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Banking Sector Valuation and Recommendation - Year 2013
mwekez@ji
#61 Posted : Sunday, July 07, 2013 8:16:32 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
@VVS, I&M staff costs and other operating expenses are soaring faster than incomes. SIB suspected that the Rwandan operation that were acquired in 1H12 is where exceptional business integration costs were incurred. Will be watching how this turns out in 1H13. On the bright side, I&M still boasts of the lowest CTI (Cost To Income) ratio across our universe of 11 listed banks.
mwekez@ji
#62 Posted : Sunday, July 07, 2013 10:28:40 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
CBK puts big banks on the spot over high interest rates

Kenya’s large banks are charging the highest interest on loans even as they retain depositors on small payouts.

A new Central Bank of Kenya (CBK) report shows the six top banks are squeezing borrowers while using their dominance in the skewed market to pay less for deposits.

The 10th report of CBK’s Monetary Policy Committee shows that the influential financiers enjoy an average interest spread of 15.3 per cent compared to 11 per cent for the small banks. Interest spread is the difference between the price at which a bank offers a loan and the cost it paid for the deposits used for lending.

Effectively, the big lenders are raking in nearly 40 per cent more in profit margins than their smaller competitors.
mwekez@ji
#63 Posted : Sunday, July 07, 2013 10:48:38 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Gulf Bank pegs listing plan on IFC exit

Gulf African Bank has tied its public listing plans to the exit of International Finance Corporation (IFC) from its shareholders’ roll.

The lender is 15 per cent owned by IFC, the World Bank’s private sector lending arm.

IFC bought a 15 per cent stake in the bank for $5 million (Sh430 million) last year, which valued it at about $33.33 million (Sh2.86 billion) at the time.

Chief executive of Gulf Bank Abdalla Abdulkhalik said IFC plans to exit through a public share sale.

“What they are looking at is that this (Gulf African Bank) will go into an initial public offering (IPO) and become a public company and therefore they (IFC) will be bought out by the normal mwananchi,” said Mr Abdulkhalik at the Islamic Finance Conference held in Mombasa last week without however giving time lines.The IPO, which could be a first for a Shariah-compliant bank, is also expected to raise additional capital for the lender. “We have not set a timeframe yet but at some point Gulf African Bank would like to go public,” said Mr Abdulkhalik.

IFC’s policy is to invest in firms for between five and seven years .Before IFC’s equity investment, Gulf Bank was owned by Istithmar World which had a 32 per cent stake, Government of Dubai sovereign fund and alternative investment BMI Bank BSC with a 21.3 per cent stake, Saudi Arabia-based investor Abdullah Mohammed Al Romaizan (21.3 per cent), Gulf Cap Group, a Dubai-based firm (10.3 per cent) and PTA Bank (5.3 per cent).

Going by the IFC’s investment horizon the public could get a chance to buy into the lender by 2017.
VituVingiSana
#64 Posted : Monday, July 08, 2013 6:57:49 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
mwekez@ji wrote:
CBK puts big banks on the spot over high interest rates

Kenya’s large banks are charging the highest interest on loans even as they retain depositors on small payouts.

A new Central Bank of Kenya (CBK) report shows the six top banks are squeezing borrowers while using their dominance in the skewed market to pay less for deposits.

The 10th report of CBK’s Monetary Policy Committee shows that the influential financiers enjoy an average interest spread of 15.3 per cent compared to 11 per cent for the small banks. Interest spread is the difference between the price at which a bank offers a loan and the cost it paid for the deposits used for lending.

Effectively, the big lenders are raking in nearly 40 per cent more in profit margins than their smaller competitors.
I don't understand why Savers prefer the Large Banks vs the mid-sized banks. I understand savers may be uncomfortable with small banks after the collapses in the 80s & 90s but the mid-tier banks seem OK like I&M, DTB & NIC. They pay higher rates & have better service.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
streetwise
#65 Posted : Monday, July 08, 2013 10:33:17 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
Looks like a bull in the offing
mkeiyd
#66 Posted : Monday, July 08, 2013 11:02:26 AM
Rank: Veteran

Joined: 3/26/2012
Posts: 1,182
VituVingiSana wrote:
I don't understand why Savers prefer the Large Banks vs the mid-sized banks. I understand savers may be uncomfortable with small banks after the collapses in the 80s & 90s but the mid-tier banks seem OK like I&M, DTB & NIC. They pay higher rates & have better service.


Small banks' reach is quit inconveniencing.
mwekez@ji
#67 Posted : Monday, July 08, 2013 5:18:54 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
streetwise wrote:
Looks like a bull in the offing


Rich Today wrote:

Big Cap Banking Counters were strong today with Equity Bank +3.906%, Barclays Bank +3.21%,KCB +2.61%.

The Big Cap Banking Stocks rebounded strongly as Buyers looked for Supply. The Big Banks are an outstanding GDP Proxy and I see EAC [and Kenya] GDP accelerating.

youcan'tstopusnow
#68 Posted : Friday, July 19, 2013 1:01:36 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
maka wrote:
July 18 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2000 GMT on Thursday:
** Nigeria's Guaranty Trust Bank saidit has reached an agreement to
acquire a 70 percent stake in Kenya's Fina Bank Limited for $100 million.


#Mergers+Acquisitions in full force in Kenya. Kazi iendelee.
GOD BLESS YOUR LIFE
mibbz
#69 Posted : Friday, July 19, 2013 1:07:19 PM
Rank: Member

Joined: 2/18/2011
Posts: 448
@ Mwekezaji it has come to be

CCTV Africa ‏@cctvnewsafrica 30m
#Nigeria's Guaranty Trust Bank has reached an agreement to acquire a 70 percent stake in #Kenya's Fina Bank Limited for 100 million dollars.
Retweeted by coldtusker
Expand
mwekez@ji
#70 Posted : Friday, July 19, 2013 1:14:31 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
mibbz wrote:
@ Mwekezaji it has come to be

CCTV Africa ‏@cctvnewsafrica 30m
#Nigeria's Guaranty Trust Bank has reached an agreement to acquire a 70 percent stake in #Kenya's Fina Bank Limited for 100 million dollars.
Retweeted by coldtusker
Expand


smile Kenya Hoiye!!! #Many_More_Deals_Coming
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