If you look at this two companies one is left to wonder why KCB seems to be lagging behind Equity in-terms of profitability& efficiency.Take for instance the following scenarios:-

Both companies borrowed more than 10B in the last Q equity had a marginal increase of about 2b in its borrowed fund but KCB which had not borrowed b4 had to borrow 10b at a go and I think this money was to boost its liquidity which increased by about 8%.

Staff cost for equity increased by about 1.2b but for KCB it increased by a massive 3B,operating expenses for KCB has been increasing at an alarming rate jumping from 9B to 14.2b within a single Q while equity jumped from 6b to 9b.

I think KCB fails to exploit its full potential it's a follower, it needs to be proactive like equity which tends to be lone ranger in most of its business strategies, hence becomes a leader while KCB always plays catch up.

Do not forget the restructuring was going on particularly on that quarter. i know several people who left at last quarter hence, their dues had to be settled and some compensation. This of course may have increased the staff costs. we should expect to see reduction in this in the coming quarter if not Q1 of 2012.

I wonder what that makes NBK...

Q4 will see kcb record higher returns vs member. This is as a result of gains frm staff cuts n less reliance on forex gains compared to member

tis bill wil nt see th light of day, bt if it does, it will b one diluted item with no proper legal backin n policy framework.tis is how th billions do th lobbying

Very interesting thread. KCB might be a sheep for now but definitely has a solid foundation(High Asset Value) and certainly going places.
I'd pick the lion as long term,member as short term-think it has now reached maturity stage!

Dont forget those who matter most - us shareholders - who received peanut dividends last year. The lion gave 1.25 while member gave /80 cts - over 50% less!

KCB being an older bank has longserving staff while EBL has a younger staff whom you can pay peanuts (then steal from it)

KCB Group has now the most attractive and largest capacity to accomodate new business (EAC & KCB S&L) coupled with the drive toward efficiency makes it the best investment choice in the banking sector.

...as deposits & loans do the same, SURGE. Rooar!!