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KCB FY 2016 earnings flat +1%
Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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watesh wrote:Ericsson wrote:guru267 wrote:CIC and KCB had PAT hit by net monetary losses... This looks likely to affect other players as well.... @VVS I just hope we at least get the same dividend on Kenre. Monetary losses will be majorly for companies that have operations in south sudan e.g equity bank, cooperative bank, Britam, UAP KCB will take the biggest hit....a large chunk of their subsidiary business is from SS. At least Equity went to DRC but even there election wars can break out anytime after Kabila postponed the event indefinitely That is for all the mentioned firms. James Mwangi even mentioned a year ago that SS is really bleeding them. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Yowel wrote:These results are interesting. On the balance sheet, customer deposits growth of only 6% against public notion that with the rate caps and tier three banks struggling, funds would have naturally gone to the big banks. Balances to other banks down 43% (who are funding the small banks since also their deposits have also stagnated?), growth in deposits in 2014/2015 was only 13%.
When you look at lending, higher by 11%, in 2014/2015 was 22% which is obvious from the capping law.
In terms of cash, there are questions not answered. @muganda, any chance we can see the cash flow statement.
Flight to quality has been largely a myth for 2016. It was evident in 2015 when Dubai and Imperial bank went under but insignificant thereafter. The big boys have had a slowdown in the deposit growth rate and their QoQ 2016 numbers bear witness to it. I suspect some small time depositors gave the banking sector a wide berth all together in the wake of Chase Bank developments. In addition, there is not enough liquidity/savings in the economy to go around...more like a de-saving trend. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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KCB Group CEO Joshua Oigara while being interviewed on the trading bell (Thursday 16 March)said KCB now has adequate capital and funding that for the next three years. Rights issue to raise capital is out. This week Thursday it will John Gachora CEO of NIC Bank who will be at the trading bell Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 976 Location: Kenya
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KCB Group total deposit growth +6% which is 24bn while KCB Kenya +11% which is 39bn growth. Major decline in deposits in KCB subsidiaries in other countries. South Sudan effect or what?
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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watesh wrote:KCB Group total deposit growth +6% which is 24bn while KCB Kenya +11% which is 39bn growth. Major decline in deposits in KCB subsidiaries in other countries. South Sudan effect or what? South Sudan is due to devaluation of the currency and hyperinflation Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...911620-x5erse/index.htmlWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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The truth seems to be finally setting in on SS. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Towards the goal of financial freedom
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique.  Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Pesa Nane wrote:Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Angelica _ann wrote:Pesa Nane wrote:Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk? John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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@Spikes Coca Cola Davis and Shirtliff are already in Somalia Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Ericsson wrote:@Spikes
Coca Cola
Davis and Shirtliff are already in Somalia Davis are not is Somalia. Coke. You want to compare a manufacturing plant with a banking hall in foot traffic? Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Pesa Nane wrote:Ericsson wrote:@Spikes
Coca Cola
Davis and Shirtliff are already in Somalia Davis are not is Somalia. Coke. You want to compare a manufacturing plant with a banking hall in foot traffic? Manufacturing is even worse in terms of possible loss In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 8/10/2014 Posts: 976 Location: Kenya
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Spikes wrote:Angelica _ann wrote:Pesa Nane wrote:Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk? A bank would be a huge target for broke terrorist who want money. They will assume there is a huge pile of dollars just sitting in there that they can smash and grab. KCB should find a better strategy outside Kenyan subsidiary. None of them is past Ksh500m in profitability.
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Rank: Chief Joined: 1/3/2007 Posts: 18,118 Location: Nairobi
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Spikes wrote:Angelica _ann wrote:Pesa Nane wrote:Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk? As pointed out and articulated well by either @Pesa8 or @Ericsson, there's huge regulatory risk for KCB esp with European and US regulators. Why take the risk? The potential profits aren't enough to cover blacklisting for USD or Euro transactions, on-lending for US or EU funds, etc. Some US/EU shareholders may have to dispose of their shares if KCB is flagged or cited for non-kosher transactions. There is immense potential but that might be a few years into the future. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,541 Location: nairobi
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VituVingiSana wrote:Spikes wrote:Angelica _ann wrote:Pesa Nane wrote:Ebenyo wrote:[quote=Ericsson] KCB to close South Sudan branches due to war shocksGood move to cut out the fat and loss making ventures and remain with the lean and profitable ventures http://www.businessdaily...11620-x5erse/index.html[/quote] a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique. Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile + Security risks (more of Kebab than theft) + Kenya/KDF relationship + Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar) + Flagging by major intermediary banks + Political risks (Policy in Som changes daily, sometimes hourly) + Huge currency risks There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk? As pointed out and articulated well by either @Pesa8 or @Ericsson, there's huge regulatory risk for KCB esp with European and US regulators. Why take the risk? The potential profits aren't enough to cover blacklisting for USD or Euro transactions, on-lending for US or EU funds, etc. Some US/EU shareholders may have to dispose of their shares if KCB is flagged or cited for non-kosher transactions. There is immense potential but that might be a few years into the future. Burukenge analysis.. Ever heard of international blacklist for prohibited persons and business. The mafia are controlled by the said UN list. KCB can go to Somalia and do clean business. It's security factors that has delayed its entry
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Spikes wrote:Ericsson wrote:Spikes wrote:muganda wrote:But a proposed final dividend of 3/= per share is a lucrative pay-out of 11.5% Nothing lucrative there.Just preparing you for rights issue.This is purely a bait. Hakuna rights issue Wewe meza mate watu wakila nyama Good lucky. I know the market is hyped it can rise as high as 40/- 40 ni ndoto za mchana.. Lakini 30 is reality There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period! It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Spikes wrote:obiero wrote:Spikes wrote:Ericsson wrote:Spikes wrote:muganda wrote:But a proposed final dividend of 3/= per share is a lucrative pay-out of 11.5% Nothing lucrative there.Just preparing you for rights issue.This is purely a bait. Hakuna rights issue Wewe meza mate watu wakila nyama Good lucky. I know the market is hyped it can rise as high as 40/- 40 ni ndoto za mchana.. Lakini 30 is reality There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period! It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing! Shots fired.... possunt quia posse videntur
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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LOL...I like it when some jamaas get humbled..Leo atakamata humble pie for supper.. Spikes wrote:
There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period!
It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing!
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KCB FY 2016 earnings flat +1%
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