Wazua
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KCB Q3 ANTICIPATION
Rank: Elder Joined: 2/10/2007 Posts: 1,587
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kenyainvestor wrote:Cde Monomotapa wrote:kenyainvestor wrote:The profit growth is almost identical to Equity's. Both PAT and PBT separated by just 0.8%, with KCB taking the lead.
Seems like the Full Year figures will be a photo finish Please note that Equity is still enjoying the preferential 20% corporate tax c/o listing which should end this year while KCB has been paying 30%. Of course. I remember a while back guys were asking why we compared the 2 mostly on Pre-Tax profit Subsidiaries continued their positive contribution to the Group business. They made Kshs. 400 Million more in Profit Before Tax than they made at this time last year, validating the managements decision to use some of the Rights Issue money on giving them much needed boosts KCB’s Non-Interest Income was buoyed by a 47.9% increase in its Fees and Commissions to Kshs. 6.9 Billion. Fees and Commissions now account for 67.3% of its Total Non-Interest Income Since the last 3 months, the tables have been turned and it is now Equity who trail KCB in Profit Before Tax by a figure of around Kshs. 100 Million. At Half Year, KCB trailed Equity by a similar figure and at 1st Quarter 2011, it stood at Kshs. 390 Million LINK: KENYA COMMERCIAL BANK POSTS 40% JUMP IN 9 MONTH PROFIT BEFORE TAX @Kenyainvestor, Thanks for your analysis. Just a point of correction, the 5.14 is the trailing pe not forward. Good analysis. I kept my faith in the lion.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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KCB Group's subsidiaries breaking even and posting profits all through FY2011 effectively plugs a 2B loss they contributed in FY2010. Watch out! ROOAR!!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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A 1.75 bob dividend is becoming more & more of a possible reality 
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Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
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A quick analysis of kcb's good performance !!!
Kenya Commercial Bank (KCB) announced 9 months performance results to September 2011 marking a 43% y/y (+4% q/q) rise in attributable earnings. Due to share dilution (33% rise in issued shares following rights issue in August 2010) EPS rose 7.5% y/y to KES 2.18. The group’s performance marginally outperformed our expectations. Performance was mainly driven by; improved NIM as WAIR on lending rose 80bp q/q, fully compensating for a 50bp q/q rise in WAIR on deposits, growth in fees and commission income (driven by increase in customer base to over 1.8m) and continued cost containment (while CTI remained little changed at 62.6%, management guide that there was a one-off cost related to the on-going business re-engineering). Most impressive in the results was the 56% y/y (>600% q/q) decline in loan loss provision due to rise in recoveries (recoveries increased 620% y/y, while total gross provision declined 13.4% y/y). Growth in balance sheet also impressed, with management attributing rise in loans assets to increased retail, corporate & mortgage lending. In 3Q11, total NPLs grew 6.6% q/q & 4.6% y/y. NPL ratio however continues to improve (7% in 3Q11, down from 9.2% & 7.2% in 3Q10 & 2Q11).
>Management remain optimistic on delivering robust performance in FY12 – mainly driven by sustained growth in SME business, higher returns from regional operations (especially following roll-out of mortgage products in Tanzania & Rwanda) and cost savings following continued implementation of business re-engineering process. On innovation, KCB recently launched its internet banking platform and by end of Sept 11, it had signed-on 1,300 agents to complement its Kenyan network of 170 branches.
>At current prices, KCB remains the cheapest bank at a PB of 1.1x. While the stock was one of the best performing banks on a YTD basis for a better part of the year, KCB is the 2nd worst performer m/m down 17.2% (only second to NIC that has declined 17.8% m/m). While we see positive price movement following the results announcement, it is likely that investors will remain cautious given KCB’s recent 400bp hike in base lending rate to 19% (while the move is likely to translate to higher NIM in FY12, it is likely to strain 41% of KCB’s loan book that is Micro & SME).
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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I believe there is plenty of time to board this bus for the dividend next year-this bus aint going far
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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QW25081985 wrote:A quick analysis of kcb's good performance !!!
