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Portfolio Balancing: Avoid Over Exposure To Financial Sector
VituVingiSana
#101 Posted : Sunday, August 20, 2017 12:12:42 PM
Rank: Chief


Joined: 1/3/2007
Posts: 13,306
Location: Nairobi
obiero wrote:
Mkondoa Macho wrote:
Banks have been taking a beating lately. The only bank that is thriving is Diamond Trust because it is geographically diversified. Other banks should start focusing on subsidiaries in other nations. Locally, they should think of alternative revenue streams to improve profitability. Unfortunately, they cant boost volumes with the low margins because it would essentially mean risky lending. The banking bonanza in Kenya is over. Banks better pay attention to their subsidiaries where there are no caps.

I could be wrong but I think I&M, KCB, Equity & COOP are also present beyond Kenya

The ex-Kenya operations for these 3 are less than 20% of their total business. Kenya remains "king" for these banks. That said, Equity and I&M have been increasing their ex-Kenya presence.
Equity - Procredit in DRC has replaced South Sudan
I&M - BankOne in Mauritius has been growing in importance
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#102 Posted : Saturday, September 02, 2017 9:22:09 PM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
VituVingiSana wrote:
obiero wrote:
Mkondoa Macho wrote:
Banks have been taking a beating lately. The only bank that is thriving is Diamond Trust because it is geographically diversified. Other banks should start focusing on subsidiaries in other nations. Locally, they should think of alternative revenue streams to improve profitability. Unfortunately, they cant boost volumes with the low margins because it would essentially mean risky lending. The banking bonanza in Kenya is over. Banks better pay attention to their subsidiaries where there are no caps.

I could be wrong but I think I&M, KCB, Equity & COOP are also present beyond Kenya

The ex-Kenya operations for these 3 are less than 20% of their total business. Kenya remains "king" for these banks. That said, Equity and I&M have been increasing their ex-Kenya presence.
Equity - Procredit in DRC has replaced South Sudan
I&M - BankOne in Mauritius has been growing in importance

It would take a miracle for a Kenyan bank to be the largest bank in a foreign country without adequate government holding by the foreign state.. Meanwhile, sell all bank stocks apart from COOP & KCB, if you have to hold
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
Ebenyo
#103 Posted : Sunday, September 03, 2017 7:38:28 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 927
Location: Kitale
obiero wrote:
VituVingiSana wrote:
obiero wrote:
Mkondoa Macho wrote:
Banks have been taking a beating lately. The only bank that is thriving is Diamond Trust because it is geographically diversified. Other banks should start focusing on subsidiaries in other nations. Locally, they should think of alternative revenue streams to improve profitability. Unfortunately, they cant boost volumes with the low margins because it would essentially mean risky lending. The banking bonanza in Kenya is over. Banks better pay attention to their subsidiaries where there are no caps.

I could be wrong but I think I&M, KCB, Equity & COOP are also present beyond Kenya

The ex-Kenya operations for these 3 are less than 20% of their total business. Kenya remains "king" for these banks. That said, Equity and I&M have been increasing their ex-Kenya presence.
Equity - Procredit in DRC has replaced South Sudan
I&M - BankOne in Mauritius has been growing in importance

It would take a miracle for a Kenyan bank to be the largest bank in a foreign country without adequate government holding by the foreign state.. Meanwhile, sell all bank stocks apart from COOP & KCB, if you have to hold


Great point indeed.Co-op did well to patner with govt of south sudan.That will aid their growth their in the long run.
1.Cut down on expenses2.Save a portion of the income 3.Invest heavily
obiero
#104 Posted : Sunday, September 03, 2017 8:21:36 AM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
Ebenyo wrote:
obiero wrote:
VituVingiSana wrote:
obiero wrote:
Mkondoa Macho wrote:
Banks have been taking a beating lately. The only bank that is thriving is Diamond Trust because it is geographically diversified. Other banks should start focusing on subsidiaries in other nations. Locally, they should think of alternative revenue streams to improve profitability. Unfortunately, they cant boost volumes with the low margins because it would essentially mean risky lending. The banking bonanza in Kenya is over. Banks better pay attention to their subsidiaries where there are no caps.

