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CFC Stanbic Bank's splendid Q1 2013
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote:They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf One then can only wonder why management cannot pay a meaningful dividend?! Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:mwekez@ji wrote:They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf One then can only wonder why management cannot pay a meaningful dividend?! Its a growth stock! Retained earnings powering the sky-scraping growth!!
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf One then can only wonder why management cannot pay a meaningful dividend?! Its a growth stock! Retained earnings powering the sky-scraping growth!! With retained earnings, who needs a rights issue? just asking as I hold a couple of them. Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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[quote=mibbz]up coming capital raising;perhaps another rights issue? do they have the thresholds required? http://www.businessdaily.../-/tyx1yhz/-/index.html[/quote] id wait for official communique, these biz daily guys can mess u up. rem kengen The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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[quote=mibbz]up coming capital raising;perhaps another rights issue? do they have the thresholds required? http://www.businessdaily.../-/tyx1yhz/-/index.html[/quote] id wait for official communique, these biz daily guys can mess u up. rem kengen The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Pesa Nane wrote:mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf One then can only wonder why management cannot pay a meaningful dividend?! Its a growth stock! Retained earnings powering the sky-scraping growth!! With retained earnings, who needs a rights issue? just asking as I hold a couple of them. This was my question... If they have capital ratios in excess then why not pay out a meaningful dividend in the last 5years!! Something doesn't add up...g Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:Pesa Nane wrote:mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:They do have the thresholds required. As at March 2013, Core capital/ total deposit liabilities; 19.2% Minimum Statutory Ratio; 8% Excess; 11.2% Core capital/ total risk weighted assets; 16.5% Minimum Statutory Ratio; 10.5% Excess; 6% Total capital/ total risk weighted assets; 20.7% Minimum Statutory Ratio; 14.5% Excess; 6.2% Liquidity Ratio; 46.3% Minimum Statutory Ratio; 20% Excess; 26.3% http://www.cfcstanbicbank.co.ke...itResults31March2013.pdf One then can only wonder why management cannot pay a meaningful dividend?! Its a growth stock! Retained earnings powering the sky-scraping growth!! With retained earnings, who needs a rights issue? just asking as I hold a couple of them. This was my question... If they have capital ratios in excess then why not pay out a meaningful dividend in the last 5years!! Something doesn't add up...g This is currently the fastest growing bank in the country. It needs lots of fuel (capital) to maintain the speed. Look at the financial statements and you will most likely ask a bonus issue for corporate action and let the bank keep the speed ahead.
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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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. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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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
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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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
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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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
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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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!
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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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?
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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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?
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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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  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
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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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
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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AFS are majorly government securities. In CFC, government securities are 95% of the aggregate AFS
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Todays top mover courtesy of foreign buys. …. we need to do away with the archaic foreigners shareholding limits in KE listed companies ;-)
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