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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising. It's the same thing as what i said. IFRS9=Higher capital to cater for risks @ericsson Some banks [esp one SIFI with a huge GoK shareholding] got a pass [on the Capital side as @wukan put it] but that doesn't mean they do not have to "provision" the SLRs within that timeframe. The question is: Why does KCB have SLRs (as a % of the Loan Book) far higher than the most of the banks? KCB is the biggest bank and the biggest loan portfolio in kenya. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising. It's the same thing as what i said. IFRS9=Higher capital to cater for risks @ericsson Some banks [esp one SIFI with a huge GoK shareholding] got a pass [on the Capital side as @wukan put it] but that doesn't mean they do not have to "provision" the SLRs within that timeframe. The question is: Why does KCB have SLRs (as a % of the Loan Book) far higher than the most of the banks? KCB is the biggest bank and the biggest loan portfolio in kenya. But why the largest SLR as a % of its Loan Portfolio? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising. It's the same thing as what i said. IFRS9=Higher capital to cater for risks @ericsson Some banks [esp one SIFI with a huge GoK shareholding] got a pass [on the Capital side as @wukan put it] but that doesn't mean they do not have to "provision" the SLRs within that timeframe. The question is: Why does KCB have SLRs (as a % of the Loan Book) far higher than the most of the banks? KCB is the biggest bank and the biggest loan portfolio in kenya. But why the largest SLR as a % of its Loan Portfolio? They are providing higher provisionings for their loans compared to the other banks and a higher risk profile.This has the effect of them being very stringent and thoroughly vetting their loan applications. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:wukan wrote:Ericsson wrote:CBK has given banks 5 years to comply with IFRS9.
Wapi vvs to comment on this No CBK gave banks 5 years to repair the capital side. Banks implement IFRS9 but 5 years to do capital raising. It's the same thing as what i said. IFRS9=Higher capital to cater for risks @ericsson Some banks [esp one SIFI with a huge GoK shareholding] got a pass [on the Capital side as @wukan put it] but that doesn't mean they do not have to "provision" the SLRs within that timeframe. The question is: Why does KCB have SLRs (as a % of the Loan Book) far higher than the most of the banks? KCB is the biggest bank and the biggest loan portfolio in kenya. But why the largest SLR as a % of its Loan Portfolio? They are providing higher provisionings for their loans compared to the other banks and a higher risk profile.This has the effect of them being very stringent and thoroughly vetting their loan applications. Then why are the increased provisions being "written back" as SLRs? How do SLRs originate? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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@vvs SLR you cant do a comparison amongst banks because the amount to put aside varies on each bank. For further reading refer to the below article http://www.investingansw...loan-loss-reserves-2790
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Let me leave this here https://www.businessdail...08600-pkmxjiz/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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[quote=obiero]Let me leave this here https://www.businessdail...8600-pkmxjiz/index.html[/quote] Like you've all along been singing "the two boys have messed the economy" Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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@ericsson the worst is yet to come. Kibaki understood the country and how it ticks
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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obiero wrote:@ericsson the worst is yet to come. Kibaki understood the country and how it ticks I agree with you 100%.Iko watu watajiharia Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Its because of Gok.The three banks have no problem.The problem is with poor gok borrowing. Towards the goal of financial freedom
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Ebenyo wrote:Its because of Gok.The three banks have no problem.The problem is with poor gok borrowing. Remember economics 101
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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CBK says banks to take full capital hit from 2019 loans https://www.businessdail...91260-num3dmz/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Funga mishipi na chungeni mifuko
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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https://kenyanwallstreet...nk-under-economic-bloc/
ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda. Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion. “We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu. Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Ericsson wrote:https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/
ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.
Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.
“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.
Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General. This is madness redefined. So we set up a bank for guaranteed loan approvals to effect the development agenda? This doesn't make any sense at all
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Ericsson wrote:https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/
ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.
Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.
“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.
Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General. They should buy Sidian Bank  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:https://kenyanwallstreet.com/14-lake-region-governors-set-to-acquire-bank-under-economic-bloc/
ourteen governors have said they will acquire an existing bank under the Lake Region Economic Bloc (LREB) to propel their development agenda.
Wycliffe Oparanya, LREB chairman and Governor Kakamega County said ex KCB Group CEO Martin Oduor has been asked to help find a potential bank for the bloc’s project worth Sh2.8 billion.
“We have decided to buy an existing bank instead of establishing a new one, which will take time. […] We want a smaller bank where we have a controlling share,” Oparanya said at Lesavanna Hotel in Kisumu.
Governor Oparanya said the project is at an advanced stage and have discussed the matter over with the Controller of budget, the governor of the Central Bank, and the Auditor General. They should buy Sidian Bank That is a loss making entity with little presence in that zone. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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BBK KES 12, NIC KES 37, KCB KES 48.. Three financials in today's top losers. Interesting times as we await Q1
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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obiero wrote:BBK KES 12, NIC KES 37, KCB KES 48.. Three financials in today's top losers. Interesting times as we await Q1 For the last 2, KCB - dividend & NIC dividend plus bonus close was Monday 30th April. They will recover. Look at Equity. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Ericsson wrote:obiero wrote:@ericsson the worst is yet to come. Kibaki understood the country and how it ticks I agree with you 100%.Iko watu watajiharia Kibaki was a smart economist. No comparison with the two boys currently crumbling the nation. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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