I could be wrong but I think I&M,
Equity & COOP are also present beyond Kenya

The ex-Kenya operations for these 3 are less than 20% of their total business. Kenya remains "king" for these banks. That said, Equity and I&M have been increasing their ex-Kenya presence.
Equity - Procredit in DRC has replaced South Sudan
I&M - BankOne in Mauritius has been growing in importance

It would take a miracle for a Kenyan bank to be the largest bank in a foreign country without adequate government holding by the foreign state.. Meanwhile, sell all bank stocks apart from COOP & KCB, if you have to hold


Great point indeed.Co-op did well to patner with govt of south sudan.That will aid their growth their in the long run.

And COOP is now leasing vehicles to GoK.. Very innovative thinking by the Kingdom bank http://www.businessdaily...78614-mpnoedz/index.html
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
obiero
#105 Posted : Monday, October 02, 2017 7:25:38 PM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
Please read this thread carefully and remember me within the next 24 days.
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
obiero
#106 Posted : Friday, October 06, 2017 2:48:33 PM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...127740-pjse5m/index.html
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
Ericsson
#107 Posted : Friday, October 06, 2017 3:57:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 3,592
Location: NAIROBI
[quote=obiero]I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...27740-pjse5m/index.html[/quote]

“Today’s rating action is driven primarily by a potential weakening of the Kenyan government’s credit profile, in particular in the country’s fiscal strength and liquidity risk, as captured by Moody’s recent decision to place Kenya’s B1 government ratings on review for downgrade,” agency said in a statement.
winmak
#108 Posted : Friday, October 06, 2017 5:16:25 PM
Rank: Member


Joined: 12/1/2007
Posts: 233
Location: Nakuru
What does all this mean? I believe there is no direct effect on day to day operations
For investors as a whole, returns decrease as motion increases ~ WB
Angelica _ann
#109 Posted : Friday, October 06, 2017 5:19:26 PM
Rank: Elder


Joined: 12/7/2012
Posts: 7,555
Ericsson wrote:
[quote=obiero]I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...27740-pjse5m/index.html[/quote]

“Today’s rating action is driven primarily by a potential weakening of the Kenyan government’s credit profile, in particular in the country’s fiscal strength and liquidity risk, as captured by Moody’s recent decision to place Kenya’s B1 government ratings on review for downgrade,” agency said in a statement.



But this will definitely make cost of international credit to Kenya more expensive?
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
obiero
#110 Posted : Friday, October 06, 2017 7:02:31 PM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
Angelica _ann wrote:
Ericsson wrote:
[quote=obiero]I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...27740-pjse5m/index.html[/quote]

“Today’s rating action is driven primarily by a potential weakening of the Kenyan government’s credit profile, in particular in the country’s fiscal strength and liquidity risk, as captured by Moody’s recent decision to place Kenya’s B1 government ratings on review for downgrade,” agency said in a statement.



But this will definitely make cost of international credit to Kenya more expensive?

That is the truth.. I told you the two men are no good for this nation
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
Ebenyo
#111 Posted : Saturday, October 07, 2017 9:47:59 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 927
Location: Kitale
obiero wrote:
Angelica _ann wrote:
Ericsson wrote:
[quote=obiero]I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...27740-pjse5m/index.html[/quote]

“Today’s rating action is driven primarily by a potential weakening of the Kenyan government’s credit profile, in particular in the country’s fiscal strength and liquidity risk, as captured by Moody’s recent decision to place Kenya’s B1 government ratings on review for downgrade,” agency said in a statement.



But this will definitely make cost of international credit to Kenya more expensive?

That is the truth.. I told you the two men are no good for this nation



I prefer Raila.He is good for our economy and i believe as investors,we will reap big returns under his leadership or whomever he will pass the baton to.
1.Cut down on expenses2.Save a portion of the income 3.Invest heavily
maka
#112 Posted : Saturday, October 07, 2017 9:58:32 PM
Rank: Elder


Joined: 4/22/2010
Posts: 10,104
Location: Nairobi
winmak wrote:
What does all this mean? I believe there is no direct effect on day to day operations


Effect on which operations?
possunt quia posse videntur
obiero
#113 Posted : Monday, October 09, 2017 7:03:17 AM
Rank: Elder


Joined: 6/23/2009
Posts: 7,116
Location: nairobi
maka wrote:
winmak wrote:
What does all this mean? I believe there is no direct effect on day to day operations


Effect on which operations?

I don't know which operations are being referred to but here is a good piece on the stressed financial industry http://www.businessdaily...30540-upnp5dz/index.html
one thing that's certain is that there's uncertainty at the NSE and stocks hate uncertainty
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