They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings...

Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime?

Govt should just criminalize this 'consignment model' of running retail stores

The "Consignment Model" is common and makes sense for retailers. The retailer doesn't want to be stuck with slow moving goods whereas the seller/importer/manufacturer finds a place to sell his goods.

Without the consignment model, a retailer may choose to stock what is guaranteed to move vs try new brands or products.

The weakness lies in the corporate governance and laws. There are contracts in place and they should be adhered to but that's where the problem starts. Going to court is expensive and takes ages.

Loans come in ALL shapes and sizes. It all depends on the Lender and the Borrower.

From zero collateral e.g. Fuliza to heavily collateralized e.g. real estate loans/mortgages. Even then there are issues for the latter!

What hard assets would a bank e.g. DTB collateralize when Tuskys probably rents/leases the stores, furniture and buys goods on credit?

The "regulator" - who would that be? - can enact rules based on laws but there are issues with that too. Who should be regulated?
The supermarkets?
Which ones?
Which size?
Who will monitor that?

As they say, do check out who you go into business with!

Perhaps it is time for a group of "suppliers" to start their own supermarket chain. Not easy though!

Most banks do not directly comment on specific loans or clients so I cannot answer this for certain BUT in short it should have been provisioned. I assume they provisioned 100% after Nakumatt went into bankruptcy.

A write-off is technically different.

@Fyatu - The past is the past so for now forget about what price you bought the shares.

Let's look at the current price of 62/-.

At 62/-, the market has fully discounted DIRECT and KNOWN losses from Nakumatt and Tuskys.

Mambo za watu wengine, as much as it hurts, is not an issue for DTB shareholders UNLESS they owe money to DTB. What DTB needs to do is investigate those who have borrowed from DTB and are stuck with Tuskys debt.

E.g. Acme Limited supplied Widgets to Tuskys. Acme borrowed 1mn, imported raw materials and manufactured widgets it sent to Tuskys. Tuskys owes Acme 1mn and is not paying. Ouch.

DTB needs to follow up with Acme but also NPL the 1mn if Acme is struggling to pay. Acme may pay, but slowly from Acme's profits from sales to Carrefour, so there may not be a need to provision the full 1mn.

NPLs = There is a possibility of the loan going bad. A balance sheet item.

Provision = A certain % of the loan has gone bad or very likely to go bad. BUT the bank can wait patiently, restructure/renegotiate or go to court for breach. It shows up on the P&L and Balance Sheet (Look under Disclosures)

Write-off = Bank has given up. It cleans up the Balance Sheet. There is no "loss" on the P&L but the Balance Sheet shrinks.

*There are accounting conventions.

Q3--2.12bn

Q4--Loss of 1.932bn

FY2020 PBT Ksh.4.668bn
A drop of 58.5% from FY2019 figure
No dividend declared

https://pbs.twimg.com/me...at=png&name=900x900

https://pbs.twimg.com/me...at=png&name=900x900

https://www.nse.co.ke/ph...ar-ended-31-dec-2020.pdf

Tight fisted and mean spirited attitude in an era where every penny given to shareholders in dividend is a blessing...you don't grow shareholder value by taking everything to retained earnings! nkt...