obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:Ebenyo wrote:babashuge wrote:obiero wrote:Ebenyo wrote:I did my own analysis of banks and realised Barclays is doing better than most of of the listed lenders;
NON PERFORMING LOANS
Barclays-8%
Kcb-7%
Equity-8%
Co-op-12%
I&M-14%
LOAN LOSS PROVISION
Barclays- 4%
Kcb-3%
Equity-3%
Co-op-4%
I&M-5%
INTEREST EXPENSE
Barclays-24%
Kcb-26%
Equity-22%
Co-op-28%
I&M-40%
How would interest expense be a percentage
Their papers and wallet have been ok for the last few years but what i wonder is whats the deal with all this closing of branches, is it a sign of inability to get new customers, cost cutting to keep the balance sheets pretty, or some part of some moving to digital strategy...
Is it a good thing?
Based on my statistics,the reason is consolidation.They are trying to preserve their capital.They are no longer the market leaders they used to be and have accepted the reality.
They took a more conservative approach thats neither robust(like kcb and equity) nor a mean approach(like co-op).
Going forward,i see them stabilising slowly and buoyed by separation from the UK father,they will try to grow slowly.
Slow growth in a rapidly expanding sector is as good as death
BUT unlike some firms, BBK doesn't have net debt. Doesn't need a Rights Issue. Pays a healthy dividend.
Sounding like a broken record chief.. How's ARM doing? Likely to resume trading?
ARM? Dead. Kabisa. No bailout. Nothing. Zero. Hapana.
BTW, did BBK make loans to ARM or KQ?
Has it ever had recent capacity to lend to any serious Kenyan corporate.. What is their core capital? L:D ratio?
I don't follow/have BBK so I don't look at it in detail BUT the the Dividend Yield is attractive. I can't answer your question but perhaps @Ebenyo can.
BBK (& SCBK) were among the smart banks that didn't lend to a money pit like KQ.
That said, unfortunately my buddy JM of Equity lent 5bn to KQ.
I&M lent 800mn.
NIC lent 3bn.
And I have shares in all 3. I don't know why local banks got sucked in.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett