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.

Is this the beginning of the end? I am not a KCB shareholder but the latest results are very alarming

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.

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.

You are very optimistic on the DPS

Capital Adequacy ratios for KCB Kenya is a worrying concern.
Possibility of a rights issue cannot be ruled out to recapitalise KCB Kenya

Nice! A 3% - 5% margin on that 300bn deposit can net them close to 10bn - 15bn annually. That is a good tailwind to have. In addition to this, there is the new Treasury unit to optimize the excess cash in TMB and KCB TZ

My bad, it's actually a 2% minimum margin on the shilling-denominated escrow account (interest bearing at the 91-day T-bill rate minus 2.0 percent). So there is an opportunity there.
Then there is the 0.4% on Letters Of Credit issued and exchange rate spread.

https://www.money254.co.ke/post/kcb-group-reports-ksh30-7b-profit-in-quarter-3-2023-news
The KCB Group has reported a Ksh30.7 billion net profit for the nine months leading up to September 2023 up from the Ksh30.6 billion profit posted over the same period in 2022.

This coming from a strong growth in Quarter 3, 2023, where the group recorded a 34% growth in net earnings of Ksh14.6 billion as compared to Ksh10.9 billion over the same period in 2022.

Deposits increased to Ksh1.7 trillion from Ksh922 billion in Quarter 3 2022 pushing up the balance sheet past the Ksh2 trillion mark to Ksh2.1 trillion, a record high for the region.
KCB Kenya accounts for the majority of the assets with Ksh548 billion invested outside Kenya. KCB subsidiaries in the region include;

KCB Tanzania (56% increase in revenue to Ksh4.5 billion)
KCB Uganda (63% growth in revenue to Ksh3.3 billion)
KCB Burundi (16% growth in revenue to Ksh1.2 billion)
KCB South Sudan (41% growth in revenue to Ksh1.9 billion)
TMB Congo (Ksh18.1 billion revenue in Q3 2023)


impressive results from kcb q3 2023