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VituVingiSana
#881 Posted : Wednesday, September 27, 2017 11:17:32 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi


Is a Rights Issue imminent for KCB in 2018?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#882 Posted : Thursday, September 28, 2017 10:15:11 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
VituVingiSana wrote:


Is a Rights Issue imminent for KCB in 2018?


I don't think so;they will adjust and comply accordingly.
The CEO Oigara said they have more than sufficient reserve which even gave them room to payout an interim dividend
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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alotoftalk
#883 Posted : Thursday, September 28, 2017 10:15:31 AM
Rank: Member

Joined: 8/27/2015
Posts: 138
Location: Harare
VituVingiSana wrote:


Is a Rights Issue imminent for KCB in 2018?


It depends on how big their exposure is. There is a transitional phasing-in period proposed by Basel(and which I expect CBK to include in their implementation guidance) of spreading the effect within five years for the day one effect on core tier 1 capital.
Investment philosophy development in progress...
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VituVingiSana
#884 Posted : Friday, September 29, 2017 12:21:27 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
alotoftalk wrote:
VituVingiSana wrote:


Is a Rights Issue imminent for KCB in 2018?


It depends on how big their exposure is. There is a transitional phasing-in period proposed by Basel(and which I expect CBK to include in their implementation guidance) of spreading the effect within five years for the day one effect on core tier 1 capital.

So KCB may not have sufficient Tier 1 Capital to cover their ratios if IFRS 9 was implemented in full on 1st Jan 2018?

Where does it say that there is a 5-year "transitional phase-in" period? Aspects of the IFRS 9 could have been "early adopted" as done by DTB.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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alotoftalk
#885 Posted : Friday, September 29, 2017 8:07:17 AM
Rank: Member

Joined: 8/27/2015
Posts: 138
Location: Harare
VituVingiSana wrote:
alotoftalk wrote:
VituVingiSana wrote:


Is a Rights Issue imminent for KCB in 2018?


It depends on how big their exposure is. There is a transitional phasing-in period proposed by Basel(and which I expect CBK to include in their implementation guidance) of spreading the effect within five years for the day one effect on core tier 1 capital.

So KCB may not have sufficient Tier 1 Capital to cover their ratios if IFRS 9 was implemented in full on 1st Jan 2018?

Where does it say that there is a 5-year "transitional phase-in" period? Aspects of the IFRS 9 could have been "early adopted" as done by DTB.


Because of the expected credit losses concept, it's quite possible that the impact may thin out their tier 1 capital.

There are two aspects to the IFRS 9 implementation. The accounting and the regulatory. Good examples, tier one capital is not an accounting but regulatory aspect. Another example, the definition of a loan in default is also a regulatory aspect. Regulatory aspects are usually standardized for all banks based on concepts proposed by Basel and adopted by the regulator, in this case, CBK.

Read more (start at pg. 27) about the regulatory transitional aspects here:

https://www.esrb.europa...._stab_imp_IFRS_9.en.pdf
Investment philosophy development in progress...
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VituVingiSana
#886 Posted : Friday, September 29, 2017 10:55:14 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
alotoftalk wrote:
VituVingiSana wrote:
alotoftalk wrote:
VituVingiSana wrote:


Is a Rights Issue imminent for KCB in 2018?


It depends on how big their exposure is. There is a transitional phasing-in period proposed by Basel(and which I expect CBK to include in their implementation guidance) of spreading the effect within five years for the day one effect on core tier 1 capital.

So KCB may not have sufficient Tier 1 Capital to cover their ratios if IFRS 9 was implemented in full on 1st Jan 2018?

Where does it say that there is a 5-year "transitional phase-in" period? Aspects of the IFRS 9 could have been "early adopted" as done by DTB.


Because of the expected credit losses concept, it's quite possible that the impact may thin out their tier 1 capital.

There are two aspects to the IFRS 9 implementation. The accounting and the regulatory. Good examples, tier one capital is not an accounting but regulatory aspect. Another example, the definition of a loan in default is also a regulatory aspect. Regulatory aspects are usually standardized for all banks based on concepts proposed by Basel and adopted by the regulator, in this case, CBK.

Read more (start at pg. 27) about the regulatory transitional aspects here:

https://www.esrb.europa...._stab_imp_IFRS_9.en.pdf

Thank you.
What's the (significant) accounting aspect of IFRS 9?
Weren't the SLRs a result of CBK's more stringent prudential guidelines?
Doesn't the more stringent of the 2 standards apply i.e. PG vs IFRS 9?
Will SLRs remains in place on 1st Jan 2018?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#887 Posted : Friday, September 29, 2017 11:28:37 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
@vvs
No need kujistress.
Just wait for the CBK guidelines and see whether KCB will be compliant
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#888 Posted : Friday, September 29, 2017 2:32:01 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Ericsson wrote:
@vvs
No need kujistress.
Just wait for the CBK guidelines and see whether KCB will be compliant

When are these expected to be out? [It's almost end of 3Q]
Doesn't ICPAK have a say?

In light of IFRS 9, I am staying away from KCB when there are other options eg NIC, Equity and I&M
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#889 Posted : Friday, September 29, 2017 2:48:19 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
@vvs
Isorite You've never been on KCB and a fan.
I can bet you kcb will not be that affected as you think.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#890 Posted : Friday, September 29, 2017 3:20:37 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Ericsson wrote:
@vvs
Isorite You've never been on KCB and a fan.
I can bet you kcb will not be that affected as you think.

It's a SIFI hence my concern just like I worry about KQ being subsidized by taxpayers like me. I don't want Taxpayer cash being used to subsidize [low ROE] KCB either when I would rather re-invest my own money instead of GoK borrowing or increasing taxes.

Plus what does this say about KCB's lending policies?

BTW, check this out http://www.businessdaily...7088-rca47gz/index.html

Good luck re: KCB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Friday, September 29, 2017 3:24 PM | Reason: Not specified
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