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KCB FY 2016 earnings flat +1%
Spikes
#51 Posted : Wednesday, May 03, 2017 11:24:29 AM
Rank: Elder

Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
Angelica _ann wrote:
Pesa Nane wrote:
Ebenyo wrote:
[quote=Ericsson]KCB to close South Sudan branches due to war shocks

Good move to cut out the fat and loss making ventures and remain with the lean and profitable ventures

http://www.businessdaily...11620-x5erse/index.html[/quote]

a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique.


Shame on you Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile
+ Security risks (more of Kebab than theft)
+ Kenya/KDF relationship
+ Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar)
+ Flagging by major intermediary banks
+ Political risks (Policy in Som changes daily, sometimes hourly)
+ Huge currency risks


There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole smile smile smile

And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk?
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
Ericsson
#52 Posted : Wednesday, May 03, 2017 11:31:09 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@Spikes
Coca Cola
Davis and Shirtliff are already in Somalia
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Pesa Nane
#53 Posted : Wednesday, May 03, 2017 4:41:46 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Ericsson wrote:
@Spikes
Coca Cola
Davis and Shirtliff are already in Somalia


Davis are not is Somalia.
Coke. You want to compare a manufacturing plant with a banking hall in foot traffic?
Pesa Nane plans to be shilingi when he grows up.
Angelica _ann
#54 Posted : Wednesday, May 03, 2017 5:13:33 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Pesa Nane wrote:
Ericsson wrote:
@Spikes
Coca Cola
Davis and Shirtliff are already in Somalia


Davis are not is Somalia.
Coke. You want to compare a manufacturing plant with a banking hall in foot traffic?


Manufacturing is even worse in terms of possible loss smile smile smile
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
watesh
#55 Posted : Wednesday, May 03, 2017 5:36:03 PM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
Spikes wrote:
Angelica _ann wrote:
Pesa Nane wrote:
Ebenyo wrote:
[quote=Ericsson]KCB to close South Sudan branches due to war shocks

Good move to cut out the fat and loss making ventures and remain with the lean and profitable ventures

http://www.businessdaily...11620-x5erse/index.html[/quote]

a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique.


Shame on you Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile
+ Security risks (more of Kebab than theft)
+ Kenya/KDF relationship
+ Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar)
+ Flagging by major intermediary banks
+ Political risks (Policy in Som changes daily, sometimes hourly)
+ Huge currency risks


There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole smile smile smile

And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk?

A bank would be a huge target for broke terrorist who want money. They will assume there is a huge pile of dollars just sitting in there that they can smash and grab.
KCB should find a better strategy outside Kenyan subsidiary. None of them is past Ksh500m in profitability.
VituVingiSana
#56 Posted : Wednesday, May 03, 2017 11:10:38 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Spikes wrote:
Angelica _ann wrote:
Pesa Nane wrote:
Ebenyo wrote:
[quote=Ericsson]KCB to close South Sudan branches due to war shocks

Good move to cut out the fat and loss making ventures and remain with the lean and profitable ventures

http://www.businessdaily...11620-x5erse/index.html[/quote]

a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique.


Shame on you Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile
+ Security risks (more of Kebab than theft)
+ Kenya/KDF relationship
+ Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar)
+ Flagging by major intermediary banks
+ Political risks (Policy in Som changes daily, sometimes hourly)
+ Huge currency risks


There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole smile smile smile

And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk?

As pointed out and articulated well by either @Pesa8 or @Ericsson, there's huge regulatory risk for KCB esp with European and US regulators. Why take the risk? The potential profits aren't enough to cover blacklisting for USD or Euro transactions, on-lending for US or EU funds, etc. Some US/EU shareholders may have to dispose of their shares if KCB is flagged or cited for non-kosher transactions. There is immense potential but that might be a few years into the future.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#57 Posted : Thursday, May 04, 2017 5:55:21 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,222
Location: nairobi
VituVingiSana wrote:
Spikes wrote:
Angelica _ann wrote:
Pesa Nane wrote:
Ebenyo wrote:
[quote=Ericsson]KCB to close South Sudan branches due to war shocks

Good move to cut out the fat and loss making ventures and remain with the lean and profitable ventures

http://www.businessdaily...11620-x5erse/index.html[/quote]

a good decision from the board.There is no need of keeping subsidiaries which are posting losses.Its the time to explore the planned move into somalia and mozambique.


Shame on you Somalia is a NO, NO. Banking in Somalia is very informal and does not fit the KCB profile
+ Security risks (more of Kebab than theft)
+ Kenya/KDF relationship
+ Huge investments in infrastructure would be required (Internet, Phone, Brick n mortar)
+ Flagging by major intermediary banks
+ Political risks (Policy in Som changes daily, sometimes hourly)
+ Huge currency risks


There is a huge chunk of Somalia that is very peaceful kuliko Baragoi/Laikipia/Kayole smile smile smile

And when the risk is so huge you can imagine the accelerating returns to scale of investing in Somalia . Somalia has a big potential of exponential business growth. The market is virtually virgin for entry of formal financial institutions. But who's willing to take the greatest risk?

As pointed out and articulated well by either @Pesa8 or @Ericsson, there's huge regulatory risk for KCB esp with European and US regulators. Why take the risk? The potential profits aren't enough to cover blacklisting for USD or Euro transactions, on-lending for US or EU funds, etc. Some US/EU shareholders may have to dispose of their shares if KCB is flagged or cited for non-kosher transactions. There is immense potential but that might be a few years into the future.

Burukenge analysis.. Ever heard of international blacklist for prohibited persons and business. The mafia are controlled by the said UN list. KCB can go to Somalia and do clean business. It's security factors that has delayed its entry

KQ ABP 4.26
Spikes
#58 Posted : Wednesday, May 24, 2017 5:44:10 PM
Rank: Elder

Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
obiero wrote:
Spikes wrote:
Ericsson wrote:
Spikes wrote:
muganda wrote:
But a proposed final dividend of 3/= per share is a lucrative pay-out of 11.5%

Nothing lucrative there.Just preparing you for rights issue.This is purely a bait.


Hakuna rights issue
Wewe meza mate watu wakila nyama

Good lucky. I know the market is hyped it can rise as high as 40/-

40 ni ndoto za mchana.. Lakini 30 is reality


There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period!
It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing!
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
maka
#59 Posted : Wednesday, May 24, 2017 6:02:07 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Spikes wrote:
obiero wrote:
Spikes wrote:
Ericsson wrote:
Spikes wrote:
muganda wrote:
But a proposed final dividend of 3/= per share is a lucrative pay-out of 11.5%

Nothing lucrative there.Just preparing you for rights issue.This is purely a bait.


Hakuna rights issue
Wewe meza mate watu wakila nyama

Good lucky. I know the market is hyped it can rise as high as 40/-

40 ni ndoto za mchana.. Lakini 30 is reality


There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period!
It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing!



Shots fired....smile
possunt quia posse videntur
Chaka
#60 Posted : Wednesday, May 24, 2017 6:38:53 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114

LOL...I like it when some jamaas get humbled..Leo atakamata humble pie for supper..

Spikes wrote:


There we go! 40/- prints. I was very accurate when I predicted this reality. Those who heed my calls always walk all the way to the bank smiling. @ Obiero you lost this one now it is prudent you take back your 'clown' title you branded me. It's high time you pronounce yourself 21st century clown .Period!
It's amazing how the market reacts against egotistical individuals and proves them wrong.@ Obiero your ego is on fire .It's blazing!


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