I dont think we should get too excited at this stage...

Group PBT up 15%, but group profits lower than bank profits showing subisdiaries are in trouble...

I have a feeling other banks will beat that 15% growth easily...then KCB will look like a laggard...

My price target is 14-15/= post rights.

Would this in future be the perfect takeover target for the big boys? Those of you following international business, I read somewhere that HSBC was snooping around SA, for a takeover target. Would KCB have a similar fate once the recession is officially over In the west?Presence in 6(correct me if I'm wrong) countries. I'm sure that once they stop the expansion, the eps growth should match the equities and stancharts. On the flip side, it is very poorly managed, in terms of ROA and ROIC. with the biggest assets, it should be able to generate much higher pat. Just curious as to the quality of these assets and whether they are what they say they are worth....

KCB can be, and should be, much more profitable than it currently is. The internal inefficiencies just cannot be shaken, as I understand the union runs the bank, and there is constant resistance to change and improvement.

Further, there are staff there who have been hired by virtue of patronage.

I dont think this rights issue will even be fully subscribed, and once the funds check in, dont expect any sudden great improvements in profitability as their inefficiency will not allow them to utilise these funds quickly and effectively enough.

Just looking through the results core capital/total deposit liabilities 10.6% statutory minimum 8%. Liquidity ratio 36.3% This lion has been taking too much deposits. Looks like GOK has to take up its balance of rights issue which was not sold if this lion is to take up more deposits from parastatals. Way too much potential if the rights succeed. Planning to take up double my allocation but I'm also stocking up on NIC just in case KCB does not deliver.