maka wrote:obiero wrote:mugo2of3 wrote:lochaz-index wrote:littledove wrote:lochaz-index wrote:KulaRaha wrote:Hmmm....in an industry where most top players are struggling...
Too many cooks around...
My thoughts too.
Where is this increased lending coming from? Whether you look at it from the borrowers(increased premium 'k' and harsh business climate) or lenders (liquidity preference and a risk off approach)point of view it doesn't make sense unless there is something we ain't accounting for.
money from rights issue conducted last year
of important to note also is
HF is set to redeem Sh7 billion worth of its seven-year bond it issued in 2010
I have just had a peek at its disclosures section. Both its capital and liquidity ratios are thinning out very fast.
Bringing the bond redemption into focus would mean both its tier 1&2 capital will need replenishing... there seems to be more than meets the eye here. Increased lending doesn't add up.
@lochaz-index, do you mind putting the above in Layman-friendly language..
Fact is that they are playing a game dangerous in nature.. Very similar to the NBK one.. In other news, its the govt bonds that gave massive or significant income push
@Obiero which bonds agian?HF is never talked about in the FI circles...nothing to write home about.
@maka, they plan to redeem 7B corporate bond they issued in 2010. To prepare for that they bought GOK bonds last year at a time the rates were quite attractive. That helped push up interest income from gvt securities. Of course that will not repeat next year thus caution is the name of the game.
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