Wazua
»
Investor
»
Stocks
»
EQUITY vs KCB
Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
|
The anti banking pressure will keep the lenders on theirs toes to reflect the true financial positions. Otherwise financials stocks wanna be overpriced by reducing provision for bad debts immensely thereby ballooning EPS . This overcast of EPS will trigger upthrust coz demand will surpass the supply. IMF once warned banks on this scenario of cooking books. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
|
hisah wrote:Ericsson wrote:With the current appreciation trend of KCB share price;pension schemes including NSSF will make very handsome returns in their portfolio.
KCB is the favourite stock and with the largest percentage in the quoted equity portfolio as per RBA June 2014 report Any fund manager with a large financial sector exposure in their portfolio is likely in the red this year.
For now I'm not willing to touch or recommend any banking stock until treasury and cbk start reading from the same page. The interest rate lawsuit is another key event. Is judiciary becoming banker intolerant like what happened in the 1930s to US banks? Social mood is currently cranking anti bank sentiments. Caution is this environment for some banks will be thrown under the bus. The next stage will likely be KES devaluation as anti bank sentiment swiftly moves to politics. Bond holders will hate this cycle as losses escalate especially if politicians force through lending rate control laws. Sell buy-back bond market activity will be nasty for those with bad exposure.
This environment is not similar to 2011 and the new cbk head will want to drive a point home to rogue bankers.
In summary banks are facing a tough cbk head, intolerant judiciary and anti bank civil mood. Very nasty cocktail. Keep this in mind while you analyze banking stocks. Very good points. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
This IMF that is warning banks about cooking books is it the same one that encourages nations to cook their GDP figures and state of the economy they take more loans and result is financial crisis,bankruptcy,painful austerity measures like pension cuts. Case in point Ukraine,Greece,Argentina in the early 2000,Mexico,Indonesia during the Asian financial crisis in 1997. Now even Kenya Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
|
Ericsson wrote:This IMF that is warning banks about cooking books is it the same one that encourages nations to cook their GDP figures and state of the economy they take more loans and result is financial crisis,bankruptcy,painful austerity measures like pension cuts.
Case in point Ukraine,Greece,Argentina in the early 2000,Mexico,Indonesia during the Asian financial crisis in 1997.
Now even Kenya The key word you have used is enocourage. We are never forced by IMF.. Meanwhile, I was at the exchange bar yesterday and word is that the Opus Dei man is incorruptible.. Even big bribes dont shake his faith.. A stickler for rules. Fishy banks wont swim in this new CBK waters, but Imperial will reopen on 16.11.2015
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Chief Joined: 8/4/2010 Posts: 8,977
|
VituVingiSana wrote:hisah wrote:Ericsson wrote:With the current appreciation trend of KCB share price;pension schemes including NSSF will make very handsome returns in their portfolio.
KCB is the favourite stock and with the largest percentage in the quoted equity portfolio as per RBA June 2014 report Any fund manager with a large financial sector exposure in their portfolio is likely in the red this year.
For now I'm not willing to touch or recommend any banking stock until treasury and cbk start reading from the same page. The interest rate lawsuit is another key event. Is judiciary becoming banker intolerant like what happened in the 1930s to US banks? Social mood is currently cranking anti bank sentiments. Caution is this environment for some banks will be thrown under the bus. The next stage will likely be KES devaluation as anti bank sentiment swiftly moves to politics. Bond holders will hate this cycle as losses escalate especially if politicians force through lending rate control laws. Sell buy-back bond market activity will be nasty for those with bad exposure.
This environment is not similar to 2011 and the new cbk head will want to drive a point home to rogue bankers.
In summary banks are facing a tough cbk head, intolerant judiciary and anti bank civil mood. Very nasty cocktail. Keep this in mind while you analyze banking stocks. Very good points. Well, that didn't take long. This anti bank social mood is bound to get muscular as political fever escalates towards election.
