Wazua
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Law Capping interest rates
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Rank: Elder Joined: 6/23/2009 Posts: 14,238 Location: nairobi
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obiero wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:[quote=obiero][quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] Government stiff hand now visible with the last few failed auctions.. The NSE rally is nigh http://www.businessdaily...98768-c6waci/index.html[/quote] I spoke to the president
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Rank: Elder Joined: 6/23/2009 Posts: 14,238 Location: nairobi
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muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. @muandi only one listed lender being HF reduced its dividend payout. KCB even increased!!
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. @muandi only one listed lender being HF reduced its dividend payout. KCB even increased!! You aren't serious @obiero, I did decide. Atleast I wasn't quartered or halved. Hope you are enjoying riding the stormy seas still. That which thrills, kills too. ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 10/26/2015 Posts: 151
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muandiwambeu wrote:obiero wrote:muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. @muandi only one listed lender being HF reduced its dividend payout. KCB even increased!! You aren't serious @obiero, I did decide. Atleast I wasn't quartered or halved. Hope you are enjoying riding the stormy seas still. That which thrills, kills too. For those that bought Equity 3 weeks ago at 26,there's already a 30 percent markup.
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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MadDoc wrote:muandiwambeu wrote:obiero wrote:muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. @muandi only one listed lender being HF reduced its dividend payout. KCB even increased!! You aren't serious @obiero, I did decide. Atleast I wasn't quartered or halved. Hope you are enjoying riding the stormy seas still. That which thrills, kills too. For those that bought Equity 3 weeks ago at 26,there's already a 30 percent markup. NIC at 24.5  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: 14,238 Location: nairobi
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obiero wrote:obiero wrote:obiero wrote:obiero wrote:obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:[quote=Ebenyo][quote=obiero]I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold Here we are... Family fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/, then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html
80% of deposits are currently held in 7 banks in this country. Consolidation of institutions in the financial sector will pick up speed as we head deeper into turbulent economic times. Dubai, Imperial, Giro and Habib bank down.. Who's next?? More consolidation in the tier III http://www.businessdaily...5260-13vo7tgz/index.html
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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http://www.businessdaily...0742-sc66p0z/index.html
The act of imperialism and aggression from the west. Economic invasion disguised as IMF. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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Spikes wrote:http://www.businessdailyafrica.com/news/IMF-pressure-Kenya-interest-rate-cap/539546-3890742-sc66p0z/index.html
The act of imperialism and aggression from the west. Economic invasion disguised as IMF. IMF can go to Sheol punda amecheka
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Rank: Elder Joined: 12/4/2009 Posts: 10,809 Location: NAIROBI
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newfarer wrote:Spikes wrote:http://www.businessdailyafrica.com/news/IMF-pressure-Kenya-interest-rate-cap/539546-3890742-sc66p0z/index.html
The act of imperialism and aggression from the west. Economic invasion disguised as IMF. IMF can go to Sheol Beggars don't choose and you sing to the tune of the lender. Ask Egypt Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Law Capping interest rates
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