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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Horton wrote:Small fry banks may have issues with IFRS 9 compliance. With reference to KCB Annual report 2016, they reckon the impact on LLPs will be 200-250 BP which doesn’t sound as alarmist as bizdaily.
Seems like there is a lot of contrary information out there though. A lot of cooking is going on at KCB. 200-250 bps of the total loan book as additional NPLs? That's a lot of billions! I use the SLR as my guide & KCB's is the highest (even as a % of capital) among listed banks. Kelele ya chura haimzui ng'ombe kunywa maji Ahhh! Ad hominem attacks! Well done. 👏🏼👏🏼👏🏼 Doesn’t change the truth that there’s something rotten in the state of Kencom. KCB has a SLR of 15bn vs Equity’s 2.2bn vs BBK/SCBK’s Nil Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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VituVingiSana wrote:Horton wrote:Small fry banks may have issues with IFRS 9 compliance. With reference to KCB Annual report 2016, they reckon the impact on LLPs will be 200-250 BP which doesn’t sound as alarmist as bizdaily.
Seems like there is a lot of contrary information out there though. A lot of cooking is going on at KCB. 200-250 bps of the total loan book as additional NPLs? That's a lot of billions! I use the SLR as my guide & KCB's is the highest (even as a % of capital) among listed banks. That’s 300m for a relatively stronger bank? That’s like 0.10 of dividend per share. Mpfff!!!!! This green giant will be 50+ in April.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Horton wrote:VituVingiSana wrote:Horton wrote:Small fry banks may have issues with IFRS 9 compliance. With reference to KCB Annual report 2016, they reckon the impact on LLPs will be 200-250 BP which doesn’t sound as alarmist as bizdaily.
Seems like there is a lot of contrary information out there though. A lot of cooking is going on at KCB. 200-250 bps of the total loan book as additional NPLs? That's a lot of billions! I use the SLR as my guide & KCB's is the highest (even as a % of capital) among listed banks. That’s 300m for a relatively stronger bank? That’s like 0.10 of dividend per share. Mpfff!!!!! This green giant will be 50+ in April. Expect a major hit on KCB...that one is given! Watch & learn.... Hope is not a strategy. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Spikes wrote:Horton wrote:VituVingiSana wrote:Horton wrote:Small fry banks may have issues with IFRS 9 compliance. With reference to KCB Annual report 2016, they reckon the impact on LLPs will be 200-250 BP which doesn’t sound as alarmist as bizdaily.
Seems like there is a lot of contrary information out there though. A lot of cooking is going on at KCB. 200-250 bps of the total loan book as additional NPLs? That's a lot of billions! I use the SLR as my guide & KCB's is the highest (even as a % of capital) among listed banks. That’s 300m for a relatively stronger bank? That’s like 0.10 of dividend per share. Mpfff!!!!! This green giant will be 50+ in April. Expect a major hit on KCB...that one is given! Watch & learn.... Hope is not a strategy. Nothing is “given” to a contrarian i do my own research
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Rank: Chief Joined: 1/3/2007 Posts: 18,050 Location: Nairobi
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Horton wrote:VituVingiSana wrote:Horton wrote:Small fry banks may have issues with IFRS 9 compliance. With reference to KCB Annual report 2016, they reckon the impact on LLPs will be 200-250 BP which doesn’t sound as alarmist as bizdaily.
Seems like there is a lot of contrary information out there though. A lot of cooking is going on at KCB. 200-250 bps of the total loan book as additional NPLs? That's a lot of billions! I use the SLR as my guide & KCB's is the highest (even as a % of capital) among listed banks. That’s 300m for a relatively stronger bank? That’s like 0.10 of dividend per share. Mpfff!!!!! This green giant will be 50+ in April. Please explain the KES 300mn calculation. I am eager to learn. Thanks. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. possunt quia posse videntur
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. There is no bank in Kenya that can loan a single customer ksh.50bn. Most of Kenya Power's loans are from DFIs,World Bank,EIB,EXIM bank of China Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Ericsson wrote:maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. There is no bank in Kenya that can loan a single customer ksh.50bn. Most of Kenya Power's loans are from DFIs,World Bank,EIB,EXIM bank of China Never wrote that artcile.. http://www.nation.co.ke/...12708-ol5im6/index.html
Let me send him an email he tells me where he got the info... possunt quia posse videntur
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. So are you insinuating that this is KCB?
