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