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DTB: Diamond out of sight
Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
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BREAKING
DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.
Today, we were invited to an investors' conference.
Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".
He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.
They were also gathering a warchest for acquisitions before Covid happened.
Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).
He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.
Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.
He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.
He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.
The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".
The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.
I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Extraterrestrial wrote:BREAKING
DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.
Today, we were invited to an investors' conference.
Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".
He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.
They were also gathering a warchest for acquisitions before Covid happened.
Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).
He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.
Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.
He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.
He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.
The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".
The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.
I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen. The investors conference was an opportunity for the management to manage the shareholders. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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My 2 cents wrote:Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!! TRUTH
EPS 24/- DPS 2.60 and zero in FY2020 so less than 12% 2016-2019 Dividend Payout Ratio (2016-2019) Please correct any errors ABSA 50-80% even with the changeover Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC SCBK 50-80%. During COVID they reduced it by 50% but still quite high I&M paid every year at 25% while looking to buy Orient KCB Coop Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:Extraterrestrial wrote:BREAKING
DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.
Today, we were invited to an investors' conference.
Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".
He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.
They were also gathering a warchest for acquisitions before Covid happened.
Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).
He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.
Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.
He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.
He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.
The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".
The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.
I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen. The investors conference was an opportunity for the management to manage the shareholders. Did you attend? I believe you are right. The question about dividends and buybacks doesn't seem to have been answered. PR tu. They don't have shares like King James in the 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: 10,684 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:Extraterrestrial wrote:BREAKING
DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.
Today, we were invited to an investors' conference.
Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".
He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.
They were also gathering a warchest for acquisitions before Covid happened.
Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).
He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.
Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.
He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.
He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.
The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".
The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.
I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen. The investors conference was an opportunity for the management to manage the shareholders. Did you attend? I believe you are right. The question about dividends and buybacks doesn't seem to have been answered. PR tu. They don't have shares like King James in the bank. I didn't attend. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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VituVingiSana wrote:My 2 cents wrote:Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!! TRUTH
EPS 24/- DPS 2.60 and zero in FY2020 so less than 12% 2016-2019 Dividend Payout Ratio (2016-2019) Please correct any errors ABSA 50-80% even with the changeover Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC SCBK 50-80%. During COVID they reduced it by 50% but still quite high I&M paid every year at 25% while looking to buy Orient KCB Coop 2016 Group EPS 26.94 DPS 2.6
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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My 2 cents wrote:VituVingiSana wrote:My 2 cents wrote:Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!! TRUTH
EPS 24/- DPS 2.60 and zero in FY2020 so less than 12% 2016-2019 Dividend Payout Ratio (2016-2019) Please correct any errors ABSA 50-80% even with the changeover Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC SCBK 50-80%. During COVID they reduced it by 50% but still quite high I&M paid every year at 25% while looking to buy Orient KCB Coop 2016 Group EPS 26.94 DPS 2.6 2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same. Imagine 2.60 on 165/- as a dividend   and share price at 60/-. *And 165 was the Rights Price and not the prevailing share price of 240 at the time! 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: 10,684 Location: NAIROBI
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VituVingiSana wrote:My 2 cents wrote:VituVingiSana wrote:My 2 cents wrote:Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!! TRUTH
EPS 24/- DPS 2.60 and zero in FY2020 so less than 12% 2016-2019 Dividend Payout Ratio (2016-2019) Please correct any errors ABSA 50-80% even with the changeover Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC SCBK 50-80%. During COVID they reduced it by 50% but still quite high I&M paid every year at 25% while looking to buy Orient KCB Coop 2016 Group EPS 26.94 DPS 2.6 2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same. Imagine 2.60 on 165/- as a dividend and share price at 60/-. *And 165 was the Rights Price and not the prevailing share price of 240 at the time! Waah that is a terrible return to an investor. DTB is competing with insurance companies in terms of dividend payout. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:VituVingiSana wrote:My 2 cents wrote:Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!! TRUTH
EPS 24/- DPS 2.60 and zero in FY2020 so less than 12% 2016-2019 Dividend Payout Ratio (2016-2019) Please correct any errors ABSA 50-80% even with the changeover Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC SCBK 50-80%. During COVID they reduced it by 50% but still quite high I&M paid every year at 25% while looking to buy Orient KCB Coop 2016 Group EPS 26.94 DPS 2.6 2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same. Imagine 2.60 on 165/- as a dividend and share price at 60/-. *And 165 was the Rights Price and not the prevailing share price of 240 at the time! Waah that is a terrible return to an investor. DTB is competing with insurance companies in terms of dividend payout. Jubilee is doing better than DTB in paying dividends. A dividend of 2.60 is 1% of their stated NAV.  And they aren't expanding like Equity either. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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It is basically run like a sacco in the sense that the biggest stakeholders are depositors - management strives to pay them as a high an interest as possible. Everybody else is secondary. Shareholders, employees etc.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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My 2 cents wrote:It is basically run like a sacco in the sense that the biggest stakeholders are depositors - management strives to pay them as a high an interest as possible. Everybody else is secondary. Shareholders, employees etc. And giving out loans to their buddies. How were they caught in Nakumatt then Tuskys. KCB used to be the bankers of Tuskys then bolted out when they saw things turning for the worse,how DTB got involved nobody knows. They then involved themselves in Brittania which went under with their money. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this.
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Rank: Member Joined: 3/16/2019 Posts: 313
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My 2 cents wrote:Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this. The Court of Appeal set aside the High court ruling and ordered a retrial at the high court. The case had caused ripples in the Ug banking sector. LINKEquity had a similar case in Ug where Simbamanyo was disputing the legality of the loan. Equity went ahead and auctioned his property after expiry of the repayment deadline. LINKSeems DTB is weak
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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kmucheke wrote:My 2 cents wrote:Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this. The Court of Appeal set aside the High court ruling and ordered a retrial at the high court. The case had caused ripples in the Ug banking sector. LINKEquity had a similar case in Ug where Simbamanyo was disputing the legality of the loan. Equity went ahead and auctioned his property after expiry of the repayment deadline. LINKSeems DTB is weak That HAM guy is a conman. You cannot auction someone's property without court orders and it seems the crook has been greasing judges and others. DTB did debit his account so mitigated some of the losses. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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