Wazua
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Standard Chartered
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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PBT +42.5% Final div Kshs 7... Not bad... Uchumi half year also posted and looking good. www.nse.co.ke
BBI will solve it :)
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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Not bad? Those are excellent results. Pity the price is already full... The Governor of Nyeri - 2017
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Rank: Member Joined: 10/18/2007 Posts: 217
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Standard Chartered seem to work(make profits ) for investors while other banks work(make profits ) for directors.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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wote wrote:Standard Chartered seem to work(make profits ) for investors while other banks work(make profits ) for directors. Why are you holding SCBK to a different standard v KPLC re: profits... BTW, the ROA of SCBK is huge compared to KPLC... If only KPLC was allowed the same ROA... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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As a BANK these are crap results! 42% rise in PBT while the economy grows by 2.5% from a bank that did not grow its loan book is laughable. Ati 89% increase in government securities. The bank is clearly abusing its licence as a bank and abdicating its public responsibility to lend to the businesses. It must decide whether it is a BANK, a government financier or an investment company. Hail Equity, kcb, bbk and others Life is short. Live passionately.
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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@sparkly gotta hand it to you - interesting perspective. Glad that there's diversity in the banking sector or consumers might be doomed.
But was it a 22% increase in total operating income; shareholders may not share your view...
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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good point sparkly. As much as I am happy infrustructure bond funds as an example are being used in the commendable revamping of Kenya's infrustructure for the benefit of all...its time some form of govt incentives/benefits accrued to 'local' banking institutions which seem to have focused largely on spurring lending to mwananchi or wanjiku friendly organisations...CBK monetary actions should not be used for abuse...
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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sparkly wrote:As a BANK these are crap results! 42% rise in PBT while the economy grows by 2.5% from a bank that did not grow its loan book is laughable. Ati 89% increase in government securities. The bank is clearly abusing its licence as a bank and abdicating its public responsibility to lend to the businesses. It must decide whether it is a BANK, a government financier or an investment company. Hail Equity, kcb, bbk and others Nonsense... you are going on a rant that makes little sense! SCBK is there to make money for its shareholders NOT do 'public good' for free... There is no 'public responsibility' except safeguarding its depositors & shareholders. Investing is AAA (by Kenya standards) GoK bonds is definitely safe for depositors. What is the point of lending at 15% (with risks) when GoK pays you risk-free 13.5%? And with minimal staff needed...? If you feel SCBK is 'abusing' it's banking license then start your own bank... Kenyans have 43 banks to choose from so there is no 'abuse' coz there is no monopoly... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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@ecstasy - Puhleeze! CBK needs to be smart about monetary tools... Ultimately, it is our shitty government that spends money like water on RECURRENT expenses... If GoK pays 13%, why shudn't SCBK take advantage? They are NOT stealing like ruto, kibaki, ongeri & friends... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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sparkly wrote: It must decide whether it is a BANK, a government financier or an investment company. Hail Equity, kcb, bbk and others And you're annoyed because? I honestly doubt the bank's shareholders will mind. As vvs correctly put it - the thugs are akina Raila and Ruto not the banks...
BBI will solve it :)
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Rank: New-farer Joined: 1/10/2010 Posts: 73 Location: kenya
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Just a thought.
Whose money are they using to buy government securities - is it not the depositors money?
What interest rate do depositors get on their savings with the same banks?
If they were to borrow from the same banks, at what interest rate would the banks lend to their own depositors(customers)?
At this rate will they be in business for long if they neglect their core business? Are they colluding with the government?
Every shareholder is concerned with the future of his investment and also remember share holders also have bank accounts and at the end of the day a big chunk of that dividend(if not the retained earnings) will sail electronically to some foreign land far away.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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@muganda and @2012 am sure that the shareholders are happy with the increase. I am not sure for how long this ultra conservative mode of doing business will please them. It doesn't take a genius to achieve those results, NBK does it effortlessly. Heck am sure NBK will report a better performance. @VVS SCB is going back the old way when multinationals retrenched, closed branches and accounts to save on costs, charged crazy ledger fees on the remaining customers, pumped deposits into T-bills and repatriated all the profit. Happily that era allowed the likes of co-op, EB and family to come up. if all banks were to behave like SCB, businesses and consumers would starve of finances. @chaliwong 10 marks to you! Life is short. Live passionately.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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@sparkly I have no idea what you are on about but I think you need to separate patriotism and investment. The latter is cold, just business. I will never bank with Equity for reasons of crowds, but it accounts for nearly 20% of my portfolio, for which I'm very happy. Ditto SCB.
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Rank: Veteran Joined: 9/4/2009 Posts: 700 Location: Nairobi
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@sparky. There's a huge interest rate risk that this could all blow up for stan chart, even Barclays when interest rates reverse, like in 2004 so you've gotta point...but SCBK income stream now is less dependent on govt bonds (ratio is 32/60 govt bonds income/normal loans income vs 47/36 in 2003) and CBK policy is easier to predict (low interest rate regime). They can keep their cost base low with this strategy...if you have only 35 branches (opening 1 branch per year) you pretty much don't care about ordinary consumers. They are more than capable of lending to both govt and ordinary customers as long as they have support from mother SCBK Holdings (which they have)...they also have a niche clientele (KEnGen/KPLc,etc), so who are they disappointing? SCBK have the best treasury (bond) dep in Kenya...what's interesting is the new licenses being issued that will enable banks to trade bonds on the secondary market directly...SCBK will benefit greatly from that. @chali...banks do not lend depositors money...they create deposits when they make loans. “We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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Rank: New-farer Joined: 1/10/2010 Posts: 73 Location: kenya
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My friend scubi; what do you mean that banks don't lend depositors money?
For banks to grow their Assets they have to grow their Liabilities respectively.
Otherwise if they had their own money to lend, then why ask you to bank with them? They would rather be Shy-locking.
Remember there is a cost on deposits(cost of money)which they would not incur if they had their own money to lend.
What banks lend is borrowed.
BBK was in the market recently with a Bond when CBK intervened because they were growing their Asset book faster than their Liabilities book.
KCB is coming soon.
So at the end of the day its still your money.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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And the size of the customers deposits limits how much they can lend.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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@GG i don't know why you refuse to see my point. I will make one last effort... In a money economy, economic growth is reliant on the efficient allocation of capital. Direct allocation-where a company goes to the market and raises money by IPO, rights issue,corporate bond etc. Indirect-where a bank bridges the gap btwn the capital owners (savers or depositors) and the capital users (businesses). A bank makes money by lending at a higher interest rate than offered to the depositors (the spread). Now, if the banks decides not to play their role ... Kakuzi will not be able to access long term or short term funds to buy that farm or finance their working capital needs! What then happens to your investment in kakuzi? Just an example, now extrapolate to all sectors of the economy, all sizes of businesses. And that my friend is the nature of banking and why it is highly regulated... Tafakari hayo Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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@chaliwong - It is simple... DEPOSITORS have a CHOICE... BORROWERS have a CHOICE... there are 42 (not 4 but 42 OTHER banks in Kenya)... If the deposit rate is too low... go elsewhere... if SCBK lending rate is too high... go elsewhere... Kwani, SCBK has a gun to your head??? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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chaliwong wrote:
BBK was in the market recently with a Bond when CBK intervened because they were growing their Asset book faster than their Liabilities book.
KCB is coming soon. So at the end of the day its still your money.
A few years ago idiots at CBK refused BBK to raise a bond. Stupid idiots influenced by politically connected stockbrokers. CHOICE is important... In the past, the idiots forced government firms to use 'government' banks even though they were lousy... but as private citizens we have a choice! I like EB as an investment... but I ain't standing in lines... so I chose I&M Bank (I ditched CFC Stanbic) for its flexibility & service... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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@sparkly - SCBK is not longer the behemoth (#2 bank in assets) it was once... KCB has become larger than SCBK (even BBK in assets) since 2003. At the growth rate of Equity Co-op, I expect in 2-3 years they will be larger than SCBK... So as Kenyans we can choose where to deposit or borrow money... Let SCBK do what they do best... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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