Midiwo to push Bill to put limit on interest rates
@obiero good to know that exchange bar patrons are worried about the new cbk head. Rogue bankers' time is up! Banker suicides coming up. @young had stated a while back before leaving investing at NSE that kenyan banks faced the nigerian 2009 bank clean up event. I think we're just warming up. 2016 is when the chips start falling into place.
@ericsson imf & wb modus operandi is debt enslavement of nations since the 70s.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
|
|
|
Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
|
obiero wrote:Ericsson wrote:This IMF that is warning banks about cooking books is it the same one that encourages nations to cook their GDP figures and state of the economy they take more loans and result is financial crisis,bankruptcy,painful austerity measures like pension cuts.
Case in point Ukraine,Greece,Argentina in the early 2000,Mexico,Indonesia during the Asian financial crisis in 1997.
Now even Kenya The key word you have used is enocourage. We are never forced by IMF.. Meanwhile, I was at the exchange bar yesterday and word is that the Opus Dei man is incorruptible.. Even big bribes dont shake his faith.. A stickler for rules. Fishy banks wont swim in this new CBK waters, but Imperial will reopen on 16.11.2015 And some dude was asking him why he isn't married. From the word go I said I like this guy.we need such leaders .let nothing pass under his watch .
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
|
VituVingiSana wrote:@watesh - Why did Equity's costs increase vs KCB? Equitel? Equity had a huge IT cost to upgrade banking systems and integrate Equitel around 2.6bn then also expect Equitel marketing costs of arnd 2bn
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
|
watesh wrote:Here are some stats I did on KCB Q3 vs Equity Q3 for stats junkies like me
Pretax profit
KCB-19.4bn
Equity-18.1bn
PAT
KCB-13.577bn
Equity-12.81bn
BREAKDOWN:
Assets
KCB-607bn
Equity-446bn
Deposits
KCB-471bn(+121bn)
Equity-317bn(+73bn)
Net Loans and advances
KCB-348bn(+84bn)
Equity-263(+55bn)
Net Interest Income
KCB-28.35bn(+2.57bn)
Equity-26.81bn(+4bn)
Non funded income
KCB-17.334bn(+0.4bn)
Equity-16.81(+3.7bn)
Costs
KCB-26.297bn(+1.25bn)
Equity-24.18bn(+5.289bn)
Subsidiaries (KCB are estimates)
Kenya
KCB-17.07bn
Equity-15.9bn
Uganda
KCB-0.19bn
Equity-0.21bn
Tanzania
KCB-0.19bn
Equity-0.27bn
Rwanda
KCB-0.388bn
Equity-0.32bn
South Sudan
KCB-1.6bn
Equity-0.7bn
DRC Equity-0.44bn
Burundi KCB less than or approx 0.01bn
Made a change on a typing error i did on Equity net interest income
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
|
hisah wrote:VituVingiSana wrote:hisah wrote:Ericsson wrote:With the current appreciation trend of KCB share price;pension schemes including NSSF will make very handsome returns in their portfolio.
KCB is the favourite stock and with the largest percentage in the quoted equity portfolio as per RBA June 2014 report Any fund manager with a large financial sector exposure in their portfolio is likely in the red this year.
For now I'm not willing to touch or recommend any banking stock until treasury and cbk start reading from the same page. The interest rate lawsuit is another key event. Is judiciary becoming banker intolerant like what happened in the 1930s to US banks? Social mood is currently cranking anti bank sentiments. Caution is this environment for some banks will be thrown under the bus. The next stage will likely be KES devaluation as anti bank sentiment swiftly moves to politics. Bond holders will hate this cycle as losses escalate especially if politicians force through lending rate control laws. Sell buy-back bond market activity will be nasty for those with bad exposure.
This environment is not similar to 2011 and the new cbk head will want to drive a point home to rogue bankers.
In summary banks are facing a tough cbk head, intolerant judiciary and anti bank civil mood. Very nasty cocktail. Keep this in mind while you analyze banking stocks. Very good points. Well, that didn't take long. This anti bank social mood is bound to get muscular as political fever escalates towards election.
