I think KK is announcing in the first week of April.

@Evolve, there is no way that the EPS for the share(s) you hold in CFC Stanbic Bank is Kshs 12.1.

HINT: CFC Stanbic Bank is not listed on the NSE. It is CFC Stanbic Holdings Ltd which is listed. The latter owns the former and the EPS for the former gets diluted as it is consolidated into CFC Stanbic Holdings Ltd.

I can now see why the share price of the CFC Stanbic Holdings is not falling as I expected. Folks do not quite understand the intricacies. If I held the share, I would sell now before everyone cottons onto the fact that the EPS for both is NO more than 5.86. Surely, the sum of the parts is not greater than the whole.

dear fellow investor, kindly go thro this thread n other related ones n then u will hv ur answer, however, to hold will b my advise.
dislaimer:this is jus my personal advise, u decide

@Mwanahisa, you are a little bit wrong coz CSH is going to have the investments, financial services & banking arm while CSIH is going to have Cfc life & Heritage. I tend to agree with evolve reason being if you have ever been through an accounts consolidation process:
1. The parent normally takes up full expenses & revenue of the subsidiary through their income statement & only shows the minority interest through the Balance sheet. With high expenditure, the insurance biz absorbed most of the banks gains. Check.
2. Most holding co.s show earnings attributable to equity holders mostly on other disclosures or just after the income statement. Check CSH's
3. Though the eps attributable to equity holders in CSH after the demerger might be less than 12 but it is surely more than 6 & i'm saying this on the assumption that they don't own 100% of the bank coz if they do then i'm seeing an eps of over 10 & not 12 only coz of the holding co.s expenses.

IMHO current prices for CSH after the demerger is low but for CSIH at an introduction price of 6.15 is expensive.

@Mwanahisa - You are spot on on the EPS for the Bank but you fail to separate the two entities - CSH and CFCIH. Try doing a consolidation for CSH and see what you get.THis will guide you on what you expect. The EPS of 5.86 is for the composite (Banking + Insurance). Insurance is loss making and this is what has brought down the performance of the Group.

@Impunity, It's now past 11.00 a.m. Is it too early to start declaring your sources regarding KK to be "bure kabisa"?

@erifloss and Evolve, I am not a practising Accountant, but I am reasonably conversant in interpreting Consolidated Accounts.

I still stand by my words regarding CFC Stanbic Ban's EPS in the books of CFC Stanbic Holdings.

Let me break it down for you:

The earnings from CFC Stanbic Bank are all attributable to shareholders of the parent since CFC Stanbic Bank is wholly owned by CFC Stanbic Holdings Ltd.

Total earnings from the bank (which include those from CFC Financial Services and the proportion the bank owns in SIMS ) were Kshs 1,477,182,000. When this amount is "transferred" to the holdings company, you then have to "share" them out amongst all the shares in the holding company (NOT those for the bank), in this case 273,684,211 shares, amounting to an EPS of Kshs 5.40.

Assuming that the holding co. had no other subsidiary and had ZERO expenses, it means the EPS for CFC Stanbic Holdings Co. would be 5.40.

Are you with me so far?

Let me now turn to the Insurance Holding Company:

In 2010, CFCIH made an after tax profit of Kshs 260,014,000, of which only 225,741,000 was attribtable to the owners of the parent. Note this is not a loss as someone has alleged although in 2009, it did indeed make a loss.

To be fair, we shall note that the above profits only includes 8 months of the results of the Heritage group but 12 months of CFC Life Insurance, CFC Investments Ltd and of course for the Insurance Holding Co. itself.

The total number of shares in CFCIH in issue are 515,270,364. The weighted EPS for CFCIH has been reported as Kshs 0.54.

Using 2009 reported earnings, PEs for listed insurance companies current range from a low of 4.38 for Kenya Re to 9.93 for Jubilee. The PE for PanAfric Ins. using PAI 2010 earnings stands at 7.49. So we would expect PE for CFCIH would be no more than 10 hence a price of 5.40.

However, I will be generous and assume that it can trade at an incredibly high PE of 20 based on expected rapid future growth and hence a price of 10.80.

Today i put my money where my mouth is. Picked up some arm at 155. T minus 4. Speculating is enthralling. Will i be burnt or come out unscathed. Time will tell

Hey, I got myself some too. I intend to get a lot more if it stays at this price or if it declines. I am not speculating here. I am looking to keep it at least until their new capacity comes through next year.