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NBK quarter one 2013 profit before tax up slim 3pc
Rank: Chief Joined: 8/4/2010 Posts: 8,977
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NBK Q1 2013 results are out. Nothing amazing to write about. Same NPL spike noticed. QoQ NPL spike is an eye popping triple percentage. At this rate I wonder how banks are going to dig out of this NPL slippery road. If the trend keeps up in H1 results, iko shida... https://www.nse.co.ke/li...d&utm_medium=twitter$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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hisah wrote:NBK Q1 2013 results are out. Nothing amazing to write about. Same NPL spike noticed. QoQ NPL spike is an eye popping triple percentage. At this rate I wonder how banks are going to dig out of this NPL slippery road. If the trend keeps up in H1 results, iko shida... https://www.nse.co.ke/li...&utm_medium=twitter Rising profitability amidst rising NPLs is great.. Imagine the kind of profits banks will announce when these come down with interest rates!  Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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guru267 wrote:hisah wrote:NBK Q1 2013 results are out. Nothing amazing to write about. Same NPL spike noticed. QoQ NPL spike is an eye popping triple percentage. At this rate I wonder how banks are going to dig out of this NPL slippery road. If the trend keeps up in H1 results, iko shida... https://www.nse.co.ke/li...&utm_medium=twitter Rising profitability amidst rising NPLs is great.. Imagine the kind of profits banks will announce when these come down with interest rates! As long as profits clock in, all will be well. Losses and it's a whole different ball game...
Btw profits up with NPL up is also spotted in chingland -
http://www.ibtimes.com/c...fitability-2012-1157293
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Deleted ... Wazua admin has put it suitably
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Rank: Administration Joined: 11/19/2009 Posts: 679
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Dear @mwekez@ji
Our apologies. We created the thread from the first post; in so doing we were forced to insert a title and we did it badly.
The Wazua spirit
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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wazua wrote:Dear @mwekez@ji
Our apologies. We created the thread from the first post; in so doing we were forced to insert a title.
The Wazua spirit
Thank you @wazua moderator
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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NBK Q1 2013 performance is a poor show
1. While other banks have recorded double digit growth in Net Interest Income, NBK has recorded a decline (-4.12% y/y)
2. While other banks have recorded double digit growth in Profit Before Tax, NBK has recorded a marginal increase (+3.26% y/y)
3. We have severally pointed that the Government Securities Held To Maturity (HTM) are too high and loans are too low and NBK has just made the situation worse by increase the HTM and reducing loans.
4. The gross NPL spike of triple digit (+168.37%) is worrisome and the double digit gross NPL/Loans ratio (12%) is even more worrisome. Note other bank have single digit gross NPL/Loans ratio.
5. The core capital/total deposit ratio is really constrained and there is need to boost the core capital for this bank to accommodate increase in deposits. … They are calling a rights issue for this, and then invest in HTM, what kind of strategy is this!!! ... Or its the result of being strategyless¿!¿
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Something interesting on the cashflow statement.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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... that cost to income ratio is not interesting
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Cde Monomotapa wrote:Something interesting on the cashflow statement. That a result of the increase in deposits. Too bad this management does not know how to utilize them
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Well said mwekeza@ji. I had some anticipation when I saw Mr. Ahmed Munir appointed as MD, on the heels of Mr. Mohammed Hassan's earlier appointment as chair of the board. They have a deserved reputation for performance!
But NBK has reminded me instead of Warren Buffett's quip - Turnarounds seldom turn.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Is it that other banks are 'cooking' their results, or there is a big problem at NBK? I had thought the KANU era bad loans had been struck off the books, or what is eating this bank? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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muganda wrote:Well said mwekeza@ji. I had some anticipation when I saw Mr. Ahmed Munir appointed as MD, on the heels of Mr. Mohammed Hassan's earlier appointment as chair of the board. They have a deserved reputation for performance!
But NBK has reminded me instead of Warren Buffett's quip - Turnarounds seldom turn.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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The declining lending rates & yields in the money markets compressed their NIM...but things should improve going forward if only those NPL's will not come & haunt them...I'm expecting huge impairement charges in the P&L across the banking sector going forward....I think thats whats tempering optimism towards banks despite stellar Q1 earnings.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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dunkang wrote:Is it that other banks are 'cooking' their results, or there is a big problem at NBK?
I had thought the KANU era bad loans had been struck off the books, or what is eating this bank? By and large, other banks are okay ... hati yangu ... iko shida nbk inayohitaji suluhisho ya dharura
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Most banks have recorded an Increase in NPL with some having some huge exposures.....eg Equity bank...NBK has tried, especially when you look at NPL they are all covered, no exposures....The bank has no debt...Other banks have had to borrow huge amount to shore up liquidity....IMHO This bank is destined for greatness If it were not for the upcoming right Issue, where I think the prices might fall drastically,I would buy this stock today. '......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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mwekez@ji wrote:Cde Monomotapa wrote:Something interesting on the cashflow statement. That a result of the increase in deposits. Too bad this management does not know how to utilize them I find that interesting that a bank would consider customer deposits in the cashflow statement making me presume it is probably a bond sale?
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Rank: New-farer Joined: 10/10/2010 Posts: 51 Location: Nairobi
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selah wrote:Most banks have recorded an Increase in NPL with some having some huge exposures.....eg Equity bank...NBK has tried, especially when you look at NPL they are all covered, no exposures....The bank has no debt...Other banks have had to borrow huge amount to shore up liquidity....IMHO This bank is destined for greatness If it were not for the upcoming right Issue, where I think the prices might fall drastically,I would buy this stock today. @selah, well put. from where i sit its a transforming entity and save for the rights issue which will definately supress the price it remains a buy. The reduction in loans is a strategic move meant to reduce NBKs reliance on the personal unsecured loans which constitute about 70% of its loan bk. The increase in HTM is too minimal and could be explained outstanding government debts which are always converted to HTM debt atleast for NBK. there is talk of rebrading which is set for this week and i bet Munir will take the opportunity to outline his strategy.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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The bank's not doing well at the moment. But id classify this as "u cant buy whats popular and succeed". I think once the rights issue is done and dusted, this company is already down, the only way now can be up(or out) The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Cde Monomotapa wrote:mwekez@ji wrote:Cde Monomotapa wrote:Something interesting on the cashflow statement. That a result of the increase in deposits. Too bad this management does not know how to utilize them I find that interesting that a bank would consider customer deposits in the cashflow statement making me presume it is probably a bond sale? comrade cde, banks main operation is financial intermediation hence the increase in customer deposits was reflected as so in the cashflow statement. In addition, check the Balance Sheet and note the increase in customer deposits and net purchase of bonds (not bond sale). ... So far, Munir has displayed signs of running without a strategy. I wait to see his long overdue strategic plan during the coming rebranding
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NBK quarter one 2013 profit before tax up slim 3pc
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