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KCB 2018 and Beyond
Rank: Veteran Joined: 8/10/2014 Posts: 984 Location: Kenya
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Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,606
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watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts
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Rank: Member Joined: 9/14/2011 Posts: 846 Location: nairobi
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wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Do you mean the NPLs and potential misadventure to Ethiopia?
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Rank: Member Joined: 9/14/2011 Posts: 846 Location: nairobi
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wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts
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Rank: Chief Joined: 1/3/2007 Posts: 18,155 Location: Nairobi
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Unless KCB can get a MAJORITY stake in a bank in ET, it should probably stay away. Though it may not do much harm to buy a small, if not allowed a majority, stake in a small bank to test the waters. Call it R&D. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. I bought KCB heavily the last few months and I am planning to buy heavily for the rest of the year. I will most probably put all my dividends from all my stocks plus any other float in KCB. This share is greatly undervalued. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/4/2009 Posts: 10,744 Location: NAIROBI
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VituVingiSana wrote:Unless KCB can get a MAJORITY stake in a bank in ET, it should probably stay away.
Though it may not do much harm to buy a small, if not allowed a majority, stake in a small bank to test the waters. Call it R&D. They are aiming for majority stake and willing to wait till law is ammended. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 984 Location: Kenya
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wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC.
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Rank: Chief Joined: 1/3/2007 Posts: 18,155 Location: Nairobi
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watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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Can someone put KCB's 208 Billion asset decline in perspective vis-a-vis what to expect moving forward - profitability, growth etc. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results @vvs - Do you feel this inflated the profits? Justifiably or unjustifiably? I heard the CEO saying they had provided even for loans that were not under risk like in a case where the same client had a Kshs. loan that was being serviced without issue and a dollar loan that was problematic. They provided for BOTH loans. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 8/10/2014 Posts: 984 Location: Kenya
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VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results Page 29 on the investor presentations. 107% IFRS coverage provided by collateral and provisions (116% coverage as per the regulations). This is after a high depreciation rate is applied to the collateral. Then, there are extra provisions for performing loans since the loan owner has another nonperforming loan.
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Rank: Member Joined: 3/15/2009 Posts: 361
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watesh wrote:VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results Page 29 on the investor presentations. 107% IFRS coverage provided by collateral and provisions (116% coverage as per the regulations). This is after a high depreciation rate is applied to the collateral. Then, there are extra provisions for performing loans since the loan owner has another nonperforming loan. That collateral value is quite tricky, lots of property that they can't offload for their "book value"
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Rank: Chief Joined: 1/3/2007 Posts: 18,155 Location: Nairobi
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watesh wrote:VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results Page 29 on the investor presentations. 107% IFRS coverage provided by collateral and provisions (116% coverage as per the regulations). This is after a high depreciation rate is applied to the collateral. Then, there are extra provisions for performing loans since the loan owner has another nonperforming loan. "NPLs are too high but they have already provided for them" Look at the Disclosures. Again. All NPLs have NOT been provided for. Just a portion per IFRS requirements. I was answering/commenting on the comment. 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: 18,155 Location: Nairobi
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MaichBlack wrote:VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results @vvs - Do you feel this inflated the profits? Justifiably or unjustifiably? I heard the CEO saying they had provided even for loans that were not under risk like in a case where the same client had a Kshs. loan that was being serviced without issue and a dollar loan that was problematic. They provided for BOTH loans. This is a tough one. There's a lot of subjectivity. If KCB can recover the non-provided portions then they are adequately covered but I prefer caution given the time it takes to sell assets in Kenya. It's better to provide as much as possible and if there is a recovery then write it back. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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watesh wrote:VituVingiSana wrote:watesh wrote:wukan wrote:watesh wrote:Ericsson wrote:Dividend payout to be low as they are still hungry for growth and chasing for acquisition and entry into Ethiopia.
This year they may probably hike dividend to ksh.4 Low payout is really hurting the share price but offering a good entry for long term investors. Equity PAT 48.8bn Market Cap - 174bn KCB PAT 61.8bn Market Cap - 135bn This is a big buying opportunity, considering that FY24 KCB suffered from very high interest expenses and above-average provisions. KCB has too many moving parts Even with that, valuing it 20% lower that Equity despite having 20% higher profits is criminal. NPLs are too high but they have already provided for them; any recovery will be more income. DRC has just started ramping up to claw some market share from Rawbank & Equity BCDC. No, KCB has NOT provided for all its NPLs. Please check the "Disclosures" under the FY24 results Page 29 on the investor presentations. 107% IFRS coverage provided by collateral and provisions (116% coverage as per the regulations). This is after a high depreciation rate is applied to the collateral. Then, there are extra provisions for performing loans since the loan owner has another nonperforming loan. Yeah. I heard the second one. The CEO was saying he even had a difficult time explaining to the directors why they need to provision for both. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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