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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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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
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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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 COOP, IMH, KEGN, KQ, MTNU
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Rank: Veteran Joined: 4/4/2016 Posts: 2,021 Location: Kitale
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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. Towards the goal of financial freedom
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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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 COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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Please read this thread carefully and remember me within the next 24 days. COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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I sent out a warning late last year but some did not listen. Now look http://www.businessdaily...127740-pjse5m/index.html COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 12/4/2009 Posts: 10,819 Location: NAIROBI
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[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. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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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
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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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
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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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 COOP, IMH, KEGN, KQ, MTNU
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
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