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KCB HY 2011 results are here!
Rank: Chief Joined: 1/13/2011 Posts: 5,964
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That's why I said it's ideal.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked 
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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bartum wrote:Cde Monomotapa wrote:I think we should and add the other fellows who bought Cables post split at 100 (100*10=1,000!!!)  and guys who bought icdi now centum at 800 pre split.i got burnt. Lessons at NSE are learnt hardest way. Lakini sasa! Sisemi kitu. How did you get burnt its normal for a share to appreciate in value pre split but when buying you obviously factor in your returns post split. Why would you buy a share @800 if the split and dividends will not cover pre split buying price? '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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Cde Monomotapa wrote:Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked Please let me know if you work for any of the Listed Firms! I know where not to invest! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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VituVingiSana wrote:Cde Monomotapa wrote:Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked Please let me know if you work for any of the Listed Firms! I know where not to invest! KCB (but u already knew that; not to invest)
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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World Bank approves KCB loan to boost growth planhttp://www.businessdailyafrica....4/-/58rg8jz/-/index.htmlQuote:The World Bank has approved a Sh9 billion credit to Kenya Commercial Bank (KCB) to boost the lender’s mortgage and SMEs loan book.
The International Finance Corporation (IFC), World Bank’s private lending arm, indicated last week that it will formally announce the loan offer on August 9 in Nairobi.
The funds will also be used to finance KCB’s regional integration and expansion programme including a Sh450 million cash injection to its Rwanda subsidiary.
KES 9B is a notable sum to be injected in this tier 1 bank. If used for the reasons stated above, the bank will certainly be making steps from good to great(fundamentally)
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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mwekez@ji wrote:World Bank approves KCB loan to boost growth planhttp://www.businessdailyafrica....4/-/58rg8jz/-/index.htmlQuote:The World Bank has approved a Sh9 billion credit to Kenya Commercial Bank (KCB) to boost the lender’s mortgage and SMEs loan book.
The International Finance Corporation (IFC), World Bank’s private lending arm, indicated last week that it will formally announce the loan offer on August 9 in Nairobi.
The funds will also be used to finance KCB’s regional integration and expansion programme including a Sh450 million cash injection to its Rwanda subsidiary.
KES 9B is a notable sum to be injected in this tier 1 bank. If used for the reasons stated above, the bank will certainly be making steps from good to great(fundamentally) You know I dont get it why would KCB need a loan a few months after a right issue...am I missing something?...its not like its an infrastructural or industrial company that is capital intensive...if it was KQ or ARM I would have understood the rationale but its KCB for crying out loud. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help us understand
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Cde Monomotapa wrote:@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help me understand HF is a primarily a mortgage lender hence the need for adequate capital in my opinion HF is under capitalized so the Bond is really necessary for its growth. KCB on the other hand is well capitalized to handle SMEs if the Loan was For S&L then it would be understandable but for SMEs I find that a waste. You know I thought the reason for the right issue was to mitigate the company against the cost of borrowing.How wrong was I. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/3/2007 Posts: 18,223 Location: Nairobi
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Cde Monomotapa wrote:VituVingiSana wrote:Cde Monomotapa wrote:Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked Please let me know if you work for any of the Listed Firms! I know where not to invest! KCB (but u already knew that; not to invest) LOL... I am already heavily invested in the Banking Sector! And KCB it is not Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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selah wrote:Cde Monomotapa wrote:@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help us understand HF is a primarily a mortgage lender hence the need for adequate capital in my opinion HF is under capitalized so the Bond is really necessary for its growth. KCB on the other hand is well capitalized to handle SMEs if the Loan was For S&L then it would be understandable but for SMEs I find that a waste. You know I thought the reason for the right issue was to mitigate the company against the cost of borrowing.How wrong was I. In H1 2011 KCB cut cost of FUNDS by 50% (not cost of borrowings)-that was part of what was intended with the RI, and it was delivered . Get the facts right 1st, and thanks for mentioning KCB S&L, u've got the point.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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KCB Group is a regional out-fit (EAC) thus it needs a large capital base to support the business. Basic reasoning.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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VituVingiSana wrote:Cde Monomotapa wrote:VituVingiSana wrote:Cde Monomotapa wrote:Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked Please let me know if you work for any of the Listed Firms! I know where not to invest! KCB (but u already knew that; not to invest) LOL... I am already heavily invested in the Banking Sector! And KCB it is not
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Cde Monomotapa wrote:selah wrote:Cde Monomotapa wrote:@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help us understand HF is a primarily a mortgage lender hence the need for adequate capital in my opinion HF is under capitalized so the Bond is really necessary for its growth. KCB on the other hand is well capitalized to handle SMEs if the Loan was For S&L then it would be understandable but for SMEs I find that a waste. You know I thought the reason for the right issue was to mitigate the company against the cost of borrowing.How wrong was I. In H1 2011 KCB cut cost of FUNDS by 50% (not cost of borrowings)-that was part of what was intended with the RI, and it was delivered . Get the facts right 1st, and thanks for mentioning KCB S&L, u've got the point. As you have rightly said The RI cut the cost of funds in H1 but what the use if the management is going back to the same trend with this current loan come H2 this cost will reflect on its results. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@Selah..there u have a point. From the Annual Report we will get to how much that "cheaper" money costs. KCB has in its history borrowed and repaid USD20M & 30M from IFC...thus it seems they have a credible relationship. The other attraction for such borrowing is the long tenures for repayment which helps support longterm lending like mortgages instead of using short-term/transitory deposits from current & savings accounts.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Thus a combination of 12.5B cash from the RI and this 9B debt should provide a good capital base for KCB Group to do serious business in Kenya & the EAC as a whole.
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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@CDE I think the loan was necessary to shore up its liquidity...Its on dangerous levels 20.7% against the minimum statutory ratio of 20% but as I said earlier I dont know why the bank is investing for the future when its present is in dire need of an overhaul...For instance 12% growth in customer deposit shows the investment in growing the business is generating very little in customer growth. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Cde Monomotapa PRO KCB Group...LMAO.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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this KCB-IFC arrangement was concieved way back in April & approved in June so its no emergency as far as liquidity is concerned KCB as all other banks, has sufficient treasury papers to sell to address that. Looking at the H1 results has 7.4B available for sale investments. NB: A 12% rise in KCB deposits is a lot of billions.
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KCB HY 2011 results are here!
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