Just coz BBK's loans go up does not mean the loan loss provisions go up by the same factor. The general provision (1% or so) has to be increased NOT the specific provision. That 'loss' comes about later if the loan quality decreases. ____* BBK has always been more prudent. We saw that in the 1990s... unlike KCB or other banks that are 'newer'.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

@kausha - I agree that its the NPLs that will produce the worst losses... Got the results but this weekend is crunch time for me to review KCB & BBK. As for loan/default management... I think BBK is among the better banks. They have much more experience & systems to follow up on folks who are likely to default. The level of provisioning does seem suspect vs last year. On the other hand,BBK took some tough steps in 4Q 2008 thus reducing the need for provision.
____ * I did not say loans for BBK went up BUT a generally an increase in loans does NOT equate to an increase in provisions (excepting general provisions).

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB