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KCB HY 2011 results are here!
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VituVingiSana
#111 Posted : Tuesday, August 02, 2011 1:56:08 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
Cde Monomotapa wrote:
VituVingiSana wrote:
Cde Monomotapa wrote:
Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked smile
Please let me know if you work for any of the Listed Firms! I know where not to invest!

KCB (but u already knew that; not to invest)

LOL... I am already heavily invested in the Banking Sector! And KCB it is not Laughing out loudly
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Cde Monomotapa
#112 Posted : Tuesday, August 02, 2011 1:56:12 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
selah wrote:
Cde Monomotapa wrote:
@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help us understand smile


HF is a primarily a mortgage lender hence the need for adequate capital in my opinion HF is under capitalized so the Bond is really necessary for its growth.

KCB on the other hand is well capitalized to handle SMEs if the Loan was For S&L then it would be understandable but for SMEs I find that a waste.

You know I thought the reason for the right issue was to mitigate the company against the cost of borrowing.How wrong was I.

In H1 2011 KCB cut cost of FUNDS by 50% (not cost of borrowings)-that was part of what was intended with the RI, and it was delivered . Get the facts right 1st, and thanks for mentioning KCB S&L, u've got the point.
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Cde Monomotapa
#113 Posted : Tuesday, August 02, 2011 2:00:16 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
KCB Group is a regional out-fit (EAC) thus it needs a large capital base to support the business. Basic reasoning.
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Cde Monomotapa
#114 Posted : Tuesday, August 02, 2011 2:06:36 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
VituVingiSana wrote:
Cde Monomotapa wrote:
VituVingiSana wrote:
Cde Monomotapa wrote:
Life is stressful. I'd like to work for an organisation where my bonus isn't performance linked smile
Please let me know if you work for any of the Listed Firms! I know where not to invest!

KCB (but u already knew that; not to invest)

LOL... I am already heavily invested in the Banking Sector! And KCB it is not Laughing out loudly

smile
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selah
#115 Posted : Tuesday, August 02, 2011 2:24:09 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Cde Monomotapa wrote:
selah wrote:
Cde Monomotapa wrote:
@Selah..what's the difference with HF raising capital through its Corporate Bond? Aren't they both debt? Help us understand smile


HF is a primarily a mortgage lender hence the need for adequate capital in my opinion HF is under capitalized so the Bond is really necessary for its growth.

KCB on the other hand is well capitalized to handle SMEs if the Loan was For S&L then it would be understandable but for SMEs I find that a waste.

You know I thought the reason for the right issue was to mitigate the company against the cost of borrowing.How wrong was I.

In H1 2011 KCB cut cost of FUNDS by 50% (not cost of borrowings)-that was part of what was intended with the RI, and it was delivered . Get the facts right 1st, and thanks for mentioning KCB S&L, u've got the point.


As you have rightly said The RI cut the cost of funds in H1 but what the use if the management is going back to the same trend with this current loan come H2 this cost will reflect on its results.
'......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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Cde Monomotapa
#116 Posted : Tuesday, August 02, 2011 2:38:20 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
@Selah..there u have a point. From the Annual Report we will get to how much that "cheaper" money costs. KCB has in its history borrowed and repaid USD20M & 30M from IFC...thus it seems they have a credible relationship. The other attraction for such borrowing is the long tenures for repayment which helps support longterm lending like mortgages instead of using short-term/transitory deposits from current & savings accounts.
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Cde Monomotapa
#117 Posted : Tuesday, August 02, 2011 2:42:32 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Thus a combination of 12.5B cash from the RI and this 9B debt should provide a good capital base for KCB Group to do serious business in Kenya & the EAC as a whole.
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selah
#118 Posted : Tuesday, August 02, 2011 2:48:18 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@CDE I think the loan was necessary to shore up its liquidity...Its on dangerous levels 20.7% against the minimum statutory ratio of 20% but as I said earlier I dont know why the bank is investing for the future when its present is in dire need of an overhaul...For instance 12% growth in customer deposit shows the investment in growing the business is generating very little in customer growth.
'......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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the deal
#119 Posted : Tuesday, August 02, 2011 2:48:49 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Cde Monomotapa PRO KCB Group...LMAO.
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Cde Monomotapa
#120 Posted : Tuesday, August 02, 2011 3:00:29 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Laughing out loudly this KCB-IFC arrangement was concieved way back in April & approved in June so its no emergency smile as far as liquidity is concerned KCB as all other banks, has sufficient treasury papers to sell to address that. Looking at the H1 results has 7.4B available for sale investments. NB: A 12% rise in KCB deposits is a lot of billions.
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