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Wai!! it is a blood bath, kcb, coop, equity down 9%
Rank: Elder Joined: 11/5/2010 Posts: 2,459
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obiero wrote:Spikes wrote:obiero wrote:MaichBlack wrote:watesh wrote:The NSE should remove that 10% limit in the banking stocks and let them fall kabisa. Then I can go in cheaply before the uncertainty ends
Relax. We have time. Next week they drop again. We might just make a killing. The current drops are not supported by logic @obiero place an offline sale order on Monday you become the first one to execute. The move by the president averages to a 19% cut on only one income line.. Banks PBT should not be impacted by more than 4% Not really. Equity takes a hit on interest income. But their interest expense shoots up by 350%. From Kes.16M daily to 60mn daily. While it's debatable whether lower rates will affect existing loans, when it comes to deposits, we are just counting the 21 days. In Sept 2016 alone, member will pay Kes. 2bn for interest expense. In 2015, they paid 6B for the whole year. In commission and fees, Equity earns the 2nd highest income from negotiation fees on loans. I.e. after forex. A slow down in lending equally hits them hard. If JM steers this ship to stability, he will become a legend. Sadly, the odds are badly stacked against him.
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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streetwise wrote:Co-op 2 bob Shindwe
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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FRM2011 wrote:obiero wrote:Spikes wrote:obiero wrote:MaichBlack wrote:watesh wrote:The NSE should remove that 10% limit in the banking stocks and let them fall kabisa. Then I can go in cheaply before the uncertainty ends
Relax. We have time. Next week they drop again. We might just make a killing. The current drops are not supported by logic @obiero place an offline sale order on Monday you become the first one to execute. The move by the president averages to a 19% cut on only one income line.. Banks PBT should not be impacted by more than 4% Not really. Equity takes a hit on interest income. But their interest expense shoots up by 350%. From Kes.16M daily to 60mn daily. While it's debatable whether lower rates will affect existing loans, when it comes to deposits, we are just counting the 21 days. In Sept 2016 alone, member will pay Kes. 2bn for interest expense. In 2015, they paid 6B for the whole year. In commission and fees, Equity earns the 2nd highest income from negotiation fees on loans. I.e. after forex. A slow down in lending equally hits them hard. If JM steers this ship to stability, he will become a legend. Sadly, the odds are badly stacked against him. Thanks for the explanation but it is half hearted.. Why would banks pay out interest on all deposits held
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Rank: Member Joined: 10/28/2008 Posts: 41
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obiero wrote:FRM2011 wrote:obiero wrote:Spikes wrote:obiero wrote:MaichBlack wrote:watesh wrote:The NSE should remove that 10% limit in the banking stocks and let them fall kabisa. Then I can go in cheaply before the uncertainty ends
Relax. We have time. Next week they drop again. We might just make a killing. The current drops are not supported by logic @obiero place an offline sale order on Monday you become the first one to execute. The move by the president averages to a 19% cut on only one income line.. Banks PBT should not be impacted by more than 4% Not really. Equity takes a hit on interest income. But their interest expense shoots up by 350%. From Kes.16M daily to 60mn daily. While it's debatable whether lower rates will affect existing loans, when it comes to deposits, we are just counting the 21 days. In Sept 2016 alone, member will pay Kes. 2bn for interest expense. In 2015, they paid 6B for the whole year. In commission and fees, Equity earns the 2nd highest income from negotiation fees on loans. I.e. after forex. A slow down in lending equally hits them hard. If JM steers this ship to stability, he will become a legend. Sadly, the odds are badly stacked against him. Thanks for the explanation but it is half hearted.. Why would banks pay out interest on all deposits held Exactly! Equity, for example, would only need to convert or introduce minimum balance requirements on interest-paying savings accounts. Voila!No more burden on the books. The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: Member Joined: 11/19/2009 Posts: 3,142
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A report by ApexAfrica Capital suggests that the banks most likely to be affected are Equity and Coop bank due to their largely retail oriented deposits given that their corporate accounts already earn high rates pegged on the T-bill while the banks least likely to be affected are KCB and DTB due to a small portion of interest earning deposits in the case of KCB and huge chunk of high net worth deposits and already paying high rates for these deposits in the case of DTB
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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If what I hear is right "the new law only applies to new loans going by today's statement by co-op" why is all this holla ballo about. Impact on banks interest income will take a while to go lower. First because banks will not refinance existing loans because that will be like shotting their @$$ez. And now back to the MPs who passed the law hoping to coushion themselves after 2017 when we kick them out, how will they benefit? Were they damn to realize this loophole. Now I get it, someone advised this to "Kamwana" no wonder he signed it. Back to my original question, why all the panick in sellers to bank stocks-are they damn ama naona vitu hakuna? If we give existing loans an average life of 3 years, by the time they are done with us, a new ammendment bill will have been crafted. @MB you are fine. Nothing will hurt your investments as long as existing loans are not affected. @Obiero, your mortgage remains as expensive as ever. @VVS you will keep paying top dollar on your loan even after 25th Sep. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Member Joined: 11/19/2009 Posts: 3,142
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A report by ApexAfrica Capital suggests that the banks most likely to be affected are Equity and Coop bank due to their largely retail oriented deposits given that their corporate accounts already earn high rates pegged on the T-bill while the banks least likely to be affected are KCB and DTB due to a small portion of interest earning deposits in the case of KCB and huge chunk of high net worth deposits and already paying high rates for these deposits in the case of DTB
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Rank: Member Joined: 2/24/2015 Posts: 154 Location: Nairobi
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mikegachunji wrote:A report by ApexAfrica Capital suggests that the banks most likely to be affected are Equity and Coop bank due to their largely retail oriented deposits given that their corporate accounts already earn high rates pegged on the T-bill while the banks least likely to be affected are KCB and DTB due to a small portion of interest earning deposits in the case of KCB and huge chunk of high net worth deposits and already paying high rates for these deposits in the case of DTB I agree with this analysis, but get ready to get attacked by the Equity groupies in 5, 4, 3, 2 ...
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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obiero wrote:streetwise wrote:Co-op 2 bob Shindwe Quote:COOP 7,200; HFCK 2,300; KQ 205,500 Come to think of it, @obiero is badly exposed in this new latest development. KQ has been shafting you for the longest. And now the two remaining portfolio of Coop and Hf are bank stocks which are going to tank badly going forward.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Impunity wrote:obiero wrote:streetwise wrote:Co-op 2 bob Shindwe Quote:COOP 7,200; HFCK 2,300; KQ 205,500 Come to think of it, @obiero is badly exposed in this new latest development. KQ has been shafting you for the longest. And now the two remaining portfolio of Coop and Hf are bank stocks which are going to tank badly going forward. Baptism of fire 
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Wai!! it is a blood bath, kcb, coop, equity down 9%
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