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KCB HY 2016 results
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obiero
#21 Posted : Thursday, August 04, 2016 9:39:32 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,222
Location: nairobi
shocks wrote:
hisah wrote:


Interesting.

Hapa wamenichenga, I thought they needed a rights issue coz. capital to risk weighted assets ratio was low, sasa loans are up but they no longer require capital injection?

U are not alone

KQ ABP 4.26
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mlennyma
#22 Posted : Thursday, August 04, 2016 10:43:17 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
obiero wrote:
shocks wrote:
hisah wrote:


Interesting.

Hapa wamenichenga, I thought they needed a rights issue coz. capital to risk weighted assets ratio was low, sasa loans are up but they no longer require capital injection?

U are not alone

pending law will give direction, is the whole of s.sudan closed?
"Don't let the fear of losing be greater than the excitement of winning."
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hisah
#23 Posted : Friday, August 05, 2016 1:40:40 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
mlennyma wrote:
obiero wrote:
shocks wrote:
hisah wrote:


Interesting.

Hapa wamenichenga, I thought they needed a rights issue coz. capital to risk weighted assets ratio was low, sasa loans are up but they no longer require capital injection?

U are not alone

pending law will give direction, is the whole of s.sudan closed?

Like @vvs says, there is something here that's not quite right with simba. Mr Market has kicked it in teeth from 60s level to the current 31 level for a reason. Suddenly they reschedule the rights, which was a bad idea in a bear. What is simba not saying? Something stinks...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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obiero
#24 Posted : Friday, August 05, 2016 9:38:59 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,222
Location: nairobi
hisah wrote:
mlennyma wrote:
obiero wrote:
shocks wrote:
hisah wrote:


Interesting.

Hapa wamenichenga, I thought they needed a rights issue coz. capital to risk weighted assets ratio was low, sasa loans are up but they no longer require capital injection?

U are not alone

pending law will give direction, is the whole of s.sudan closed?

Like @vvs says, there is something here that's not quite right with simba. Mr Market has kicked it in teeth from 60s level to the current 31 level for a reason. Suddenly they reschedule the rights, which was a bad idea in a bear. What is simba not saying? Something stinks...

@hisah.. care to explain this something

KQ ABP 4.26
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Pesa Nane
#25 Posted : Friday, August 05, 2016 10:57:41 AM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
obiero wrote:
hisah wrote:
mlennyma wrote:
obiero wrote:
shocks wrote:
hisah wrote:


Interesting.

Hapa wamenichenga, I thought they needed a rights issue coz. capital to risk weighted assets ratio was low, sasa loans are up but they no longer require capital injection?

U are not alone

pending law will give direction, is the whole of s.sudan closed?

Like @vvs says, there is something here that's not quite right with simba. Mr Market has kicked it in teeth from 60s level to the current 31 level for a reason. Suddenly they reschedule the rights, which was a bad idea in a bear. What is simba not saying? Something stinks...

@hisah.. care to explain this something


Rights issue was a fund raising exercise which has been solved through
1. Strong performance
2. Cheap long term debt
not to forget the 'foul-mooded' grizzly unleashed upon us

Quote:
KCB Bank Kenya, which is the leading subsidiary in the group, maintained a strong show on all key ratios with core capital to total risk weighted at 14.7% (CBK minimum-10.5%), total capital to total risk weighted assets at 16.0% (CBK minimum-14.5%), core capital to total deposits at 15.7% (minimum-8.0%) and liquidity ratio at 34.6% (CBK minimum-20%).

The high capital and liquidity ratios mean the Bank has strong headroom to fund bigger projects in the East African region.


Quote:
“We have strong cash flow and there is interest from international financiers willing to lend us up to $200 million (Sh20 billion).”

Pesa Nane plans to be shilingi when he grows up.
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watesh
#26 Posted : Friday, August 05, 2016 11:33:13 AM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
[quote=lochaz-index]Change of course by Kcb with regards to Chase bank. Were they not given a 'first refusal' by Cbk? Is this how the process was to be carried out? Me thinks they were not sincere from the get go. First they dropped Imperial Bank now Chase bank... http://www.theeastafrica...392-13akqknz/index.html[/quote]
Maybe it was a move to get in Chase Bank's pants and see what SME customers it can poach
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Ericsson
#27 Posted : Friday, August 05, 2016 11:36:37 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@watesh
The rot inside is too much.
KCB doesn't want to carry the liability as it may involve pumping in money.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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washiku
#28 Posted : Friday, August 05, 2016 1:44:52 PM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
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hisah
#29 Posted : Friday, August 05, 2016 2:22:07 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
@obiero, shareholders approved the rights issue back in April 2016.

Mr Oigara told the shareholders that the additional funds would be used to boost the lender’s minimum capital requirements and double its loan book and deposits.

Suddenly we have changed the course since $200M debt can now be sourced internationally... So why waste shareholders time by calling for a rights issue then suddenly it's no longer valid? What has changed within 90 days? Are their forecasting models that short term??? d'oh!

Flip flopping management doesn't send encouraging signals to investors.

KCB puts off Sh10bn rights issue indefinitely. “The capital raising is rescheduled,” KCB’s chief executive Joshua Oigara said without indicating when the rights issue plan may be revisited.“We have strong cash flow and there is interest from international financiers willing to lend us up to $200 million (Sh20 billion).” The price decline has in turn made the rights issue less attractive since offering a discount price to incentivize shareholders’ participation would have potentially set a price below the bank’s current net asset value per share of Sh29.6.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Ebenyo
#30 Posted : Saturday, August 06, 2016 10:11:49 AM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
I have started going through my copy of kcb HY 2016 results.
My preliminary observation is that things are going well to the right direction.
Q1 was definitely alarming as NPL increased by 30% from kshs 23 billion to kshs 30 bilion.
HY results indicates an increase of 8% from 30 bilion to 32 bilion.
I hope things stand that way till end year because of these
Good points to note:
*Shs 7 bilion will be recovered
from two contractors.They have been waiting for the treasury to pay them.
3 weeks ago,the chinese bank loaned 60 bilion to the treasury.Its this money that will pay the 7 bilion NPL.
*Shs 1 bilion will be recovered from the miling company of Tss which kcb seized one and a half weeks ago.
That will make a total of 8 bilion recovered npl by end year.
Going by these facts,FY 16 results will report a decrease of Npl from 32 bilion to 24 bilion.30% decrease.That means LLP will also decrease and the profits will increase!
Towards the goal of financial freedom
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  | | Edit by user: Saturday, August 06, 2016 11:10 AM | Reason: Not specified
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