wazua Wed, Mar 18, 2026
Welcome Guest Search | Active Topics | Log In

7 Pages«<4567>
CFC Stanbic Bank's splendid Q1 2013
Options
Previous Topic · Next Topic
Aguytrying
#51 Posted : Monday, June 24, 2013 3:48:54 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
mwekez@ji wrote:
VituVingiSana wrote:
Berkshire Hathaway despite sterling performances over the years & loads of cash in the bank has not paid a dividend in decades, not split its shares [there is more to this but it can be read up on], given bonuses, etc ... and it is doing a-OK... Dividends are NOT a necessary sign of a 'strong firm' but they are not all bad either.


#WORD cc @guru


The thing with dividends however small it helps shareholders to trust management, as a sign of a healthy financial position (one that has actual proof- dividends ). many firms claim they are increasing your returns by reinvesting your dividends but you don't see the returns, except in some specail cases like berkshire.
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  | | Edit by user: Monday, June 24, 2013 3:51 PM | Reason: Not specified
King G
#52 Posted : Monday, June 24, 2013 4:12:07 PM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
Aguytrying wrote:
mwekez@ji wrote:
VituVingiSana wrote:
Berkshire Hathaway despite sterling performances over the years & loads of cash in the bank has not paid a dividend in decades, not split its shares [there is more to this but it can be read up on], given bonuses, etc ... and it is doing a-OK... Dividends are NOT a necessary sign of a 'strong firm' but they are not all bad either.


#WORD cc @guru


The thing with dividends however small it helps shareholders to trust management, as a sign of a healthy financial position (one that has actual proof- dividends ). many firms claim they are increasing your returns by reinvesting your dividends but you don't see the returns, except in some specail cases like berkshire.


Centum comes to mind!!!!
Thieves
Back to top
  |
VituVingiSana
#53 Posted : Monday, June 24, 2013 11:33:43 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,344
Location: Nairobi
Aguytrying wrote:
mwekez@ji wrote:
VituVingiSana wrote:
Berkshire Hathaway despite sterling performances over the years & loads of cash in the bank has not paid a dividend in decades, not split its shares [there is more to this but it can be read up on], given bonuses, etc ... and it is doing a-OK... Dividends are NOT a necessary sign of a 'strong firm' but they are not all bad either.


#WORD cc @guru


The thing with dividends however small it helps shareholders to trust management, as a sign of a healthy financial position (one that has actual proof- dividends ). many firms claim they are increasing your returns by reinvesting your dividends but you don't see the returns, except in some specail cases like berkshire.
Bingo. What BH says is that if they feel you can do better [re-invest] with the cash than they can then they will give out dividends. The benchmark [long-term] for BH is 15% in USD.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
the deal
#54 Posted : Monday, June 24, 2013 11:58:43 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The CFC Stanbic management is just being proactive in having a conservative dividend policy...we are in an era where banking regulation is getting firmer & firmer...the new CBK prudential guidelines are an example...Bonds held for trading now rank at par in terms of risk classification as ordinary loans...I think dividends vs preserving capital for growth will become a thorny issue going forward...Banks will have to taper their dividend policies...good example is KCB...I tend to think HF should follow suit....Oh roll on H1 2013 earnings...CFC will make the other banks look ordinary...TRIPLE Digit Growth!

Ps: I like their bond book positioning!
Back to top
  | | Edit by user: Tuesday, June 25, 2013 12:01 AM | Reason: Not specified
the deal
#55 Posted : Tuesday, June 25, 2013 8:37:25 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
All local banks classified their bonds AFS & HTM over the last two years...how they did it..ask Citi...between the impact on capital ratios would have been huge with the new CBK prudential guidelines....btwn is it IFRS who is trying to ban holding bonds as AFS?
Back to top
  |
mwekez@ji
#56 Posted : Tuesday, June 25, 2013 9:51:36 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
the deal wrote:
...Bonds held for trading now rank at par in terms of risk classification as ordinary loans...


@the deal, government securities have zero % weight in risk classification (Clause 4.3, Capital Charge for Risk Weighted Assets, page 90 of CBK Prudential Guidelines). ... so, where are you manufacturing your statements?
Back to top
  |
VituVingiSana
#57 Posted : Tuesday, June 25, 2013 10:09:11 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,344
Location: Nairobi
mwekez@ji wrote:
the deal wrote:
...Bonds held for trading now rank at par in terms of risk classification as ordinary loans...

@the deal, government securities have zero % weight in risk classification (Clause 4.3, Capital Charge for Risk Weighted Assets, page 90 of CBK Prudential Guidelines). ... so, where are you manufacturing your statements?
Well @thedeal enjoys shooting from the hip Shame on you Shame on you Shame on you though in his defence he did not say if they were Corporate or Govt Securities. I agree that Corporate Securities (Bills/Bonds/CP) should be treated as loans since that is exactly what they are! A downgrade in the firms' ranking or higher corporate yields should be reflected in the Balance Sheet at a 'lower' value.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
King G
#58 Posted : Tuesday, June 25, 2013 11:09:55 AM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
Not all Bonds are Gava. Remember the way Commercial paper did in guys in the 90s! Some of these Corporate bonds have risks associated with the firm and its core business.
Thieves
Back to top
  |
mwekez@ji
#59 Posted : Tuesday, June 25, 2013 12:24:13 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
AFS are majorly government securities. In CFC, government securities are 95% of the aggregate AFS
Back to top
  | | Edit by user: Tuesday, June 25, 2013 12:33 PM | Reason: Not specified
mwekez@ji
#60 Posted : Thursday, July 11, 2013 5:44:17 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Todays top mover courtesy of foreign buys. …. we need to do away with the archaic foreigners shareholding limits in KE listed companies ;-)
Back to top
  |
7 Pages«<4567>
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.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.