Rank: Chief Joined: 1/13/2011 Posts: 5,964
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invest0r wrote:mwanahisa wrote:After observing KCB's results today, I am doubly impressed by CoopBank. They made virtually the same after tax profit in Q1 with a smaller balance sheet. CoopBank - Kshs 1,640,742,000 (92% of KCB's figure of 1,774,235,000) with a Total Assets base of Kshs 169,452,916 (63% of KCB's 270,943,498,000).
Hopefully KCB will correct this anomaly in the coming months. I have no doubt that Equity will top this profit figure with an even higher figure than that for KCB. I am heavily in this behemoth called KCB, so it had better.
I am now on the lookout to acquire me some Coop having sold out out prior to Q1 results at circa 20. I also made an interesting speculative play on it when it dropped to the low 16s and exited at 18.30 - 18.50. Now another opportunity beckons! Please note that the current tax provision for coopbank is less than 30% while that of KCB is 30%. If you check their Profit Before Tax, KCB has achieved 23% more than coop. The bigger balance sheet should tell you the potential of KCB is HUMONGOUS The lower tax-rate on Co-op is because of it being a "new" listing. Same applies to Equity Bank which has been enjoying a 20% corporate tax for the last 5 years. Equity's should be over this year.
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