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KCB or Equity Bank?
Rank: Member Joined: 5/6/2008 Posts: 199
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[Deleted] Ebenyo wrote:FUNKY wrote:https://www.businessdailyafrica.com/news/Equity-to-switch-Sh150bn-State-bonds-for-SME-loans/539546-5109052-view-asAMP-pwuv08z/index.html?__twitter_impression=true
Time to load more member shares I predict price to rise between 60-70 levels This is a very good move from Equity. Though It looks like rivalry with kcb. Equity current loan book is kshs 297,226,915,000 billion,while kcb current loan book is kshs 455,880,284,000 billion. If you add the 150 billion into Equity loan book,it becomes kshs 447,226,915,000! nearly to kcb. But kcb has already acquired NBK and imperial bank which means there will be increase of their loan book too!
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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obiero wrote:Angelica _ann wrote:Ericsson wrote:obiero wrote:Ebenyo wrote:FUNKY wrote:https://www.businessdailyafrica.com/news/Equity-to-switch-Sh150bn-State-bonds-for-SME-loans/539546-5109052-view-asAMP-pwuv08z/index.html?__twitter_impression=true
Time to load more member shares I predict price to rise between 60-70 levels This is a very good move from Equity. Though It looks like rivalry with kcb. Equity current loan book is kshs 297,226,915,000 billion,while kcb current loan book is kshs 455,880,284,000 billion. If you add the 150 billion into Equity loan book,it becomes kshs 447,226,915,000! nearly to kcb. But kcb has already acquired NBK and imperial bank which means there will be increase of their loan book too! SME lending in the current economic situation? That's what I'm wondering. there is still guys to lend to ~ fuliza etc Check out the default rates on SME and revert.. Note Fuliza is primarily a consumer lending line and not SME James Mwangi takes Kenyans to be fools who don't understand the economy. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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tandich wrote:[Deleted] Ebenyo wrote:FUNKY wrote:https://www.businessdailyafrica.com/news/Equity-to-switch-Sh150bn-State-bonds-for-SME-loans/539546-5109052-view-asAMP-pwuv08z/index.html?__twitter_impression=true
Time to load more member shares I predict price to rise between 60-70 levels This is a very good move from Equity. Though It looks like rivalry with kcb. Equity current loan book is kshs 297,226,915,000 billion,while kcb current loan book is kshs 455,880,284,000 billion. If you add the 150 billion into Equity loan book,it becomes kshs 447,226,915,000! nearly to kcb. But kcb has already acquired NBK and imperial bank which means there will be increase of their loan book too! I bet they will do this gradually... The best trading days at the Bond market rarely goes above 5Bn....Average daily turnover is like 1.5Bn.... It will take quite a bit of time to offload the bonds..... One thing I know the profit they will book out of this process will be out of this world... They sit on papers issued at very nice rates... possunt quia posse videntur
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Rank: Member Joined: 3/15/2009 Posts: 362
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maka wrote:tandich wrote:[Deleted] Ebenyo wrote:FUNKY wrote:https://www.businessdailyafrica.com/news/Equity-to-switch-Sh150bn-State-bonds-for-SME-loans/539546-5109052-view-asAMP-pwuv08z/index.html?__twitter_impression=true
Time to load more member shares I predict price to rise between 60-70 levels This is a very good move from Equity. Though It looks like rivalry with kcb. Equity current loan book is kshs 297,226,915,000 billion,while kcb current loan book is kshs 455,880,284,000 billion. If you add the 150 billion into Equity loan book,it becomes kshs 447,226,915,000! nearly to kcb. But kcb has already acquired NBK and imperial bank which means there will be increase of their loan book too! I bet they will do this gradually... The best trading days at the Bond market rarely goes above 5Bn....Average daily turnover is like 1.5Bn.... It will take quite a bit of time to offload the bonds..... One thing I know the profit they will book out of this process will be out of this world... They sit on papers issued at very nice rates... When they sell they will just realise their paper profits, otherwise they have been booking those gains under "Fair value changes in available for sale financial assets" There will be a big effect on the cash flow statement but not much on the profit and loss statement
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Rank: New-farer Joined: 9/8/2018 Posts: 24
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'There will be a big effect on the cash flow statement but not much on the profit and loss statement'
Is the effect expected soon, or are they going to give it time and how for how long?
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Kcb share price on upward trend while equity bank on downward. Kcb has just completed acquisition of NBK while equity bank is in the process of acquiring Atlas mara banking assets Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Ericsson wrote:Kcb share price on upward trend while equity bank on downward.
Kcb has just completed acquisition of NBK while equity bank is in the process of acquiring Atlas mara banking assets The direction of the price of the shares doesn't determine the future performance. NBK gives KCB guaranteed business from GoK but where there's no GoK how does KCB perform vs Equity? What's the potential growth in the new markets vs Kenya? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/20/2007 Posts: 2,074 Location: Lagos, Nigeria
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Ericsson wrote:Kcb share price on upward trend while equity bank on downward.
Kcb has just completed acquisition of NBK while equity bank is in the process of acquiring Atlas mara banking assets To me based on their current prices, Equity is underpriced , it should be at par with KCB if not higher. But from dividend angle and for dividend hunters like me, please give me more KCB and take away your Equity. WHY ? 3.5 bob VS 2.0 bob dividend the difference is clear. KCB also paying dividend twice (interim and final) is also salulatory to us non resident foreigners and retirees like me (income). KCB is a balanced counter , investing in growth and also compensating shareholders accordingly . Equity is on aggressive growth only . Different strokes to different folks. Strictly old papa mzee@Young opinion . The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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young wrote:Ericsson wrote:Kcb share price on upward trend while equity bank on downward.
Kcb has just completed acquisition of NBK while equity bank is in the process of acquiring Atlas mara banking assets To me based on their current prices, Equity is underpriced , it should be at par with KCB if not higher. But from dividend angle and for dividend hunters like me, please give me more KCB and take away your Equity. WHY ? 3.5 bob VS 2.0 bob dividend the difference is clear. KCB also paying dividend twice (interim and final) is also salulatory to us non resident foreigners and retirees like me (income). KCB is a balanced counter , investing in growth and also compensating shareholders accordingly . Equity is on aggressive growth only . Different strokes to different folks. Strictly old papa mzee@Young opinion . Mzee Young. Kindly look at the market caps for Equity and KCB respectively: Equity 135.662B KCB 134.3B Equity shares issued 3.769B KCB shares issued: 3.213B PE: EQUITY : 7.2 KCB: 5.8
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Horton wrote:young wrote:Ericsson wrote:Kcb share price on upward trend while equity bank on downward.
Kcb has just completed acquisition of NBK while equity bank is in the process of acquiring Atlas mara banking assets To me based on their current prices, Equity is underpriced , it should be at par with KCB if not higher. But from dividend angle and for dividend hunters like me, please give me more KCB and take away your Equity. WHY ? 3.5 bob VS 2.0 bob dividend the difference is clear. KCB also paying dividend twice (interim and final) is also salulatory to us non resident foreigners and retirees like me (income). KCB is a balanced counter , investing in growth and also compensating shareholders accordingly . Equity is on aggressive growth only . Different strokes to different folks. Strictly old papa mzee@Young opinion . Mzee Young. Kindly look at the market caps for Equity and KCB respectively: Equity 135.662B KCB 134.3B Equity shares issued 3.769B KCB shares issued: 3.213B PE: EQUITY : 7.2 KCB: 5.8 KCB is the one that seems undervalued Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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