Midiwo to push Bill to put limit on interest rates
@obiero good to know that exchange bar patrons are worried about the new cbk head. Rogue bankers' time is up! Banker suicides coming up. @young had stated a while back before leaving investing at NSE that kenyan banks faced the nigerian 2009 bank clean up event. I think we're just warming up. 2016 is when the chips start falling into place.
@ericsson imf & wb modus operandi is debt enslavement of nations since the 70s.
If an interest rate control bill goes through, pple will be back to begging for loans instead of banks begging pple to take loans
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,455
|
watesh wrote:
If an interest rate control bill goes through, pple will be back to begging for loans instead of banks begging pple to take loans
That is why I keep saying the level of idiocy in this country is mind boggling!!! With all the risks and costs associated with lending to individuals, why would a bank want to lend to individuals at such low margins??? All the money/loans would end up going to the government and companies (the bigger the better). Companies would no longer need to source foreign loans. It would be the raiya trying to do that! Good luck with that!!! And we are trying to make Nairobi a Financial Hub??? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
|
obiero wrote:Ericsson wrote:This IMF that is warning banks about cooking books is it the same one that encourages nations to cook their GDP figures and state of the economy they take more loans and result is financial crisis,bankruptcy,painful austerity measures like pension cuts.
Case in point Ukraine,Greece,Argentina in the early 2000,Mexico,Indonesia during the Asian financial crisis in 1997.
Now even Kenya The key word you have used is enocourage. We are never forced by IMF.. Meanwhile, I was at the exchange bar yesterday and word is that the Opus Dei man is incorruptible.. Even big bribes dont shake his faith.. A stickler for rules. Fishy banks wont swim in this new CBK waters, but Imperial will reopen on 16.11.2015 We need more Opus Dei members in key positions. PNN wasn't interested in 'money' but service. Who remembers those stupid questions from the greedy & vile MPigs? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
|
MaichBlack wrote:watesh wrote:
If an interest rate control bill goes through, pple will be back to begging for loans instead of banks begging pple to take loans
That is why I keep saying the level of idiocy in this country is mind boggling!!! With all the risks and costs associated with lending to individuals, why would a bank want to lend to individuals at such low margins??? All the money/loans would end up going to the government and companies (the bigger the better). Companies would no longer need to source foreign loans. It would be the raiya trying to do that! Good luck with that!!! And we are trying to make Nairobi a Financial Hub??? Equity doesn't lend much in South Sudan. Equity's loans are made to firms with Kenyan operations & collateral not loans that are subject to SS laws & judiciary. Equity takes deposits though! It is primarily a 'transaction bank'. That's what the Midiwo bill will do. Banks will take deposits. Banks will 'invest' in T-Bills. Loans will be a no-no unless you are known to the bank or give the bank a lot of transactional business. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
What is interest rate control really? Is that proposal saying that KBRR is already ineffective? Huh?? Quote:The proposal, seen by Sunday Nation, also inserts a clause to have the minimum interest rate that a bank or a financial institution shall pay on deposits held in interest earning accounts shall be set at least 70 per cent in the minimum. How will any such control control variables of supply & demand side shocks? This is just the OMC pricing route. The only thing that can be 'tamed' is margins. Effectively, that means more ICT processes from banks. Major V.E.Rs, redundancy coming up and regional expansion. Banking is certainly not a sector to grow us wealth.
