statutory ratios with core capital to total deposits at 18.6% (CBK minimum – 8.0%),
core capital to total risk weighted assets at 20.9% (CBK minimum – 8.0%),
total capital to total risk weighted assets at 21.0% (CBK minimum – 12.0%) and
liquidity at 38.7% (CBK minimum – 20.0%).

9 months’ profits this year are above full year profits for 2009. IMO this should sustain a price of 23-25 going forward. There is a lot of room for growth going by the ratios.

It remains undervalued because with a Kshs 244 billion balance you would expect more. Dr. MOO that a B+ from an otherwise A student.

@mkonomtupu, true, their B/sheet at 244B is really roaring and the statutory ratios are within acceptable levels.Their TA over TL has improved from 1.14 to 1.18, which could mean their loan book is doing well. Gearing ratio(D/E) has also come down from 87.98 to 84.9.
@Mwanahisa i think their forward P/E is way above 10. If you project the 9months profits, assuming that the last quarter will take the trend of the last 9 months PATwise, you are lookin at an EPS of 2.027 (current EPS for 9 months being 1.52 i.e 4.495B/2.95B shares.
Now at the Forward EPs of 2.027 at the current price of 22.75, you are lookin at a P/E of 11.22.
But i agree with you that it's still a buy at the current levels.
If you give it the current sector PE of 17.23, you are looking at a price of 34.92, by the time they release their full year Accounts in March.
Now, that's a cool 53.5% in 5 months!!!!!

To answer your first question, I can only submit that the KCB Finance guys made an error. I indicated as much on another thread. The correct fully diluted EPS should be 1.52. Just divide the PAT attributable to ordinary shareholders by the number of ordinary shares (including those from the rights issue).

On the other hand, the EPS figure of 2.03 is based on the weighted average number of ordinary shares in issue during the reporting period. I am fully in agreement with you that Diluted EPS should be lower than the Basic EPS.

As to your second point, I honestly do not understand the question. I am not aware of any intention to issue new ordinary shares.

Waiting for EB results!

When are they due?

It is the mother of all banks.

Kcb return on assets is pathetic

Sounds like the same stuff he told us last time... [The Rights Issue at 25/-]

@qw i have a chunk of the mammoth btwn 17.75 and 19 ... I bought, not coz its a star performer but coz it was undervalued. Nic and dtb are able to achieve over 1B profits with a fraction of kcb's assets. These guys owe the shareholder a better performance. Haki yetu haki yetu.

Eveready never seem to follow the charts...

I think they have performed reasonably well. All that is required of them is to work on their return on assests. From the Q1 results they have been consistent in subsequent quarters. I expect over 30% growth FY results. The last quarter we will use more utililization of the rights money. Improved performance from branches in Sudan, Ug, Tz and Rwanda should boost the Groups full year performance. I feel KCB should be trading at 26 now and about 30 at the time of FY announcement. at 23 it is a strng buy.