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Ericsson
#1201 Posted : Wednesday, August 12, 2020 7:39:27 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#1202 Posted : Wednesday, August 12, 2020 8:29:08 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Ericsson wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn


Culprit is the provision for bad debts up by 264% from ksh.3bn to 11bn.

All the subsidiaries were profitable with the aggregate PBT up 22% to ksh.1.5bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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heri
#1203 Posted : Wednesday, August 12, 2020 8:39:33 PM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
Ericsson wrote:
Ericsson wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn


Culprit is the provision for bad debts up by 264% from ksh.3bn to 11bn.

All the subsidiaries were profitable with the aggregate PBT up 22% to ksh.1.5bn


Can someone help me understand, if they have restructured loans worth over sh 100B and growing, the provision will be much more i guess by year end?
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Ericsson
#1204 Posted : Wednesday, August 12, 2020 8:46:59 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
heri wrote:
Ericsson wrote:
Ericsson wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn


Culprit is the provision for bad debts up by 264% from ksh.3bn to 11bn.

All the subsidiaries were profitable with the aggregate PBT up 22% to ksh.1.5bn


Can someone help me understand, if they have restructured loans worth over sh 100B and growing, the provision will be much more i guess by year end?


The CBK monthly monetary policy committee meetings usually give the figure of the restructured loans.
From there you can get the projections.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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heri
#1205 Posted : Wednesday, August 12, 2020 9:07:37 PM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
Ericsson wrote:
heri wrote:
Ericsson wrote:
Ericsson wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn


Culprit is the provision for bad debts up by 264% from ksh.3bn to 11bn.

All the subsidiaries were profitable with the aggregate PBT up 22% to ksh.1.5bn


Can someone help me understand, if they have restructured loans worth over sh 100B and growing, the provision will be much more i guess by year end?


The CBK monthly monetary policy committee meetings usually give the figure of the restructured loans.
From there you can get the projections.


and what they are providing for is it based on CBK's covid guidance which i think means the provisions could be even higher?
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Ericsson
#1206 Posted : Wednesday, August 12, 2020 9:36:52 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
heri wrote:
Ericsson wrote:
heri wrote:
Ericsson wrote:
Ericsson wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021


Edited to include profit before tax down 28% to 12.8bn


Culprit is the provision for bad debts up by 264% from ksh.3bn to 11bn.

All the subsidiaries were profitable with the aggregate PBT up 22% to ksh.1.5bn


Can someone help me understand, if they have restructured loans worth over sh 100B and growing, the provision will be much more i guess by year end?


The CBK monthly monetary policy committee meetings usually give the figure of the restructured loans.
From there you can get the projections.


and what they are providing for is it based on CBK's covid guidance which i think means the provisions could be even higher?


CBK gets the data from each of the banks on the loan amounts they have restructured.
CBK then sums them up and gives the total figure of the total restructured loans during the monthly monetary policy committee review meeting.

The provision KCB has given is what they anticipate as loss of interest income from the restructured loans.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ebenyo
#1207 Posted : Thursday, August 13, 2020 8:08:26 AM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021




This was anticipated due to covid 19.
The best thing is that it's the higher provisioning that has caused the 40% decline in profit.This will recover with time.
Towards the goal of financial freedom
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Angelica _ann
#1208 Posted : Thursday, August 13, 2020 9:04:38 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Ebenyo wrote:
Ericsson wrote:
HY 2020
Profit before tax down 28% to 12.8bn from 17.9bn in HY 2019
40% decline in after tax profit to ksh.7.6bn
Caused by increased provisions due to the COVID-19 pandemic
Total assets grew by 28% to Ksh.953.1bn
Net loans and advances grew 17% to ksh.559.9bn
Customer deposits up 35% to ksh.758.2bn
Stock of Non-performing loans increased to ksh.83.9bn from 39.19bn in 2019
--Ratio of non-performing loans (NPLs)to total loan book increased to 13.7% from 7.8% in 2019,due to consolidation of NBK and heightened defaults associated with COVID-19 pandemic.

Q3 will equally be reasonably difficult,form and growth will start from Q4 and into 2021




This was anticipated due to covid 19.
The best thing is that it's the higher provisioning that has caused the 40% decline in profit.This will recover with time.


Expect 2020/2021 to have poor performance with reduced earnings in most sectors which will reflect on financial sector aka Banks.

You will see new lows in the financial sector at the NSE.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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  | | Edit by user: Thursday, August 13, 2020 9:24 AM | Reason: Not specified
Ericsson
#1209 Posted : Thursday, August 13, 2020 2:42:14 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
KCB Group, Kenya’s biggest bank by assets, expects the proportion of loans it will restructure due to effects of the novel coronavirus to hit 25% of its total loans by December.

By June it had restructured about 20% of total loan book.

A significant jump in the figure for provision for bad debts is not expected compared to the one witnessed in HY
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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WWW
  | | Edit by user: Thursday, August 13, 2020 2:45 PM | Reason: Not specified
mlennyma
#1210 Posted : Thursday, August 13, 2020 7:06:29 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Iam a buyer sub 20
"Don't let the fear of losing be greater than the excitement of winning."
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