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HF 1Q19
VituVingiSana
#11 Posted : Wednesday, June 05, 2019 10:38:08 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
obiero wrote:
Ericsson wrote:
VituVingiSana wrote:
Questions investors need to ask.


Now that it has dropped to the 4.50 level, is it worth buying?
Can it be an acquisition target for a stronger bank just as NBK was bought out by KCB?
Or Jamii by CBA.
If yes, at what price?

Coop bank can acquire the good book to grow its share of Mortgage business

HF isn't a distressed bank to warrant takeover.. Just had large facilities turning against them in the NPL coupled with reduced lending due to the economic crunch.. Once the economic engine turns back on, it will be well

Who ends up with the "bad book" if the "good book" is sold unless HF is taken through administration like Chase and Imperial?
HF will need capital given it is very close to the minimum of one of the Capital Ratios as shown in the UNAUDITED 1Q 2019 results.
NPLs are a fact of life. Look at how I&M has to fight off frivolous objections by Watu Wa Othaya. Does HF have time on its side to manage the NPLs?
When will the economic engine turn?

Only the strong or favored will survive the next 3 years under #TanoTena.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Wakanyugi
#12 Posted : Wednesday, June 05, 2019 10:39:20 PM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
Ericsson wrote:
VituVingiSana wrote:
Questions investors need to ask.


Now that it has dropped to the 4.50 level, is it worth buying?
Can it be an acquisition target for a stronger bank just as NBK was bought out by KCB?
Or Jamii by CBA.
If yes, at what price?

Coop bank can acquire the good book to grow its share of Mortgage business


I actually think Meba would be a better suitor. Equity's mortgage unit is pretty weak. HFCK would be a great addition to their retail banking model, which they have clearly perfected and now need to extend.
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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