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Potential merger NIC + CBA
Rank: Elder Joined: 12/4/2009 Posts: 10,815 Location: NAIROBI
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Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 1/1/2011 Posts: 396
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Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs.
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Rank: Member Joined: 1/1/2011 Posts: 396
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mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable.
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Rank: Member Joined: 5/2/2018 Posts: 267
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Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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Superprime1 wrote:Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
is it all about insider trading in kenya but where is the huge demand? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 5/2/2018 Posts: 267
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mlennyma wrote:Superprime1 wrote:Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
is it all about insider trading in kenya but where is the huge demand? Over 100,000 units have since changed hands at 29. Yeah, NSE's transparency still opaque as some people always seem to know something ahead of others.
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Rank: Member Joined: 2/20/2007 Posts: 767
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jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 1/1/2011 Posts: 396
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tom_boy wrote:jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. If you have NPLs of 12.4% then 12.4% of your lending portfolio may never get repaid back. If you are taking deposits and some shareholders equity in order to lend, then a 13% lending rate leaves ko room for all your other expenses AND to return a profit to shareholders.
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Rank: Member Joined: 2/20/2007 Posts: 767
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jmbada wrote:tom_boy wrote:jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. If you have NPLs of 12.4% then 12.4% of your lending portfolio may never get repaid back. If you are taking deposits and some shareholders equity in order to lend, then a 13% lending rate leaves ko room for all your other expenses AND to return a profit to shareholders. I see your point. However, the bank only need be worried if the lending process was both reckless ( lent to persons who would not ordinarily have qualified) and unsecured. Non performing loans net of security should be very low. Look at Nakumatt and Deacons. Banks gave huge virtually unsecured loans based on what exactly! They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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