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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maka wrote:Ericsson wrote:maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. There is no bank in Kenya that can loan a single customer ksh.50bn. Most of Kenya Power's loans are from DFIs,World Bank,EIB,EXIM bank of China Never wrote that artcile.. http://www.nation.co.ke/...12708-ol5im6/index.html
Let me send him an email he tells me where he got the info... I have gone through the annual report;the sh.50bn is not a loan to a local bank but to Standard Chartered Bank PLC Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:maka wrote:Ericsson wrote:maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. There is no bank in Kenya that can loan a single customer ksh.50bn. Most of Kenya Power's loans are from DFIs,World Bank,EIB,EXIM bank of China Never wrote that artcile.. http://www.nation.co.ke/...12708-ol5im6/index.html
Let me send him an email he tells me where he got the info... I have gone through the annual report;the sh.50bn is not a loan to a local bank but to Standard Chartered Bank PLC adequate research is your friend, as Ericsson said, this was from Stanchart PLC http://www.businessdaily...272812-1dvndz/index.html
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Horton wrote:Ericsson wrote:maka wrote:Ericsson wrote:maka wrote:According to the company’s 2016 annual accounts, borrowing ballooned to a massive Sh105 billion last year, causing finance costs to hit the roof. It is not incredible that one local commercial bank is exposed to Kenya Power to the extent of a massive Sh50 billion. There is no bank in Kenya that can loan a single customer ksh.50bn. Most of Kenya Power's loans are from DFIs,World Bank,EIB,EXIM bank of China Never wrote that artcile.. http://www.nation.co.ke/...12708-ol5im6/index.html
Let me send him an email he tells me where he got the info... I have gone through the annual report;the sh.50bn is not a loan to a local bank but to Standard Chartered Bank PLC adequate research is your friend, as Ericsson said, this was from Stanchart PLC http://www.businessdaily...72812-1dvndz/index.html[/quote] Loan by many lenders organized by SCB [qoute]What is a 'Syndicated Loan' A syndicated loan, also known as a syndicated bank facility, is a loan offered by a group of lenders – referred to as a syndicate – that work together to provide funds for a single borrower. The borrower could be a corporation, a large project or a sovereignty, such as a government. The loan can involve a fixed amount of funds, a credit line or a combination of the two ~ Investopedia Life is short. Live passionately.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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From Jaindi... i hear you ******- you are right with respect to the 25 per cent single borrower limit. The capital base can not support that level of borrowing. The rule allows banks to break the single borrower limit rule only if they are lending to the state or to a 100 per cent state owned entity. KPLC is not. Please grab a copy of KPLC's 2006 accounts and have a look at the information disclosed in the NOTES. When i asked the CEO of KPLC, they said those are monies on lent to them by the government and that Standard Chartered was just but an arranger. Which begs the question: if the sh 50 billion is on lent to them, why does it appear on KPLC's balance sheet in the first place and as money lent to them by Stanchart? Let's keep the discussion going possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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@Ericsonn...Horton...Response... possunt quia posse videntur
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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maka wrote:From Jaindi...
i hear you ******- you are right with respect to the 25 per cent
single borrower limit. The capital base can not support that level of
borrowing. The rule allows banks to break the single borrower limit
rule only if they are lending to the state or to a 100 per cent state
owned entity. KPLC is not. Please grab a copy of KPLC's 2006 accounts
and have a look at the information disclosed in the NOTES. When i
asked the CEO of KPLC, they said those are monies on lent to them by
the government and that Standard Chartered was just but an arranger.
Which begs the question: if the sh 50 billion is on lent to them,
why does it appear on KPLC's balance sheet in the first place and as
money lent to them by Stanchart? Let's keep the discussion going
Because SCB is the syndicate arranger? Life is short. Live passionately.
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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sparkly wrote:maka wrote:From Jaindi...
i hear you ******- you are right with respect to the 25 per cent
single borrower limit. The capital base can not support that level of
borrowing. The rule allows banks to break the single borrower limit
rule only if they are lending to the state or to a 100 per cent state
owned entity. KPLC is not. Please grab a copy of KPLC's 2016 accounts
and have a look at the information disclosed in the NOTES. When i
asked the CEO of KPLC, they said those are monies on lent to them by
the government and that Standard Chartered was just but an arranger.
Which begs the question: if the sh 50 billion is on lent to them,
why does it appear on KPLC's balance sheet in the first place and as
money lent to them by Stanchart? Let's keep the discussion going
Because SCB is the syndicate arranger? 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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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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maka wrote:@Ericsonn...Horton...Response... I have read the annual report.Standard Chartered PLC lent KPLC the money. The money is not guaranteed by GoK but KPLC has pledged some of its assets as securities. This is a commercial loan not on-lent. Commercial borrowingsStandard Chartered Bank Loan (USD 350,000,000) 36,299,095 35,385,770 Standard Chartered Bank Loan 15,180,000 15,180,00 Standard Chartered Bank loans are secured by letters of negative pledge. All other loans are guaranteed by the Government of Kenya.Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/1/2014 Posts: 895 Location: sky
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https://www.african-markets.com/en/news/east-africa/sudan/sudan-to-devalue-pound-currency-from-6-7-to-18-per-dollar-in-january?utm_source=Sociallymap&utm_medium=Sociallymap&utm_campaign=Sociallymapkenyan banks in south sudan face devaluation loss yet again There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Title is sudan not south sudan.Those are two different countries Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/1/2014 Posts: 895 Location: sky
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Ericsson wrote:Title is sudan not south sudan.Those are two different countries noted, but the image on the article shows south sudan There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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