Quite an interest.

Totally agree with you @vvs!!!

Reducing LLP by such a huge margin in the current environment makes absolutely no sense! The accountants must be graduates of Utalii college!!!

All that matters is PR, until nbk falls over

For the serious investor [investing more than a few KES] does the candlestick work?

1) Low level of float
2) Preference Shares - There is a dividend due - or so I think - when a dividend is paid to Ordinary Shareholders. This reduces the PAT Attributable to Ordinary Shareholders.
3) The LLP is 1% of their Loan Book. That means NBK is telling us they have negligible SPECIFIC provisions. If banks like DTB and I&M [with very tight lending to a small customer base] OR banks like SCBK & BBK [low NPLs, tight lending standards] have specific provisions then is NBK a superstar? I think not.
4) UNAUDITED. The auditor will have to look at the NPL and LLP. I doubt they will sign off on 1% LLP.

Anyway, I will stay away from NBK.

'The Dar Skendo Brigade'

The Income Statement is clear that loan loss provisions increased from 125 to 330M. The rest is secured.

That RMB 'monopoly' will ring up the FX income. Stay tuned...

NPLs are best assessed at FY. That I agree. There must have been a recovery of circa 1B @vvs. Look at the 'other income'.

Are we reading the same results with Sunil? The 123% increase in PAT is largely driven by 1.4billion increase in total income while total expenses remained at last year's level. There is no reduction in loan loss provision. infact they have provided for 332m from last years 125m.

Excellent results to me...

That's the big one.

@Monomotapa
Other Income can also include profits from the sale of properties. The PPE has reduced by 800mn. Extraordinary (or one-time) gain. Compare the reduction in PPE vs the Other Income.

The cashflow statement also references sale of a property. Where would this income show up?

@xxxxx
The Other Income is up. The LLP is down from 1.9bn to 0.7bn.
General Provisions (per CBK guidelines) are 1% of the Loans. The loans are about 71bn. The LLP is 729mn.
So is NBK's book that good that Specific Provisions are only 19mn? That means they are doing better than DTB in this department.

Sunil also mentioned in another tweet that the LLP:NPL ratio for NBK at 11% (32% Coop, 41% I&M, 49% KCB, 53% Equity, 63% BBK, 92% DTB) is the lowest among listed banks.

Anyway, we can revisit this for FY 2015.
This is like KQ for me. I watch it but I am not invested in it.

I used to be a KQ defender - cognitive dissonance . Someone [not sure if it was @Njunge or @kausha] used to post a 'deeper' analysis. And s/he was right. So when folks question financial 'magic' I pay attention.

On this matter, I believe Sunil [who I follow on Twitter] who has made some good calls. Plus he provides data with his analysis.

Warren Buffett: "When the tide goes out, we shall know who was swimming naked"