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NIC Q1 2015 Results
mwekez@ji
#1 Posted : Thursday, May 07, 2015 12:11:06 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
Operating profit up 23% but PAT flat courtesy of huge spike in loan loss provision

Link http://ge.tt/5PHLytF2/v/0
hisah
#2 Posted : Thursday, May 07, 2015 3:31:01 AM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
Banking sector profit slows down in Q1

Financials have led the NSE in reverse as I have expected. The econ slump started in Q4 2014. High deposit rates coming back as well as NPL bulge increasing. Watch that KES and inflation. CBR hike starts to look real as CBK turns defensive in an econ slump period?! That will suck and hurt risky assets.

That article also states that banks expect NPLs to spike in four sectors - tourism, real estate, transport & communication and personal. And someone is presenting a 2 trillion budget! Who will foot that bill in such an econ environment? Pipe dream.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Gatheuzi
#3 Posted : Thursday, May 07, 2015 7:28:30 AM
Rank: Veteran


Joined: 8/16/2009
Posts: 994
A very tough year indeed. In my view most banks will report lower profits by full year. As far as NPLs are concerned, the intrerest rates have been so high for a long time. That is what helped banks to sustain double digit growth for almost 10yrs!

Moving forward the businesses and individuals loaned to can no longer sustain these high rates thus the default. What might save banks is the expected interest rate hike. However that increases the default risk leading to even higher NPLs.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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