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CSH and CFCIH de-merged proforma financials
sparkly
#1 Posted : Friday, August 06, 2010 12:00:21 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
CFC has a book value of 71. Based on 2009 accounts, new CSH (bank) will have a book value of 64 while CFCIH will have a book value of 6. Liberty paid 6.80 per share of CFCIH totaling to appx 800m. Part of the 800 to be used to pay off debts, the rest to be invested in govt securities but later to be used to grow the business.
Life is short. Live passionately.
PKoli
#2 Posted : Friday, August 06, 2010 9:56:30 AM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
@sparkly

Based on the book value info what should be the fair value of CFC? If you compare it with its peers like DTB?
VituVingiSana
#3 Posted : Friday, August 06, 2010 11:23:04 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
Careful... CFC's book value already has a premium coz of goodwill paid for Stanbic's acquisition...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
PKoli
#4 Posted : Friday, August 06, 2010 11:53:30 AM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
@VVS

What was the premium goodwill paid by stanbic?
VituVingiSana
#5 Posted : Friday, August 06, 2010 12:13:27 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,136
Location: Nairobi
PKoli wrote:
@VVS
What was the premium goodwill paid by stanbic?
I need to check out the Annual Report which I do not have on hand... Remind me later on...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
PKoli
#6 Posted : Friday, August 06, 2010 12:20:05 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
Thanks VVS

I surely will. Me thinks demerger will bring more value. I see the bank trading at over 100 and the insurance above 20.
the deal
#7 Posted : Friday, August 06, 2010 1:37:11 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
http://www.sharenet.co.z...news_disp.php?id=471028
Cfc Stanbic Bank(bank only) 58% Jump in profits...
PKoli
#8 Posted : Friday, August 06, 2010 1:47:10 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
the deal wrote:
http://www.sharenet.co.za/v3/news_disp.php?id=471028
Cfc Stanbic Bank(bank only) 58% Jump in profits...


Good results. Let us wait for the stock to hit 100
youcan'tstopusnow
#9 Posted : Friday, August 06, 2010 2:06:25 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
It only has 19 branches?
GOD BLESS YOUR LIFE
PKoli
#10 Posted : Friday, August 06, 2010 6:04:50 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
VituVingiSana wrote:
PKoli wrote:
@VVS
What was the premium goodwill paid by stanbic?
I need to check out the Annual Report which I do not have on hand... Remind me later on...


Just incase you forget, I remind you about book value for CFC. You were to look at the 2009 Annual accounts. I will appreciate
trizher
#11 Posted : Friday, August 06, 2010 6:56:33 PM
Rank: New-farer


Joined: 5/23/2010
Posts: 95
Location: Tikrit - IRAQ
superb results. . . . .next stop is @ 110-115 range. . .
Letz make this piaper!!
...We do it for the $$$$!!
sparkly
#12 Posted : Friday, August 06, 2010 7:20:00 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
PKoli wrote:
VituVingiSana wrote:
PKoli wrote:
@VVS
What was the premium goodwill paid by stanbic?
I need to check out the Annual Report which I do not have on hand... Remind me later on...


Just incase you forget, I remind you about book value for CFC. You were to look at the 2009 Annual accounts. I will appreciate

@pk goodwill in cfc books is sh 10.4 B. Sh 9.3 B in proforma BS of the bank and Sh 1.2B in proforma BS of CFCIH. Difference arising from an adjustment for share swap with ALCS during the restructuring.
Life is short. Live passionately.
Scubidu
#13 Posted : Sunday, August 08, 2010 7:28:50 PM
Rank: Veteran


Joined: 9/4/2009
Posts: 700
Location: Nairobi
Interesting observations on CFC Stanbic Bank. The notes in CFC Stanbic Bank annual report defines Tier 1 (core capital) as follows:

Tier 1 capital consists of shareholders’ equity comprising paid up capital, share premium and retained earnings less intangible assets, goodwill and investments in subsidiary institutions and equity instruments of other institutions.

Taking a look at the restructuring & demerger circular the pro-forma consolidated statement of financial position of CFC Stanbic Holdings (CSH) on page 23 we can get the following numbers.

Total Equity = 17,654 million
Less:
Statutory loan loss reserve = ?
Intangible assets = 1,884 million
Goodwill = 9,350 million
Investment in subsidiaries = 56 million
Equity instruments of other institutions = 0

Natural assumption is that core capital is then 6,364 million
Deposit liabilities = 82,534 million

Is the bank undercapitalized?
How will it raise core capital?
What effect will expanding loans or government securities have on the core capital ratio?
What impact will this have on the bank’s deposit rates in the short term?
What impact will this have on the bank’s interest margin and the bank’s reliance on interest income vs non interest income?

Just thinking out loud.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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