KCB is like an A student bringing home a C+ report.
The rights issue is needed because the capital adequacy is at 14.9%. KCB is taking a lot of deposits so it needs to expand its capital base to satisfy the CBK requirements.
It's a buy, buy for me. The west africans supported UBA and Ecobank let's do the same.

can anyone tell me how they think kcb will grow their top line? in 09 they really tightend their belts and cut costs....decided to do a retrenchment in 2010...so once all this is done where do u guys see the growth come in? what is kcb doing different to justify a higher return? btw issuing a note adds an interest cost element to the p&l that didnt exist prior...a 15 yr note at a conservative 10pct means an extra cost of 150mio a year in interest...so the subsidiaries invested in wud need to make at least 150mio per year to justify the investment...at the moment subs are makin a net loss of 100mio with no clear indication of a change in fortunes...i wudnt touch kcb with a ten trillion foot pole at the moment

@vvs. So ABSA is not the agent for Barclays Bank Plc…BBK management is autonomous? Most multinationals are running things from SA.

I wonder why most people think KCB can grow it’s top-line, its loans in 2009 were more than SCBK and BBK combined…their loan history speaks volumes…19 bn loaned in 2007…29 bn in 2008…27 bn in 2009…is this growth suddenly going to disappear this year (during expected 4% GDP growth) and head straight for Equity, SCBK and BBK…restructuring is at on full swing, inflation is low and expansion is through, MD said so himself, so expenses ratios will not be significantly higher…

btw did you guys notice insider loans…that’s something worrying me, almost reaching 18% of net loan book…who are these shareholders borrowings massive loans?

I like the analogy!

As for support... I was badly chomeka'd during the last Rights @25... so to be honest I am out of cash...

As for 'support'... invest in the best not based on nationality... I will have to decide whether my money will make me more money in KCB or other stocks...

Today, I am moving into KPLC... I see better growth for my cash there... [And I can be patriotic tho that is secondary!]

Good questions:
- Can anyone tell me how they think kcb will grow their top line?
Well, I think the loan growth will translate into higher earnings as long as KCB keeps bad debts down & maintains/expands NIM. Growth will come from the CORE business of lending. The rest (forex income, commissions) are all icing...
- The retrenchment is about 'rightsizing'... OK, I dont like to use these terms but KCB needs savvier/knowledgeable/friendlier employeess not the civil service wazee...
- I see KCB pushing for more slef-service options like ATMs & online banking
- what is kcb doing different to justify a higher return?
No idea! Yet... waiting for AGM
- KCB hopes Rw, Ug Tz become profitable in 2010. Sometimes it takes time to build up a brand.

Example: KenolKobil slowly built up its regional business by acquisitions & as new entrants. Ethiopia (80+ stations) still loses cash (or makes very little) but the expectations are high. After 7 years, KK's regional subsidiaries (current) ROI has exceeded Kenya!

LOL VVS 1.5BN IS EVEN MORE PRICEY FWIW...in any case wat glorious investments will kcb make that will yield a return of above 10 perecent year on year..which returns they did not invest in during the FY 2009

NSE badly needs shareholder activism.
What is Ksh15bn going to be spent on that is going generate returns of around 12% (or whatever t-bills) are now? Why is it paying out Ksh2.2bn in dividends at the sametime as asking for Ksh15bn?

Has everyone turned their backs on the once beloved golden child? Give the lion two or so years and it will leap again.

@kizee - Wacha complaining bila facts! LOL...
Or state what is fact & opinion

- KCB TZ made a profit in 2008. See the annual report.
- Where did u get that Sudan made a loss?

No-one is saying KCB will make it right... we have no idea... And no-one (esp Equity) is going to wait around for KCB to get their act in order...

For me... it will boil down to numbers... There are many fish in the sea...

I am not challenging you... LOL... I just pointed out the untruths (I do not want to call them lies) you were peddling...

There were only 2 items I pointed out coz those were 'facts' as provided by KCB... unless they lied!

I am not disputing your opinions... everyone has one... sometimes more than one...As I said before, there is a distinction...