watesh wrote:VituVingiSana wrote:watesh wrote:MadDoc wrote:Did everyone forget about DTB?
I hate their dividend yield and payout ratio. They always want to keep all the money. Am sure if it were not pressure from some shareholders they would keep all the money forever. EPS of 24 DPS of 2.5 yet its still not number 1
Berkshire Hathaway hasn't paid a dividend in decades.
Its not a bank, its more of an investment company. And you can clearly see where the money is going. Growth is phenomenal.
DTB on the other hand, it performs on the same level or worse than KCB and Equity who have been paying out 30% -40% of their profits. Q3 2016 DTB had an 11.5% rise in profit, KCB 18%, Equity 18%.....With the interest rate cap expect dividends next year to be stagnant or go lower. DTB might decide to keep all the money
You can see where DTB's money goes.
KCB has done several LARGE Rights Issues. Last year it was perilously close to breaching a Capital Ratio. I think they cooked the books with the connivance of CBK and Treasury. Something doesn't sit right with me about KCB.
DTB does many but "small" Rights Issues every 2-3 years but I think they will slow down the pace unless there is an acquisition coming up. They used the Rights proceeds to invest in their EAC business.
Whether it is a bank or investment firm, it makes no difference. What's important is the "investment" required. What's important is the RoE.
I like DTB coz they have a conservative streak. KCB does benefit from GoK's largesse & implicit support. Ask why isn't NBK under statutory management? Coz of GoK. So KCB will be bailed out by the taxpayer if the shit hits the fan.
DTB in my view is a steady performer. No drama. No uplifting CEO talks all over the place. She sticks to her biashara which has done very well over the years.
If had only 3 banks to choose from... DTB, Equity and KCB then it would be Equity & DTB.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett