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NBK 3Q 2012 Results

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VituVingiSana		#21 Posted : Thursday, November 22, 2012 2:50:45 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		selah wrote: @mwekez@ji "...I still insist it's not a Loss..." Sawa. It's all good though believe what you will but @mwekez@ji is correct that the 3Q (not 1Q or 2Q) shows up as a loss. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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Aguytrying		#22 Posted : Thursday, November 22, 2012 4:39:00 PM
Rank: Elder Joined: 7/11/2010 Posts: 5,040		King G wrote: This new guy is just cleaning the cooked books left by Marambee and start next year on a clean slate; what Muriuki did at coop when he took over from Mureithi in 2001. so he's doing the dishes The investor's chief problem - and even his worst enemy - is likely to be himself
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FUNKY		#23 Posted : Thursday, November 22, 2012 4:47:01 PM
Rank: Veteran Joined: 4/30/2010 Posts: 1,635		http://www.bloomberg.com...lunge-nairobi-mover.html
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hisah		#24 Posted : Monday, November 26, 2012 6:09:58 PM
Rank: Chief Joined: 8/4/2010 Posts: 8,977		hisah wrote: selah wrote: I am impressed buy its performance and looking at its books I think Am going to buy some from this counter. The bank has registered growth in its income streams and given the Bank used deposits to generate the income not forgetting investing in new softwares and branches,it's a wander they made the profit in such a tight market. At least they represent the bonds haircut accurately unlike the rest who chose to do some gimmicks with their bond portfolios when the interest rates went to the sun... This is what I meant - Quote: IAS 39 provides guidelines for how commercial banks are supposed to classify treasury securities in their books. It states that commercial banks should observe the "mark-to-market" principle, which requires them to recognise in their books any capital losses incurred as a result of holding treasury bonds meant for trading. Quote: “Liquidity squeeze by banks led to moving of securities from trading book to hold to maturity to avoid recording huge capital losses,” says the CMA memo. Quote: As the Central Bank Rate (CBR) rose from six per cent to 18 per cent within a space of six months, commercial banks found themselves holding treasury bonds whose value had declined by large margins due to the inverse relationship between interest rates and the value of fixed income securities. The bankers’ lobby, Kenya Bankers Association (KBA), however, strongly defended the sale-buy-back transactions. KBA chief executive Habil Olaka said the deals were done “in conformity” with international accounting standards. Yep, creative accounting this... Only SCBK and NBK followed the rules by applying mark-market to indicate the bond portfolio haircut while the rest applied funny gimmicks with the blessings of CBK... http://www.businessdaily...8/-/1sl278/-/index.html $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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guru267		#25 Posted : Tuesday, November 27, 2012 9:41:37 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		hisah wrote: Yep, creative accounting this...Only SCBK and NBK followed the rules by applying mark-market to indicate the bond portfolio haircut while the rest applied funny gimmicks with the blessings of CBK @hisah the blessing for these methods comes fromfrom all the relevant bodies including CBK, IFAC, ICPAK! Government bonds unlike other securities are considered risk free if one holds until maturity! So if i buy a bond and its price crashes all i have to do to recover my initial investment is wait for it to mature with zero losses! This is why banks are allowed to change the classification of their treasury securities as it poses no risk to shareholders either way! Mark 12:29 Deuteronomy 4:16
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hisah		#26 Posted : Tuesday, November 27, 2012 9:48:10 AM
Rank: Chief Joined: 8/4/2010 Posts: 8,977		guru267 wrote: hisah wrote: Yep, creative accounting this...Only SCBK and NBK followed the rules by applying mark-market to indicate the bond portfolio haircut while the rest applied funny gimmicks with the blessings of CBK @hisah the blessing for these methods comes fromfrom all the relevant bodies including CBK, IFAC, ICPAK! Government bonds unlike other securities are considered risk free if one holds until maturity! So if i buy a bond and its price crashes all i have to do to recover my initial investment is wait for it to mature with zero losses! This is why banks are allowed to change the classification of their treasury securities as it poses no risk to shareholders either way! The major concern is the off market SBB trades. This can easily cause distortions. CMA is right to raise a red flag about it. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Pesa Nane		#27 Posted : Tuesday, November 27, 2012 1:35:52 PM
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c		guru267 wrote: @hisah the blessing for these methods comes fromfrom all the relevant bodies including CBK, IFAC, ICPAK! Government bonds unlike other securities are considered risk free if one holds until maturity! So if i buy a bond and its price crashes all i have to do to recover my initial investment is wait for it to mature with zero losses! This is why banks are allowed to change the classification of their treasury securities as it poses no risk to shareholders either way! Agreed, That's creative accounting BUT are banks bound to hold the bonds to maturity once reclassification is done? Pesa Nane plans to be shilingi when he grows up.
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youcan'tstopusnow		#28 Posted : Monday, December 03, 2012 9:17:06 AM
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa		Interest expenses have also killed Ecobank this year. They have made a loss in each and every Quarter this year Amount in Kshs. millions Q1 - (377,071) Q2 - (234,177) Q3 - (307,423) Loss for 9 months is 918.7 million. This time last year they had a 73 million profit. For the FY 2011, they made 202 million profit. For the 9 months, Interest Expenses were up 178 percent to 2 Billion resulting in N.I.I. declining 83 percent to 772 million. GOD BLESS YOUR LIFE
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