KCB 2018 and Beyond - Page 73 - Stocks - Wazua

Welcome Guest

Wazua » Investor » Stocks » KCB 2018 and Beyond

KCB 2018 and Beyond

Options

Previous Topic · Next Topic

watesh		#721 Posted : Monday, July 31, 2023 9:44:16 AM
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya		KCB trading lower than covid lows. PE currently at 2.2 and can potentially go below 2 if we get improved earnings later in the year
Back to top		WWW \|
User Profile

My 2 cents		#722 Posted : Monday, July 31, 2023 12:31:06 PM
Rank: Veteran Joined: 6/2/2010 Posts: 1,089		watesh wrote: KCB trading lower than covid lows. PE currently at 2.2 and can potentially go below 2 if we get improved earnings later in the year The market is fearful of the managements propensity for greed. The management have discovered the new cash cow. Withhold dividends to make 'acquisitions' - who knows if these acquisitions are being made competitively. I saw an interview with the CFO where he talks about the fact that they are still keeping a eye out for 'good acquisitions' - possibly Ethiopia. Trust me, each time these acquisitions are made, there is a group that is making GOOD MONEY. I hope I am wrong. If I am wrong - KCB is a screaming BUY.
Back to top		\|
User Profile

Queen		#723 Posted : Tuesday, August 01, 2023 1:24:08 PM
Rank: Member Joined: 11/21/2018 Posts: 564 Location: Britain		My 2 cents wrote: watesh wrote: KCB trading lower than covid lows. PE currently at 2.2 and can potentially go below 2 if we get improved earnings later in the year The market is fearful of the managements propensity for greed. The management have discovered the new cash cow. Withhold dividends to make 'acquisitions' - who knows if these acquisitions are being made competitively. I saw an interview with the CFO where he talks about the fact that they are still keeping a eye out for 'good acquisitions' - possibly Ethiopia. Trust me, each time these acquisitions are made, there is a group that is making GOOD MONEY. I hope I am wrong. If I am wrong - KCB is a screaming BUY. I suspect you are right. Moreover KCB's past history hardly inspires any confidence. Greedy and well politically-connected individuals are known to use KCB as a cash cow.
Back to top		WWW \| \| Edit by user: Tuesday, August 01, 2023 3:06 PM \| Reason: Not specified
User Profile

xtina		#724 Posted : Thursday, August 24, 2023 9:27:10 AM
Rank: Member Joined: 6/26/2008 Posts: 399		Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming
Back to top		\|
User Profile

watesh		#725 Posted : Thursday, August 24, 2023 11:29:16 AM
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya		xtina wrote: Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming From my observations, they are having a bunch of challenges with some large loans from the Oigara era eg English Point Marina (Ksh5bn). Loan loss provisions have just been up ever since the new CEO took over. NBK on the other hand got a kick in the nuts when the Supreme Court ordered them to pay Ksh2.2bn to ex Taveta MP Basil. I don't think they can appeal that. All these affect capital ratios and dividend amount possible. On the positive side - Subsidiaries are finally growing fast. Most impressive one is Tanzania. Kenyan subsidiary got a huge influx of deposits in Q2 (Ksh200bn in one quarter) hence higher interest rate spend. If these deposits are sticky, they can make good money. Top line growth is there but heavy provisions are pushing this bank back. It's a mixed bag but not the beginning of the end.
Back to top		WWW \|
User Profile

VituVingiSana		#726 Posted : Thursday, August 24, 2023 11:53:02 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		watesh wrote: xtina wrote: Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming From my observations, they are having a bunch of challenges with some large loans from the Oigara era eg English Point Marina (Ksh5bn). Loan loss provisions have just been up ever since the new CEO took over. NBK on the other hand got a kick in the nuts when the Supreme Court ordered them to pay Ksh2.2bn to ex Taveta MP Basil. I don't think they can appeal that. All these affect capital ratios and dividend amount possible. On the positive side - Subsidiaries are finally growing fast. Most impressive one is Tanzania. Kenyan subsidiary got a huge influx of deposits in Q2 (Ksh200bn in one quarter) hence higher interest rate spend. If these deposits are sticky, they can make good money. Top line growth is there but heavy provisions are pushing this bank back. It's a mixed bag but not the beginning of the end. 1) It seems Oigara was understating the NPLs. New broom sweeps clean. 2) KCB KE growth in deposits might be due to the G2G fuel deal. Unlikely to be sticky unless that program is extended. 3) Some of the CARs are barely above the minimum which will constrain further growth. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		\|
User Profile

