@Kenyainvestor,
If I am to choose btw KCB and member, I will go for KCB but at a lower price cira 20bob
(i) The Equity biz model on SME from my point of view is not sustainable on the long term. It will consistently NPL profile because unfortunately SMEs tend to have a high failure rate. I understand equity gives loans to buy matatus and taxi cabs !
(2) On regional expansion to grow profits KCB is well ahead, the regional branches have turned from loss, break even position to profitability. Be aware that regional expansion is always at a cost. My Nigerian Bank UBA return losses in Uganda and Kenya, that does not mean it will not be profitable. Ecobank that is now a success had a similar experience. I do not think Equity will be different.
However I do not have any plan in my life time to buy either KCB or Equity shares. With 39,500 units in KCB and 10,000 units of Equity I am sitting on as part of my holding in your NSE I am okay with that. This returned a handsome dividend of Ksh 51,000 out of ksh 243,000 dividend income realised to date in 2011.
Mind you I started small and consistently from 2004.
Please do not be suprised about 39,500 holdings it is because of 10 for 1 split in 2006.
I only got 2600 units then it balooned to 26,000 units.
I did not even participate in the last KCB rights as I rather picked some KPLC to avoid
over exposure to banking stocks, because as I role I do not intent to hold more than 20% of my portfolio in the financial sector.
Call it my 2 cents no problem. Bear in mind that I am a non resident investor and income (high dividend yield stocks) is my principal investment objective in NSE
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .