Very volatile investment environment!!!!!

South Sudan should be further split into two;
One country headed by Salva Kiir and his militias and the other headed by Riek Machar and his militias.
Seems this is a forced marriage for two people who don't want to share same bed

The NPLs as at 31st dec 2015 were kshs 23,477,475,000.The LLP was kshs 11,292,003,000.
At 31st march 2016,the NPLs increased to kshs 30,436,873,000
The LLP also increased to kshs 12,603,423,000.
This means the increase of the NPL of kshs 6,959,398,000 was provided with an LLP of kshs 688,580,000.
If this article is true,the NPL of kshs 6,959,398,000 will now be cleared.But since Q2 is over,this will reflect in Q3 results.
The best way they will account for this NPLs is through LLP which they have done.The other ways are blacklisting in crb and auction.

this has come to pass. what is the TA perspective saying now?

Counter recouping some losses today.

Quote:

Kenya power was the highest loser for the week as its stock sunk 10.20%. The other losers for the week were Coop, Britam and KCB whose shares declined by 7.32%, 5.17% and 3.01% respectively. KCB has scaled down its operations in war torn South Sudan. This has led to the closure of 19 of its branches.

rent on leased properties and idle staff

@mundiwambeu,my brother,i dont get your point.

I now get u.I understand the pain.But dont get discouraged.KCB looks fundamentally strong.What is happening is the usual challenges that every business goes through.
1.Increasing NPLs-This is alarming.They currently stand at kshs 30 billion.
Recent press reports indicates this will have reduced by 7% when we get the quater 3 results in Nov.
2.South Sudan- The management has scaled down operations their.19 branches have been closed.
Lets hope Marchar and Kiir will put things in order for their country.
The board of directors should consider pulling out if the problem persist.There are other targets to concetrate venturing i.e somalia and mozambique.
3.Rights Issue-The board said the main reason was to raise kshs 10 billion.This money should be used for expansion.Either Somalia or Mozambique.
I didnt attend the AGM,but since it was approved by majority shareholders,we will go with them.
4.Chase bank-dont get worried about the probability of kcb acquiring it.The thieves who stole the money their,are no longer around.If kcb buys,it will be directly under its management.They are still doing due dilligence of the viability of chase bank and they will let us know if its profitable or not.You should know that a big chunk of SME was their and thats a good catch.
Take advantage of the falling price to increase your stake.Remember during the last bull run kcb reached ksh 60 per share! So the current price of 32 is a bargain.
Kcb is a good company to put your money.The CEO,Oigara,is a youngman who is focused and innovative.

Did they lend to uchumi? i dont know.I only know the Npls is ksh 30 bilion.The correct picture will be revealed by Q3 results.Now lets wait Q2 results which is due next month.Then we will know which way forward.