Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Pesa Nane wrote:Aguytrying wrote:PKoli wrote:Aguytrying wrote:VituVingiSana wrote:@Aguy - I had a look (again) at NIC's NPLs, its Provisions and its Provisions/NPLs. I suggest you do so again.
A pity I&M hasn't released results so we can compare the 3 Tier 2 banks. I have seen the NIC Non perfoming loans. Its ground shaking. No wonder market has punished the share. DTB compared, its a no brainer vs NIC. good regional spread. low NPLS. The only real competitior now is vs I&M. But DTB gets the nod from coz of Aghakan management. Profits wise. they were neck and neck last year. At 180, i should've been sweeping DTB off the shelf. Pre and post bonus ill be looking for opportunities to strike. I&M is really good. Better div yeild, similar aggression, interesting geographic spread. (NIC 97% profits from Kenya!) To think DTB 3-4 years ago was at 90.00. This is a share that will just keep growing and giving decent consistent returns to share holders. @Aguy, What was the main cause of increased NPLs for NIC? Could be their SME portfolio, In 2015 they went aggresively into SME. There's a statement to that effect on this thread. Its a good share, i expect the NPLS to be sorted out eventually. Where DTB and I&M edge NIC out for me is geographical spread and the loan book "cleanliness" @sparkly. DTB and I&M are similar but the geographical spread is different, with I&M present in Mauritius and Rwanda that DTB isn't. While DTB is present in Uganda and Burundi that I&M isn't. I&M also has an appetite for acquisitions and mergers more than DTB. while DTB retains more cash for expansion as highlighted by the lower dividend payout and does rights issues more. Then lastly they are two different entities and are bound to try slightly different strategies in the future so naturally one may succeed more than the other. @Boris. 30-40% is okay. Insurance is included in this. IF jubilee ever comes down (highly unlikely) I will replace DTB with it, because it owns around 10% of DTB. Quote:Gross NPLs were up drastically to KES 14.4BN in 2015 from KES 6.9 BN in 2014 as Loss provisions increased dramatically by 402.1% to KES 1.7 BN attributed to the bank’s exposure to the fallen Imperial Bank (KES 306 MN provision) and KES 840
MN from its top 5 borrowers in the trade and manufacturing sectors of the economy.
This surge in NPLs drove the bank’s Gross NPL ratio 467bps y-o-y to 11.0% which is significantly higher than the average banking sector NPL Ratio of about
5.7%, underlining a much higher NPL portfolio compared to the banking sector average.
Its NPL coverage suffered a massive 4,458bps drop to 21.0%, which is much lower than the average banking sector NPL Coverage Ratio of about 40.5% underlining
under-provisioning for its NPL portfolio. Any hopes of getting their money from Imperial Bank? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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