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Housing Finance Q1 2013 PAT up 46%
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Ericsson
#21 Posted : Friday, April 26, 2013 10:35:17 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
Co-op bank is snapping like all the upcoming real estate projects.That is why HFCK is looking for additional funds to try and wane off the competition.
Co-op bank is trying to do what KCB thru S&L did;finance the estate developer and the house buyer all at the same time.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#22 Posted : Friday, April 26, 2013 10:38:11 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
Ericsson wrote:
HFCK is going to get competition from Co-op bank which is now entering the mortgage market with interest rates cheaper than HFCK.
Alos Barclays is getting back to mortgage business which it had scaled down over the past few years.
Both are doing similar models like HFCK i.e financing construction and also buyers at cheaper rates than HFCK
True but HFCK has 'institutional memory' while the newbies get their feet wet. Of course, there is always the possibility of a complete buy-out by Equity/Britam.
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Aguytrying
#23 Posted : Friday, April 26, 2013 10:45:37 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Finally we are now all singing the same song. And to imagine that less than 9 months ago this share was going for 12-14 bob.
I still see great value even at current prices. By the end of next year it should be flirting with 50's.
The investor's chief problem - and even his worst enemy - is likely to be himself
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Ericsson
#24 Posted : Friday, April 26, 2013 10:46:45 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
Possibility of a complete buy-out was ruled out by the other shareholders some time back and I don't know if the two would be interested in undertaking the venture for now.
Also for Equity their business model is mostly in the short term loans of upto 5 years since their deposit base doesn't have individual clients who have deposits in the range of billions and tens of billions but rather a high number of small savers
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#25 Posted : Friday, April 26, 2013 10:53:54 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Ericsson wrote:
Possibility of a complete buy-out was ruled out by the other shareholders some time back and I don't know if the two would be interested in undertaking the venture for now.
Also for Equity their business model is mostly in the short term loans of upto 5 years since their deposit base doesn't have individual clients who have deposits in the range of billions and tens of billions but rather a high number of small savers


@Ericsson, note Equity Bank is already holding the maximum allowed shareholding threshold in HFCK. Britam has been buying the share from market (NSE) like crazy and it is now about to also hit the maximum allowed shareholding threshold in HFCK. Their actions speak louder than words than they would willingly takeover HFCK if given the opportunity. .... on deposits, note Equity Bank is not the small boy we knew zama za kale!!!
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Ericsson
#26 Posted : Friday, April 26, 2013 11:04:32 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
@mwekez@ji Nobody said equity bank is a small boy.Get my statement correct "capacity to lend for long durations like 20 years".
The interest rate for HFCK is high as compared to barclays and co-operative bank.This is the edge and headstart the two have.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#27 Posted : Friday, April 26, 2013 11:16:22 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Ericsson wrote:
@mwekez@ji Nobody said equity bank is a small boy.Get my statement correct "capacity to lend for long durations like 20 years".
The interest rate for HFCK is high as compared to barclays and co-operative bank.This is the edge and headstart the two have.


I will say candidly that Equity Bank has the capacity to lend for long durations like 20 years. Long term lending majorly relies on external long term borrowing and i believe that Equity Bank is a big boy with big muscles to marshal such external borrowing. Besides, if HFCK is able to do it on its own, why not with the synergy that it would be having with Equity Bank. To add, even coop, s&l, bbk, cfc and other mortgage lenders have to seek external funding to address the assets liability mismatch that is created by mortgage lending.

On interest rates charged by the different mortgage lenders to their customers, give us the figures we analyse them
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VituVingiSana
#28 Posted : Friday, April 26, 2013 11:24:11 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
mwekez@ji wrote:
Ericsson wrote:
Possibility of a complete buy-out was ruled out by the other shareholders some time back and I don't know if the two would be interested in undertaking the venture for now.
Also for Equity their business model is mostly in the short term loans of upto 5 years since their deposit base doesn't have individual clients who have deposits in the range of billions and tens of billions but rather a high number of small savers


@Ericsson, note Equity Bank is already holding the maximum allowed shareholding threshold in HFCK. Britam has been buying the share from market (NSE) like crazy and it is now about to also hit the maximum allowed shareholding threshold in HFCK. Their actions speak louder than words than they would willingly takeover HFCK if given the opportunity. .... on deposits, note Equity Bank is not the small boy we knew zama za kale!!!

Equity Bank's many small savers provide 'cheap' deposits AND allow for profitable multiple transactions. As for the 'other' HFCK shareholders who are against the buy-out. At 40, Equity/Britam can have my shares... and all Equity/Britam need are 75% of the votes. At the right price (or offer for a share swap) it will happen!

Long-term lending using short-term deposits affects ALL Kenyan banks since Kenyans are not known for long-term deposits due to low rates or inflation. It takes time. As the Insurance Sector develops, I expect long-term deposits to become important.

HFCK has HUGE synergies with Britam which can offer long-term funds tied to Life Insurance policies & insurance to/for the borrowers as well.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Friday, April 26, 2013 11:27 AM | Reason: Not specified
Ericsson
#29 Posted : Friday, April 26, 2013 11:38:18 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
Co-op Bank---16.5%
Barclays bank---15.5%
KCB---16%
HFCK---18%
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mwekez@ji
#30 Posted : Friday, April 26, 2013 11:44:51 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Ericsson wrote:
Co-op Bank---16.5%
Barclays bank---15.5%
KCB---16%
HFCK---18%


On Coop, BBK, KCB, is that base rate or the effective rate coz for the HFCK it is effective rate and its revision is long overdue
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