watesh		#727 Posted : Friday, August 25, 2023 8:10:28 AM
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya		VituVingiSana wrote: watesh wrote: xtina wrote: Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming From my observations, they are having a bunch of challenges with some large loans from the Oigara era eg English Point Marina (Ksh5bn). Loan loss provisions have just been up ever since the new CEO took over. NBK on the other hand got a kick in the nuts when the Supreme Court ordered them to pay Ksh2.2bn to ex Taveta MP Basil. I don't think they can appeal that. All these affect capital ratios and dividend amount possible. On the positive side - Subsidiaries are finally growing fast. Most impressive one is Tanzania. Kenyan subsidiary got a huge influx of deposits in Q2 (Ksh200bn in one quarter) hence higher interest rate spend. If these deposits are sticky, they can make good money. Top line growth is there but heavy provisions are pushing this bank back. It's a mixed bag but not the beginning of the end. 1) It seems Oigara was understating the NPLs. New broom sweeps clean. 2) KCB KE growth in deposits might be due to the G2G fuel deal. Unlikely to be sticky unless that program is extended. 3) Some of the CARs are barely above the minimum which will constrain further growth. G2G seems to be ending. KCB might go back to struggling getting deposits. Looking forward to KCB CEO interview by Julians Amboko. He will shed more light on most of these issues. If they are not as bad as they seem then KCB is a good buy below 25.
Back to top		WWW \|
User Profile

Jon Jones		#728 Posted : Friday, August 25, 2023 7:52:58 PM
Rank: Member Joined: 9/11/2015 Posts: 245 Location: Thika		Newton's first law of motion. Things continue to persist. I will stay as far away from this counter as I possibly can until they record an increase in FY profits compared to the previous year. I expect the profits to keep declining until something fundamental changes. *Since men have learned to shoot without missing, I have learned to fly without perching*
Back to top		WWW \|
User Profile

Ericsson		#729 Posted : Saturday, August 26, 2023 11:01:23 AM
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI		watesh wrote: xtina wrote: Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming From my observations, they are having a bunch of challenges with some large loans from the Oigara era eg English Point Marina (Ksh5bn). Loan loss provisions have just been up ever since the new CEO took over. NBK on the other hand got a kick in the nuts when the Supreme Court ordered them to pay Ksh2.2bn to ex Taveta MP Basil. I don't think they can appeal that. All these affect capital ratios and dividend amount possible. On the positive side - Subsidiaries are finally growing fast. Most impressive one is Tanzania. Kenyan subsidiary got a huge influx of deposits in Q2 (Ksh200bn in one quarter) hence higher interest rate spend. If these deposits are sticky, they can make good money. Top line growth is there but heavy provisions are pushing this bank back. It's a mixed bag but not the beginning of the end. Uganda also growing faster than Tanzania percentage wise. TMB also growing fast on the balance sheet aspect if you compare FY2022 and HY2023 Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
Back to top		WWW \|
User Profile

watesh		#730 Posted : Monday, August 28, 2023 9:16:59 AM
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya		Ericsson wrote: watesh wrote: xtina wrote: Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming From my observations, they are having a bunch of challenges with some large loans from the Oigara era eg English Point Marina (Ksh5bn). Loan loss provisions have just been up ever since the new CEO took over. NBK on the other hand got a kick in the nuts when the Supreme Court ordered them to pay Ksh2.2bn to ex Taveta MP Basil. I don't think they can appeal that. All these affect capital ratios and dividend amount possible. On the positive side - Subsidiaries are finally growing fast. Most impressive one is Tanzania. Kenyan subsidiary got a huge influx of deposits in Q2 (Ksh200bn in one quarter) hence higher interest rate spend. If these deposits are sticky, they can make good money. Top line growth is there but heavy provisions are pushing this bank back. It's a mixed bag but not the beginning of the end. I am really excited about TMB. Judging from what Equity have been able to do with EquityBCDC, KCB are also capable of building a similar sized bank in Congo. In addition to TMB, they also bought an insurance company so that's something they can grow too. Uganda also growing faster than Tanzania percentage wise. TMB also growing fast on the balance sheet aspect if you compare FY2022 and HY2023
Back to top		WWW \|
User Profile

80 Pages«<7172737475>»

Wazua » Investor » Stocks » KCB 2018 and Beyond

Forum Jump

You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Watch this topic
Print this topic

Normal
Threaded