Wazua
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Chief Joined: 1/3/2007 Posts: 18,249 Location: Nairobi
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https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 8/1/2019 Posts: 102
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VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw.
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Rank: Elder Joined: 6/23/2009 Posts: 13,872 Location: nairobi
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McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture!
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,249 Location: Nairobi
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obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. 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: 13,872 Location: nairobi
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VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,249 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. 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: 13,872 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. Alright. I get your pattern. Provisions from the bad debts will affect the bottom line. Potato potato!
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,249 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. Alright. I get your pattern. Provisions from the bad debts will affect the bottom line. Potato potato! IFRS not my pattern. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn What am I learning from subjectively selected data which is an outlier You make a generic statement about an industry and then selectively pick data for 3 and ignore data for 7 to prove what exactly?? Sasa @Obiero Brother Obiero, tafadhali soma hii alafu you comment!!!Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!!  Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 13,872 Location: nairobi
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MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY?
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY? Where I went to school, I was taught that you can use a sample to disapprove a theory but you can't use a sample to prove it. For example if someone claims Kenya allows only male MPs, I can sumply produce 1 female MP to disapprove it. But the person making the claim cannot produce 1 Male MP to prove it. Not even a hundred!!! Still not enough! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY? Of importance @Obiero, as we wait for KCB's results tomorrow, do you still stand by your doomsday prediction??? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 13,872 Location: nairobi
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MaichBlack wrote:obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY? Of importance @Obiero, as we wait for KCB's results tomorrow, do you still stand by your doomsday prediction??? My sister. What doomsday is on this projection? PBT projected vs actual KCB 49.2 EQTY 37.4 - 41.5 COOP 19.7 ABSA 17.6 NCBA 15.2 SCBK 13.4 I&M 11.1 SBIC 8.7 - 8.6 DTB 8.4 HF 0.71
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY? Of importance @Obiero, as we wait for KCB's results tomorrow, do you still stand by your doomsday prediction??? My sister. What doomsday is on this projection? PBT projected vs actual KCB 49.2 EQTY 37.4 - 41.5 COOP 19.7 ABSA 17.6 NCBA 15.2 SCBK 13.4 I&M 11.1 SBIC 8.7 - 8.6 DTB 8.4 HF 0.71 This came much later. And if you look at the conversation in this quoted thread, I had told you to do exactly that as you always do to realise your assertion was totally off, which it was. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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Now bro @Obiero, without "speaking in code" or telling people to "watch and learn", what say you about the Finacial Sector, profitability, growth, investing in it etc.? In simple, clear and straightforward words. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 13,872 Location: nairobi
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MaichBlack wrote:obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:MaichBlack wrote:obiero wrote:EQTY -8%, SCBK -12%, SBIC -24% down on PBT for Q1 2025. Watch and learn And the rest??? One can subjectively selected data to say whatever they want. List for all the banks you normally track in the other thread and their percentage increase or decrease and then tell us what you are trying to say. You can't pick 3 out 10 banks and try to push a certain narrative while totally ignoring the other 7 surely unless you trying to be dishonest. Flat growth? An oxymoron. I hold the right to free speech. Watch and learn Equity's PBT in Q2 2025 was Kshs. 22.9 billion!! It's strongest quarterly performance in history!!!Not only were you monumentally wrong, you were wrong by historical proportions. I ask you again, what is this we are supposed to "watch and learn"?? And the "speaking in code". If anyone listens to you, they would wail in a public toilet!!! Master of double speech. Subjectively picking one out of 10. All banks have released HY? Of importance @Obiero, as we wait for KCB's results tomorrow, do you still stand by your doomsday prediction??? My sister. What doomsday is on this projection? PBT projected vs actual KCB 49.2 EQTY 37.4 - 41.5 COOP 19.7 ABSA 17.6 NCBA 15.2 SCBK 13.4 I&M 11.1 SBIC 8.7 - 8.6 DTB 8.4 HF 0.71 This came much later. And if you look at the conversation in this quoted thread, I had told you to do exactly that as you always do to realise your assertion was totally off, which it was. Observe that I have been holding financial stocks, and still do hold. There's consolidation happening. The days of 25% YoY PBT jumps is behind us. Yesterday, CBK MPC again tightened the tap. If you are keeping track of what's happening, you will eventually see. The writing is on the wall https://www.businessdail...e-to-nearly-90pc-5150158
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 804,000 ABP 6.26; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,249 Location: Nairobi
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MaichBlack wrote:Now bro @Obiero, without "speaking in code" or telling people to "watch and learn", what say you about the Finacial Sector, profitability, growth, investing in it etc.? In simple, clear and straightforward words. New buzz phrases you will eventually seeThe writing is on the wall Meanwhile ABSA declared a 20c interim for 1H25 Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,635
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Rank: Elder Joined: 12/7/2012 Posts: 11,927
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When I was buying ABSA (then BBK) at 8.5/10 levels, the beating I got here from our resident guru Anyway the dividends keep coming. 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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Wazua
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
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