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KCBGroup reports H1 PBT 2013 +19%
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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obiero wrote:@anyone. why is the share price sliding down? Apparently results are "disappointing"... Investors should learn to have longsightedness in the market! Guys who bought Simba below 25bob have no reason at all to sell... Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:"...NPL ratio up to 8.3%% from 6.2%. NPL coverage ratio down to 52.7% from 63.8%..."
When a bank does not provide for 100% of the NPLs... kuna shida! Why call for 100% NPL coverage ratio yet the factors that led to downgrading of these accounts are temporary? Most of the accounts have now started receiving regular repayments and will soon be upgraded to Normal category and NPL coverage will follow suit. Soon, NPL coverage will be >80% and NPL ratio c5%
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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sib wrote:... KCB management guides NPL level is expected to decline in 2H13 riding on reclassification of now performing loan from one large client
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Rank: Chief Joined: 1/3/2007 Posts: 18,230 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:"...NPL ratio up to 8.3%% from 6.2%. NPL coverage ratio down to 52.7% from 63.8%..."
When a bank does not provide for 100% of the NPLs... kuna shida! Why call for 100% NPL coverage ratio yet the factors that led to downgrading of these accounts are temporary? Most of the accounts have now started receiving regular repayments and will soon be upgraded to Normal category and NPL coverage will follow suit. Soon, NPL coverage will be >80% and NPL ratio c5% I agree. I assume KCB delayed the announcement until the (defaulting) client agreed to repayments. Which client I wonder? A listed firm? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 2/8/2007 Posts: 808
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@VVS - which listed firm is this? meanwhile @ guru these are interim results. Ponder this co-op bank with a provision of 500,000,000. What are the odds of this happening, reminds me of balancing figure in models. Memba is yet to provide for Jetlink 1B+ debt and Kanjo's balance of the 5B. KCB has an ugly construction related book...I reckon if KCB, memba and Co-op were subjecting to more rigorous reporting as Stanchart, BBK and Citi are there would have been no growth if 1H2013.
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Rank: Elder Joined: 6/23/2009 Posts: 13,814 Location: nairobi
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Kausha wrote:@VVS - which listed firm is this? meanwhile @ guru these are interim results. Ponder this co-op bank with a provision of 500,000,000. What are the odds of this happening, reminds me of balancing figure in models. Memba is yet to provide for Jetlink 1B+ debt and Kanjo's balance of the 5B. KCB has an ugly construction related book...I reckon if KCB, memba and Co-op were subjecting to more rigorous reporting as Stanchart, BBK and Citi are there would have been no growth if 1H2013. You are onto something. I thank you, deal and similar minds for havin an analytical eye
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 684,200 ABP 6.72; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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obiero wrote:Kausha wrote:@VVS - which listed firm is this? meanwhile @ guru these are interim results. Ponder this co-op bank with a provision of 500,000,000. What are the odds of this happening, reminds me of balancing figure in models. Memba is yet to provide for Jetlink 1B+ debt and Kanjo's balance of the 5B. KCB has an ugly construction related book...I reckon if KCB, memba and Co-op were subjecting to more rigorous reporting as Stanchart, BBK and Citi are there would have been no growth if 1H2013. You are onto something. I thank you, deal and similar minds for havin an analytical eye LQTM ... Someone just got convinced that those debt are irrecoverable and should be specifically written off. @Kausha, @the deal who thinks these banks are a shylock, keep it on. you may just get these counters to super discount levels for us 
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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KCB’s foreign subsidiaries outpace Equity banksKCB foreign subsidiaries outperformed Equity Bank’s in the six months to June helped by increased income from transactions. The bank’s network of regional branches reported a 80 per cent increase in net profit to Sh879 million in the six months to June while that of Equity Bank and business lines dropped to Sh144 million compared to Sh348 million in the period under review. KCB, which is Kenya’s largest bank by assets, operates in Tanzania, Rwanda, Uganda, South Sudan and Burundi while Equity has a presence in the foreign markets save for Burundi. Both banks recorded gains in lending income from the subsidiaries, but KCB outpaced Equity in earnings from transaction incomes such as ATM charges, over-the-counter withdrawals.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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^KCB says once the performance of existing subsidiaries was consolidated, it would also look to Somalia and Djibouti.
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Rank: Chief Joined: 1/3/2007 Posts: 18,230 Location: Nairobi
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@Kausha - I was wondering aloud if the defaulting firm was listed. I wonder if KCB lent significant sums to KK. Of course, I think KK is back in the black now. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:KCB’s foreign subsidiaries outpace Equity banksKCB foreign subsidiaries outperformed Equity Bank’s in the six months to June helped by increased income from transactions. The bank’s network of regional branches reported a 80 per cent increase in net profit to Sh879 million in the six months to June while that of Equity Bank and business lines dropped to Sh144 million compared to Sh348 million in the period under review. KCB, which is Kenya’s largest bank by assets, operates in Tanzania, Rwanda, Uganda, South Sudan and Burundi while Equity has a presence in the foreign markets save for Burundi. Both banks recorded gains in lending income from the subsidiaries, but KCB outpaced Equity in earnings from transaction incomes such as ATM charges, over-the-counter withdrawals. I spotted it on results release and got surprised. I decamped from simba to member this year expecting simba to drag a bit, but simba might prove me wrong...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Industry woes aside (NPLs), KCB is improving drastically operations wise. Let's give credit where it's due & move on  <awesome Contrarian play, no regrets whatsoever!>
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Rank: Member Joined: 2/8/2007 Posts: 808
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If KCB doesn't lend 20+B in the second half, there will be a sizeable earnings decline, unless they kick their base rates upwards. I am not so sure about their liability endowment.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Kausha wrote:If KCB doesn't lend 20+B in the second half, there will be a sizeable earnings decline, unless they kick their base rates upwards. I am not so sure about their liability endowment. We are likely to get a mix of both. 10+B lending plus a kick in their base rate in line with market rates. Cost containment will also continue to benefit bottomline
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Rank: Member Joined: 2/8/2007 Posts: 808
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@VVS is the listed firm Africa digz company...
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Rank: Chief Joined: 1/3/2007 Posts: 18,230 Location: Nairobi
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Kausha wrote:@VVS is the listed firm Africa digz company... I have NO idea. And which is the "Africa digz company" I am no good at puzzles of this sort! I assume KCB will be OK if a repayment plan has been agreed upon BUT if there is any delay then it will have to be highlighted in the audited accounts for 2013 which means KCB has 7 months to fix the problem before it has to be reported. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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guru267 wrote:obiero wrote:@anyone. why is the share price sliding down? Apparently results are "disappointing"... Investors should learn to have longsightedness in the market! Guys who bought Simba below 25bob have no reason at all to sell... I have had a long history with Simba from the time of its rights issue at 17/= when the future looked so bright I bought more at 23.5 and sold out at 39 only remaining with a nominal 1000 shares for sentimental value. Simba should come back to 33 and below I don't see any value at current prices
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Rank: Veteran Joined: 6/17/2009 Posts: 1,622
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obiero wrote:@anyone. why is the share price sliding down? A very resilient lion,right back to 45.Folk who took advantage of the correction making a quick 4% net of commissions.
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KCBGroup reports H1 PBT 2013 +19%
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