Wazua
»
Investor
»
Stocks
»
KCB HY 2011 results are here!
Rank: Elder Joined: 6/20/2007 Posts: 2,075 Location: Lagos, Nigeria
|
kenyainvestor wrote:young wrote:@kenyainvestor / other experts
Let me ask again, why does NSE reckon with PBT rather than PAT.? It is the only market I invest in that believes so much in PBT.
I think PAT is the key as it dictates the EPS.
Any thoughts or just the kenyan way ? Does KCB and Equity get taxed at the same rate? In 2005, the Kenya Government agreed to reduce the level of taxation to 20% for a period of 5 years for any company that chose to list. This was done to encourage listing at the NSE. Equity listed in 2006. Thus until next year, we cannot compare these two on Profit After Tax Thanks for the explanation, let me set out to read the analysis in your blog. The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
|
|
|
Rank: Member Joined: 7/12/2011 Posts: 194
|
young wrote:kenyainvestor wrote:young wrote:@kenyainvestor / other experts
Let me ask again, why does NSE reckon with PBT rather than PAT.? It is the only market I invest in that believes so much in PBT.
I think PAT is the key as it dictates the EPS.
Any thoughts or just the kenyan way ? Does KCB and Equity get taxed at the same rate? In 2005, the Kenya Government agreed to reduce the level of taxation to 20% for a period of 5 years for any company that chose to list. This was done to encourage listing at the NSE. Equity listed in 2006. Thus until next year, we cannot compare these two on Profit After Tax Thanks for the explanation, let me set out to read the analysis in your blog. Thanks @young. Though I would feel better if I am backed up by other Wazuans on my observation 
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
Sluggish numbers from KCB, on a straight line, if KCB maintains this performance throughout the year, Full Year 2011 profits will hit Sh8 Billion versus Sh7.1 Billion for 2010 which is like a 12.5% improvement over the last year, I’m also disappointed at the rate at which operating costs keep climbing, cost to income ratio now stands at 66%, it seems the much talked about restructuring is yet to have an impact on costs, contribution of non interest income to total operating income now stands at 37% versus 20% in 1H 2010 while Net interest income was up 20%, going forward I expect lending to slowdown due to inflation but I believe KCB is well positioned regionally to maintain this performance. Read more here http://www.contrarianinv...1-earnings-analysis.html
|
|
|
Rank: Elder Joined: 6/20/2007 Posts: 2,075 Location: Lagos, Nigeria
|
the deal wrote: it seems the much talked about restructuring is yet to have an impact on costs, It is too early to expect a remarkable impact on costs , bank re-structuring is a process and often times the earliest time to feel th impact on the bottom line per se is 12 to 18 months. Be on the watch post 2012 elections / 2013 for the re-structuring impact of KCB. The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
Staff lay offs, and in KCB's case, costs lots of money but it's one-off expense for H1. Cost to income ratio has improved from 70% to 66%. See U in Q3.
|
|
|
Rank: Elder Joined: 6/20/2007 Posts: 2,075 Location: Lagos, Nigeria
|
@Kenyainvestor, I have fully digested your H1 KCB results analysis. I fully agree with you in most areas in principles. But looking forward on the flat board I expect Equity to outperform KCB at FY 2011, though the absolute profit margin difference will almost thin out. I predict the table will turn to the advantage of KCB in FY 2012. On the dividend yield which is of much interest to me, for FY 2011 I expect a 1.50 dividend from KCB (20% above 2010) and 1.20 (50% above 2010) dividend from Equity. The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
|
young wrote:FUNKY wrote:@ Young - How can you say that KCB will outperform Equity due to cost saving measures because like KCB even Equity restructured it top management and retired several senior staff voluntarily. KCB has far bigger balance sheet than Equity. There more costs to cut in the oversized KCB and MOO is looking in that direction. Factor in the new funds injected by last years rights issue. While KCB is cutting costs, Equity is expanding its Balance Sheet & Profits! Equity will open branches in Rwanda & Tanzania in 2011. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
KCB: FY2011 eps-3.5, dps-1.75. My 2cts
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
EBL is moving into what KCB is moving out of..that is establishing physical presence in EAC and related expenses. The difference in tongues at Equity & KCB are "we are going to do..." & "we are already doing..." respectively. Business cycles 101.
|
|
|
Rank: Elder Joined: 6/2/2008 Posts: 1,438
|
Although not mindblowing, KCB's H1 performance in my view is somewhat better than expected. This is especially when compared to Q1's outturn. Q2 PAT accelerated by 28.7% vis-a-vis Q1 which is an increase of 509 million.
Of course, KCB has to reckon with last year's increase in the number of shares meaning that KCB's EPS for the year will just about remain the same or increase slightly.
I have also noted that KCB's liquidity ratio in the Kenyan operation has dropped to just above the statutory minimum. This implies there is limited room to grow the loan book unless deposits can be mobilized at a faster rate.
|
|
|
Wazua
»
Investor
»
Stocks
»
KCB HY 2011 results are here!
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|