KCB results not so impressive: - Page 6 - Stocks - Wazua

Welcome Guest

Wazua » Investor » Stocks » KCB results not so impressive:

KCB results not so impressive:

Options

Previous Topic · Next Topic

VituVingiSana		#51 Posted : Friday, February 26, 2010 9:46:41 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		kizee wrote: 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 Actually, 10% of 15bn = 1.5bn... Now, I wud not mind borrowing from a chap like you... as long as u calculate at 10% of 10%... LOL... Of the 15bn, not all would go to the subsidiaries... I think KCB will invest a good chunk into expanding their Kenya footprint through ATMs, etc... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		\|
User Profile

kizee		#52 Posted : Friday, February 26, 2010 10:00:56 AM
Rank: Member Joined: 1/9/2008 Posts: 537		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
Back to top		\| \| Edit by user: Friday, February 26, 2010 10:03 AM \| Reason: Not specified
User Profile

VituVingiSana		#53 Posted : Friday, February 26, 2010 10:07:29 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		kizee wrote: 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 Not as simple as that... It is NOT about lending the 15bn (or the capital) but about using that to leverage the capital structure for more deposits (thus increased lending)... For more info look up Reserve Ratio... multiple sources... just google... This topic is way too complex (or rather I am lazy) to discuss here... Please ask questions if u have them... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		\| \| Edit by user: Friday, February 26, 2010 10:09 AM \| Reason: Not specified
User Profile

Wa_ithaka		#54 Posted : Friday, February 26, 2010 11:03:09 AM
Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi		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? The Governor of Nyeri - 2017
Back to top		\|
User Profile

kizee		#55 Posted : Friday, February 26, 2010 11:19:41 AM
Rank: Member Joined: 1/9/2008 Posts: 537		wa ithaka very very well put..kcb need to buy a clue
Back to top		\|
User Profile

sheep		#56 Posted : Friday, February 26, 2010 11:28:14 AM
Rank: Veteran Joined: 7/24/2008 Posts: 781		Has everyone turned their backs on the once beloved golden child? Give the lion two or so years and it will leap again. The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
Back to top		\|
User Profile

kizee		#57 Posted : Friday, February 26, 2010 11:29:13 AM
Rank: Member Joined: 1/9/2008 Posts: 537		VituVingiSana wrote: kizee wrote: can anyone tell me how they think kcb will grow their top line? 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? 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 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! ...all these are pipe dreams! kwani other banks will just sit by and watch while kcb gets it right?kcbtz hasnt turned a profit in over 8 years of operation, what will change? the subsidairies returned a net loss of 100mio...all are in the red including the blue eyed boy of the group(read sudan)..ok except s&l which is now a dept...kcb needs a radical change...the entire board must go..the retrenchment cannot weed out anywher close to as many people need to be weeded out...the civil servants culture is already entrenched in the newer entrants...
Back to top		\|
User Profile

VituVingiSana		#58 Posted : Friday, February 26, 2010 11:59:57 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		@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... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		\| \| Edit by user: Friday, February 26, 2010 12:01 PM \| Reason: Not specified
User Profile

kizee		#59 Posted : Friday, February 26, 2010 12:25:17 PM
Rank: Member Joined: 1/9/2008 Posts: 537		kcbtz made 18mio in profits in 08!everything is factual...i challenge u to prove me wrong...kcbtz is bak in the red sudan made 90mio odd-ok not a loss really but the circumstances surrounding sudans figs are amazing(08 figure was inxs of 500mio)...all others made losses...those are facts..no fiction my man unless u can prove otherwise
Back to top		\| \| Edit by user: Friday, February 26, 2010 12:29 PM \| Reason: Not specified
User Profile

VituVingiSana		#60 Posted : Friday, February 26, 2010 12:30:36 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		kizee wrote: kcbtz made 18mio in profits in 08!everything is factual...i challenge u to prove me wrong...kcbtz is bak in the red sudan made 90mio odd...all others made losses...those are facts..no fiction mya man unless u can prove otherwise 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... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		\| \| Edit by user: Friday, February 26, 2010 12:33 PM \| Reason: Not specified
User Profile

11 Pages«<45678>»

Wazua » Investor » Stocks » KCB results not so impressive:

Forum Jump

You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Watch this topic
Print this topic

Normal
Threaded