KCB is like an A student bringing home a C+ report.
The rights issue is needed because the capital adequacy is at 14.9%. KCB is taking a lot of deposits so it needs to expand its capital base to satisfy the CBK requirements.
It's a buy, buy for me. The west africans supported UBA and Ecobank let's do the same.

can anyone tell me how they think kcb will grow their top line? in 09 they really tightend their belts and cut costs....decided to do a retrenchment in 2010...so once all this is done where do u guys see the growth come in? what is kcb doing different to justify a higher return? btw issuing a note adds an interest cost element to the p&l that didnt exist prior...a 15 yr note at a conservative 10pct means an extra cost of 150mio a year in interest...so the subsidiaries invested in wud need to make at least 150mio per year to justify the investment...at the moment subs are makin a net loss of 100mio with no clear indication of a change in fortunes...i wudnt touch kcb with a ten trillion foot pole at the moment

@vvs. So ABSA is not the agent for Barclays Bank Plc…BBK management is autonomous? Most multinationals are running things from SA.

I wonder why most people think KCB can grow it’s top-line, its loans in 2009 were more than SCBK and BBK combined…their loan history speaks volumes…19 bn loaned in 2007…29 bn in 2008…27 bn in 2009…is this growth suddenly going to disappear this year (during expected 4% GDP growth) and head straight for Equity, SCBK and BBK…restructuring is at on full swing, inflation is low and expansion is through, MD said so himself, so expenses ratios will not be significantly higher…

btw did you guys notice insider loans…that’s something worrying me, almost reaching 18% of net loan book…who are these shareholders borrowings massive loans?

I like the analogy!

As for support... I was badly chomeka'd during the last Rights @25... so to be honest I am out of cash...

As for 'support'... invest in the best not based on nationality... I will have to decide whether my money will make me more money in KCB or other stocks...

Today, I am moving into KPLC... I see better growth for my cash there... [And I can be patriotic tho that is secondary!]

Good questions:
- Can anyone tell me how they think kcb will grow their top line?
Well, I think the loan growth will translate into higher earnings as long as KCB keeps bad debts down & maintains/expands NIM. Growth will come from the CORE business of lending. The rest (forex income, commissions) are all icing...
- The retrenchment is about 'rightsizing'... OK, I dont like to use these terms but KCB needs savvier/knowledgeable/friendlier employeess not the civil service wazee...
- I see KCB pushing for more slef-service options like ATMs & online banking
- what is kcb doing different to justify a higher return?
No idea! Yet... waiting for AGM
- KCB hopes Rw, Ug Tz become profitable in 2010. Sometimes it takes time to build up a brand.

Example: KenolKobil slowly built up its regional business by acquisitions & as new entrants. Ethiopia (80+ stations) still loses cash (or makes very little) but the expectations are high. After 7 years, KK's regional subsidiaries (current) ROI has exceeded Kenya!