murchr wrote:Interesting that @VVS hasn't commented yet....or are you crunching the numbers?
Can't I take a holiday?
... I saw the numbers. Healthy increase. There will be a slight decrease for I&M Holdings PAT (vs I&M Bank PAT) since there are expenses unique to I&M Holdings including:
1) Costs to (reverse takeover) acquire I&M Bank [City Trust bought I&M Bank & then changed its name to I&M Holdings].
2) Costs for running I&M Holdings e.g. directors, Co Sec, etc [I&M Bank has its own directors, etc].
3) Other misc expenses.
@Madebe - CMA folks would not know it if a crocodile bit their bums! CBK does have a Standard Reporting format for banks thus what you see is I&M Bank (Kenya) detailed Financial Statements. What we will miss will be detailed Quarterly Reports for those subsidiaries that are transferred to I&M Holdings out of I&M Bank.
The results were quite good when one considers that Mauritius made a huge 1Q 2013 loss while the 4Q 2013 for Rwanda was quite poor. Kenya was the star performer in 2013. I expect 2014 to be better since:
1) Mauritius losses (in 2013) are now history.
2) Rwanda saw 20+% gains in Deposits & Loans (2013 vs 2012) which should translate into larger Net Interest Income in 2014. The CoW will help as Kenyan businesses continue expanding into Rwanda and I am sure I&M will look for clients who need services in KE & RW,
3) Tanzania's economy will grow faster than Kenya's for the next 2 years. And I&M is positioned as a bank which wants to do business. I don't have 2013 numbers but new branches are being opened.
4) Kenya will be tough but after raising a KES 3.8bn bond as Tier 2 Capital, KE can expand its lending substantially. And they can raise another KES 6.2bn if they want to.
5) Apparently a greenfield for UG is in the works if buying a UG bank is too pricey. Note that ALL of I&M's expansion has been via acquisitions so don't rule that out.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett