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DTB FY16
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VituVingiSana
#11 Posted : Tuesday, March 21, 2017 8:55:35 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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MadDoc
#12 Posted : Tuesday, March 21, 2017 9:44:34 PM
Rank: Member

Joined: 10/26/2015
Posts: 151
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.



On the cashflow statement, DTB repaid a loan of 14B. This was a stark increase from 2015 when they repaid 0.8B. Could you please shed some light on this?
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VituVingiSana
#13 Posted : Tuesday, March 21, 2017 10:08:29 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
MadDoc wrote:
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.



On the cashflow statement, DTB repaid a loan of 14B. This was a stark increase from 2015 when they repaid 0.8B. Could you please shed some light on this?

Unfortunately, this level of detail can only be gleaned from an Annual Report or presentation.
I speculate it may be a repayment of loans or financing from an institution like IFC.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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omega
#14 Posted : Tuesday, March 21, 2017 10:42:17 PM
Rank: Member

Joined: 6/9/2009
Posts: 85
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.


DTB buys Habib Bank for Sh1.8bn in share swap deal

"Diamond Trust Bank (DTB) is set to acquire Habib Bank Limited for Sh1.8 billion, using its own shares to compensate owners of the small lender.

Habib investors, who already own 11.97 per cent of DTB, have been offered a 4.75 per cent stake in the Nairobi Securities Exchange-listed firm.


They will be allotted 13.2 million shares in DTB at a price of Sh137.39, representing a 33.3 per cent premium on the stock’s closing price of Sh103 on Tuesday."
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VituVingiSana
#15 Posted : Tuesday, March 21, 2017 10:52:58 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
omega wrote:
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.


DTB buys Habib Bank for Sh1.8bn in share swap deal

"Diamond Trust Bank (DTB) is set to acquire Habib Bank Limited for Sh1.8 billion, using its own shares to compensate owners of the small lender.

Habib investors, who already own 11.97 per cent of DTB, have been offered a 4.75 per cent stake in the Nairobi Securities Exchange-listed firm.


They will be allotted 13.2 million shares in DTB at a price of Sh137.39, representing a 33.3 per cent premium on the stock’s closing price of Sh103 on Tuesday."

This will improve DTB's CARs since it is issuing shares & getting HBL's Shareholder Funds" in exchange. HBL probably had a clean book so that complements DTB. And they aren't getting the shares on the cheap though below NAV but in this bear market...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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tandich
#16 Posted : Tuesday, March 21, 2017 11:43:47 PM
Rank: Member

Joined: 5/6/2008
Posts: 199
Pesa Nane wrote:
Full results link https://view.publitas.co...year-ended-31-dec-2016/



Revaluation gain... Think
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Horton
#17 Posted : Wednesday, March 22, 2017 2:35:02 AM
Rank: Veteran

Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.



Buying Habib bank is hardly an achievement tooting about. I dont even know where they have a branch. Not sure how much value addition or synergy this would bring in
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Gatheuzi
#18 Posted : Wednesday, March 22, 2017 7:14:40 AM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
tandich wrote:
Pesa Nane wrote:
Full results link https://view.publitas.co...year-ended-31-dec-2016/



Revaluation gain... Think

Revaluation gains are part of Other Comprehensive Income. OCI is not used to compute EPS. You can choose to ignore it because it does not spice anything up. Unless the properties are sold, it is just an FYI.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Gatheuzi
#19 Posted : Wednesday, March 22, 2017 10:25:25 AM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
VituVingiSana wrote:
MadDoc wrote:
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.



On the cashflow statement, DTB repaid a loan of 14B. This was a stark increase from 2015 when they repaid 0.8B. Could you please shed some light on this?

Unfortunately, this level of detail can only be gleaned from an Annual Report or presentation.
I speculate it may be a repayment of loans or financing from an institution like IFC.

The main reason is that they used the opening Cash and Cash Equivalents to repay the borrowings. This is explained by the reduction in C&CE from 15.2B at the beginning of the year to the closing position of 2.8B.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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VituVingiSana
#20 Posted : Wednesday, March 22, 2017 10:28:07 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
Horton wrote:
VituVingiSana wrote:
If DTB plans to pay $18mn in cash for HBL, then it's a huge payout in total of KES 500mn + 2bn = 2.5bn
I like firms that pay stingy dividends but don't ask shareholders for silly Scrip Dividends or Rights Issues immediately afterwards.

DTB has a chance to buy more banks in KE or regionally. Or expand into another country. Or increase its shareholding in its subsidiaries.

Tough times are coming in 2017 and you want a well-capitalized bank not one whose CARs are weak coz of paying heavy dividends. Aga Khan firms think long-term.



Buying Habib bank is hardly an achievement tooting about. I dont even know where they have a branch. Not sure how much value addition or synergy this would bring in

Who tooted about it?
11 branches, 0.34% market share, clean Balance Sheet. It's just clean-up on the majority owners' end. Note there is no cash payout which also shows the Sellers have 100% "skin in the game" unlike Ennsvalley to Unga, or Giro to I&M.

There are 2 Habibs in Kenya [Wikipedia] but cousins without common ownership. One is from Zurich [branch] and HBKL a subsidiary of Habib Pakistan.

I prefer "smaller" acquisitions [as a buyer] that can easily be absorbed, cost less than 1 year's earnings and in case it fails, doesn't severely affect the "buyer"

If Giro doesn't work out, I&M can write off the goodwill. [Total cost was less than 1 yr PBT]
If Ennsvalley has issues [see Nakumatt store closures, slow payment] then Unga can write it down without impacting the other businesses. [Total cost was about 1 yr PBT pre-acquisition]
If HBL has issues post-acquisition, then DTB can write off 1Q of profits. Peanuts.
Equity bought the DRC business for a fraction of EBL's annual PAT. They also learnt lessons from the botched UG acquisition.

KK is also acquiring stations [target is 30 in 2017] all over and if a few have issues the entire firm isn't severely handicapped. Lessons learnt from the Segman days of multiple acquisitions.

KQ on the other hand wanted to 3x [or even higher capacity] their fleet in 5 years. Ouch. Add debt by the planeload and double ouch.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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