|
|
|
Rank: Member Joined: 5/30/2016 Posts: 217 Location: Talai
|
KWANI THEY HAVE AGREED ON A SUPPLY TREND.. BOTH DOING JUST OVER 52 MILLION SUPPY AGAINST ZERO (0) DEMAND BOTH HAVE DONE A SUPPLY OF 30500 SHARES TO TIME! Watch and Listen and Live
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
|
ARAP CHARLES wrote:KWANI THEY HAVE AGREED ON A SUPPLY TREND.. BOTH DOING JUST OVER 52 MILLION SUPPY AGAINST ZERO (0) DEMAND BOTH HAVE DONE A SUPPLY OF 30500 SHARES TO TIME! They should callme when they hit 15! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
|
Impunity wrote:ARAP CHARLES wrote:KWANI THEY HAVE AGREED ON A SUPPLY TREND.. BOTH DOING JUST OVER 52 MILLION SUPPY AGAINST ZERO (0) DEMAND BOTH HAVE DONE A SUPPLY OF 30500 SHARES TO TIME! They should callme when they hit 15! Traders heaven
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
Cde Monomotapa wrote:What is interest rate control really? Is that proposal saying that KBRR is already ineffective? Huh?? Quote:The proposal, seen by Sunday Nation, also inserts a clause to have the minimum interest rate that a bank or a financial institution shall pay on deposits held in interest earning accounts shall be set at least 70 per cent in the minimum. How will any such control control variables of supply & demand side shocks? This is just the OMC pricing route. The only thing that can be 'tamed' is margins. Effectively, that means more ICT processes from banks. Major V.E.Rs, redundancy coming up and regional expansion. Banking is certainly not a sector to grow us wealth. CDE called out this law and left....  "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
|
murchr wrote:Cde Monomotapa wrote:What is interest rate control really? Is that proposal saying that KBRR is already ineffective? Huh?? Quote:The proposal, seen by Sunday Nation, also inserts a clause to have the minimum interest rate that a bank or a financial institution shall pay on deposits held in interest earning accounts shall be set at least 70 per cent in the minimum. How will any such control control variables of supply & demand side shocks? This is just the OMC pricing route. The only thing that can be 'tamed' is margins. Effectively, that means more ICT processes from banks. Major V.E.Rs, redundancy coming up and regional expansion. Banking is certainly not a sector to grow us wealth. CDE called out this law and left.... He must be owning a bank directly or indirectly thus feeling the heat. Can he be given the ice bath of Egritch is difficort Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
|
Boris Boyka wrote:murchr wrote:Cde Monomotapa wrote:What is interest rate control really? Is that proposal saying that KBRR is already ineffective? Huh?? Quote:The proposal, seen by Sunday Nation, also inserts a clause to have the minimum interest rate that a bank or a financial institution shall pay on deposits held in interest earning accounts shall be set at least 70 per cent in the minimum. How will any such control control variables of supply & demand side shocks? This is just the OMC pricing route. The only thing that can be 'tamed' is margins. Effectively, that means more ICT processes from banks. Major V.E.Rs, redundancy coming up and regional expansion. Banking is certainly not a sector to grow us wealth. CDE called out this law and left.... He must be owning a bank directly or indirectly thus feeling the heat. Can he be given the ice bath of Egritch is difficort CDE was a NBK die hard..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
|
earthvoice wrote:I've been following the duel between Equity and KCB for a while now, at least in terms of share prices, and there doesn't seem to be much between them. For example, Equity is currently trading at ~ KSh25.00 while KCB is at ~ KSh25.50-25.75, as opposed to earlier in the year when Equity peaked at KSh 30.00 and KCB was at KSh 23.50-24.00. My questions are: - in your opinion, between Equity and KCB, which is the better bet for medium to long-term investment? - following the conclusion of the prolonged sell-off by the foreign investor(s) that led to the price dip seen in recent weeks, is Equity expected to recover its pre-dividend price of KSh 27.00-28.00 any time soon?  These are the latest exposure of both equity and kcb to npls and interest expense. equity- npl kshs 18,754,823,000 LLP- 37% interest expense over income ratio 22% kcb-npl kshs 31,812,856,000 LLP-51% interest expense over income ratio-25% Based on the above statistics i choose kcb. i want to be rich and so i cannot afford to fear risk.Equity seems to play safe as evidenced by lower exposure to npls and interest expense.Kcb looks sharp.Despite its high exposure,its provisions are also higher. Towards the goal of financial freedom
|
|
|
Wazua
»
Investor
»
Stocks
»
EQUITY vs KCB
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.
|