Kenya Commercial Bank (KCB) announced 9 months performance results to September 2011 marking a 43% y/y (+4% q/q) rise in attributable earnings. Due to share dilution (33% rise in issued shares following rights issue in August 2010) EPS rose 7.5% y/y to KES 2.18. The group’s performance marginally outperformed our expectations. Performance was mainly driven by; improved NIM as WAIR on lending rose 80bp q/q, fully compensating for a 50bp q/q rise in WAIR on deposits, growth in fees and commission income (driven by increase in customer base to over 1.8m) and continued cost containment (while CTI remained little changed at 62.6%, management guide that there was a one-off cost related to the on-going business re-engineering). Most impressive in the results was the 56% y/y (>600% q/q) decline in loan loss provision due to rise in recoveries (recoveries increased 620% y/y, while total gross provision declined 13.4% y/y). Growth in balance sheet also impressed, with management attributing rise in loans assets to increased retail, corporate & mortgage lending. In 3Q11, total NPLs grew 6.6% q/q & 4.6% y/y. NPL ratio however continues to improve (7% in 3Q11, down from 9.2% & 7.2% in 3Q10 & 2Q11).
>Management remain optimistic on delivering robust performance in FY12 – mainly driven by sustained growth in SME business, higher returns from regional operations (especially following roll-out of mortgage products in Tanzania & Rwanda) and cost savings following continued implementation of business re-engineering process. On innovation, KCB recently launched its internet banking platform and by end of Sept 11, it had signed-on 1,300 agents to complement its Kenyan network of 170 branches.
>At current prices, KCB remains the cheapest bank at a PB of 1.1x. While the stock was one of the best performing banks on a YTD basis for a better part of the year, KCB is the 2nd worst performer m/m down 17.2% (only second to NIC that has declined 17.8% m/m). While we see positive price movement following the results announcement, it is likely that investors will remain cautious given KCB’s recent 400bp hike in base lending rate to 19% (while the move is likely to translate to higher NIM in FY12, it is likely to strain 41% of KCB’s loan book that is Micro & SME). Uhmm alot of misinformation in this post, NIM (NIM=net interest income/average earning assets) declined and npl y-y surged by 36%...always good to verify on your own.
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Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
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the deal wrote:QW25081985 wrote:A quick analysis of kcb's good performance !!!
Kenya Commercial Bank (KCB) announced 9 months performance results to September 2011 marking a 43% y/y (+4% q/q) rise in attributable earnings. Due to share dilution (33% rise in issued shares following rights issue in August 2010) EPS rose 7.5% y/y to KES 2.18. The group’s performance marginally outperformed our expectations. Performance was mainly driven by; improved NIM as WAIR on lending rose 80bp q/q, fully compensating for a 50bp q/q rise in WAIR on deposits, growth in fees and commission income (driven by increase in customer base to over 1.8m) and continued cost containment (while CTI remained little changed at 62.6%, management guide that there was a one-off cost related to the on-going business re-engineering). Most impressive in the results was the 56% y/y (>600% q/q) decline in loan loss provision due to rise in recoveries (recoveries increased 620% y/y, while total gross provision declined 13.4% y/y). Growth in balance sheet also impressed, with management attributing rise in loans assets to increased retail, corporate & mortgage lending. In 3Q11, total NPLs grew 6.6% q/q & 4.6% y/y. NPL ratio however continues to improve (7% in 3Q11, down from 9.2% & 7.2% in 3Q10 & 2Q11).
>Management remain optimistic on delivering robust performance in FY12 – mainly driven by sustained growth in SME business, higher returns from regional operations (especially following roll-out of mortgage products in Tanzania & Rwanda) and cost savings following continued implementation of business re-engineering process. On innovation, KCB recently launched its internet banking platform and by end of Sept 11, it had signed-on 1,300 agents to complement its Kenyan network of 170 branches.
>At current prices, KCB remains the cheapest bank at a PB of 1.1x. While the stock was one of the best performing banks on a YTD basis for a better part of the year, KCB is the 2nd worst performer m/m down 17.2% (only second to NIC that has declined 17.8% m/m). While we see positive price movement following the results announcement, it is likely that investors will remain cautious given KCB’s recent 400bp hike in base lending rate to 19% (while the move is likely to translate to higher NIM in FY12, it is likely to strain 41% of KCB’s loan book that is Micro & SME). Uhmm alot of misinformation in this post, NIM (NIM=net interest income/average earning assets) declined and npl y-y surged by 36%...always good to verify on your own. where are you getting npl y/y surged by 36% . unless you did your own calculation and that would be even worse...all in all loan book grew eps grew and most f all balance sheet grew . what mo' do we want ...if lookin for 100% company . it not in nse ...
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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Some dude has grabbed 93 shares(odd lots) at 7.50, a 50percent discount,takin advantage of the price limit waiver today. Poor seller. CMA should investigate this. @SufficientlyP
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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The market has responded positively to the KCB results so far.
Even if the excitement fades, we know that the price of -15 was way overdone and a retracement to that level will attract buyers.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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KCB Q3 ANTICIPATION
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