interest expense 4.98% Spread 6.42% I will give you the figures for Equity Bank. Net Interest Margin 2012-13% 2011-11.6% 2010-11.9% Source: Equity Bank Investor Briefing 2012. I hope its clear now.
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
the deal wrote:mwekez@ji wrote:the deal wrote:HF was never a bank, its only now that theyre being allowed to operate current accounts. The low RoE and RoA is due to cost of funds. The big banks i.e Equity Bank and KCB can get cheap deposits from their vast customer networks and lend at crazy prices thus enjoying better margins which the mid tier banks can only dream off. Give us the comparative numbers for Equity Bank and KCB on the following metric to support your statement above: 1.Average interest on loans 2.Average interest expense 3.Spread For HF, 2012 Average interest on loans 14.16% Average interest expense 10.01% Spread 4.14% 2011 Average interest on loans 11.54% Average interest expense 4.55% Spread 6.99% 2010 Average interest on loans 11.39% Average interest expense 4.98% Spread 6.42% I will give you the figures for Equity Bank. Net Interest Margin 2012-13% 2011-11.6% 2010-11.9% Source: Equity Bank Investor Briefing 2012. I hope its clear now. For KCB are welcomed. ... The Equity Bank's margin looks crazy
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
@Yscun. Fantastic thread. #getting back to bizness. HF is hands down the best bargain. NIC looks interesting too. the only other that id consider due to its valuation. The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
|
mwekezaji, I get you. I think HF+Equity provides a good mix of exposure to the banking sector NB: Equity Bank books closure Friday 15th March GOD BLESS YOUR LIFE
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
Tier I banks truly have a huge a advantage in maintaining higher interest rates on loans than Tier II banks yet their cost of customer deposits is much lower than that of Tier II. The Tier I Banks interest rate spread are multiples more than those of Tier II Banks:
2012
HFCK
Average interest on loans 14.16%
Average interest expense 10.01%
Spread 4.14%
NIC
Average interest on loans 13.63%
Average interest expense 6.90%
Spread 6.74%
KCB
Average interest on loans 16.05%
Average interest expense 3.90%
Spread 12.15%
Equity Bank
Average interest on loans 20.25%
Average interest expense 3.12%
Spread 17.13%
2011
HFCK
Average interest on loans 11.54%
Average interest expense 4.55%
Spread 6.99%
NIC
Average interest on loans 10.62%
Average interest expense 3.65%
Spread 6.98%
KCB
Average interest on loans 11.88%
Average interest expense 1.47%
Spread 10.41%
Equity Bank
Average interest on loans 14.57%
Average interest expense 1.52%
Spread 13.05%
Note to Wazua admin >>> pls add a feature allowing posting of ms excel sheets/table
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
youcan'tstopusnow wrote:mwekezaji, I get you. I think HF+Equity provides a good mix of exposure to the banking sector
NB: Equity Bank books closure Friday 15th March
 (one Tier II + one Tier I) HF + Equity it is. Already in HF and have put eyes on Equity. NIC + KCB is another combo worth a thought at the right price
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
mwekez@ji wrote:youcan'tstopusnow wrote:mwekezaji, I get you. I think HF+Equity provides a good mix of exposure to the banking sector
NB: Equity Bank books closure Friday 15th March
(one Tier II + one Tier I) HF + Equity it is. Already in HF and have put eyes on Equity. NIC + KCB is another combo worth a thought at the right price doesn't equity's p/b of 2.59 put you off? A fantastic company and stock though The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
Aguytrying wrote:mwekez@ji wrote:youcan'tstopusnow wrote:mwekezaji, I get you. I think HF+Equity provides a good mix of exposure to the banking sector
NB: Equity Bank books closure Friday 15th March
(one Tier II + one Tier I) HF + Equity it is. Already in HF and have put eyes on Equity. NIC + KCB is another combo worth a thought at the right price doesn't equity's p/b of 2.59 put you off? A fantastic company and stock though Equity Bank is a money making machine (ROA & ROE) so its bound to be priced at a premium. Looking to start buying from P/B of 2x and P/E of 7.25x. I think those who got in at a price of KES 16 at the beginning of last year are a very lucky lot
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
mwekez@ji wrote:Aguytrying wrote:mwekez@ji wrote:youcan'tstopusnow wrote:mwekezaji, I get you. I think HF+Equity provides a good mix of exposure to the banking sector
NB: Equity Bank books closure Friday 15th March
(one Tier II + one Tier I) HF + Equity it is. Already in HF and have put eyes on Equity. NIC + KCB is another combo worth a thought at the right price doesn't equity's p/b of 2.59 put you off? A fantastic company and stock though Equity Bank is a money making machine (ROA & ROE) so its bound to be priced at a premium. Looking to start buying from P/B of 2x and P/E of 7.25x. I think those who got in at a price of KES 16 at the beginning of last year are a very lucky lot When you think of a earnest KCB already working toward Equity's stellar Stats then you might want to consider KCB more. As Buffett qouted Gretsky*, "I skate to where the puck is going to be, not where it has been." #Tafakari
|
|
|
Rank: Veteran Joined: 7/8/2008 Posts: 947
|
Cde Monomotapa wrote:
Equity Bank is a money making machine (ROA & ROE) so its bound to be priced at a premium. Looking to start buying from P/B of 2x and P/E of 7.25x. I think those who got in at a price of KES 16 at the beginning of last year are a very lucky lot
When you think of a earnest KCB already working toward Equity's stellar Stats then you might want to consider KCB more. As Buffett qouted Gretsky*, "I skate to where the puck is going to be, not where it has been." #Tafakari[/quote] Hi comrade monomotapa, Can you decipher what your fellow zimbabweans are saying about Kenya elections in the comment section of your auspicious news paper in the link below? Are they comparing CORD to MDC and Jubilee to Zanu PF? Link
|
|
|
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
|
The High Court has stopped Kenya Revenue Authority (KRA) from charging excise duty on money transfer products run by banks, cushioning consumers from paying additional charges on services like ATM withdrawals. http://www.businessdaily...8/-/io25ls/-/index.html
GOD BLESS YOUR LIFE
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
 Despite the EBL high % increase, its ratio of net interest income to total income still lies at the most comfortable position in comparison to the other big 5. More
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
Basically banks with interest rate sensitive liabilities are the ones you should be watching in H1 2013. Look for them i.e HF, CFC, DTB...etc
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
the deal wrote:Basically banks with interest rate sensitive liabilities are the ones you should be watching in H1 2013. Look for them i.e HF, CFC, DTB...etc Not much headroom on Dtb. The others ok. Esp hfck. Still a buy for me. What about nbk #risky only the crocodile eater @cde dares The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
NBK FYR coming up on Monday 25th #crocodile_eater_@cde_&all_@cdes
|
|
|
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
|
mwekez@ji wrote:NBK FYR coming up on Monday 25th #crocodile_eater_@cde_&all_@cdes Sh.it hits the fan  www.nation.co.ke/busines...4/-/v5kn1fz/-/index.htmlMark 12:29
Deuteronomy 4:16
|
|
|
Wazua
»
Investor
»
Stocks
»
FULL YEAR 2012 BANKING SECTOR VALUATION
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|