Wazua
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CFC Stanbic Results
Rank: Member Joined: 3/20/2008 Posts: 503
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Bank analysts, please analyse this one for me http://www.reuters.com/a...c-idUSLDE72K01820110321
thanks
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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Bank's EPS 12.1 from 6.51 last years. banks dividend is 2.38.
Insurance business EPS 0.54 from loss of 1.72 last year. Dividends not stated but i think hakuna.
GROUP EPS 5.86 with div of 0.804
SUMMARY:
...the bank part of the demerged CFC will be a buy with PE of about 6.5
... the insurance business is just bogus
verdict: just buy, the bank piece at 78 bob is worth it. the insurance bit ni ugali saucer
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Rank: New-farer Joined: 5/23/2010 Posts: 95 Location: Tikrit - IRAQ
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@ Madebe....whats the dividend to be paid?...Kshs 0.804 or Kshs 2.38?. ...Na hiyo insurance arm itakuwa kama how much hivi in the market? ...We do it for the $$$$!!
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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the div will be 0.804. but once the thing is demerged, the bank side will in most likelihood give the current year's div i.e 2.38
the insurance bit may cost a token ie at a pe of 10 it should cost ksh 5.4
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Rank: New-farer Joined: 5/23/2010 Posts: 95 Location: Tikrit - IRAQ
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@ Madebe...thanks for the reply....that means a dividend of 0.804 and a share worth about 5 bob that gives a total of 5.8Kshs...not bad at all. Hopin they will hasten the spinning wheels... ...We do it for the $$$$!!
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Rank: Member Joined: 1/31/2007 Posts: 304
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madebe wrote:Bank's EPS 12.1 from 6.51 last years. banks dividend is 2.38.
Insurance business EPS 0.54 from loss of 1.72 last year. Dividends not stated but i think hakuna.
GROUP EPS 5.86 with div of 0.804
SUMMARY:
...the bank part of the demerged CFC will be a buy with PE of about 6.5
... the insurance business is just bogus
verdict: just buy, the bank piece at 78 bob is worth it. the insurance bit ni ugali saucer
Can any one explain why the group Eps is 5.86 while the bank Eps is 12.1 and yet the insurance side is profitable..What could have brought the Eps down
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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@moneydust: the only explanation has to do with weighting. i assume the group has a lower percentage of the bank and a higher % of the insurance. but dont take that as a gospel truth. more details will come in annual report
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Rank: Member Joined: 3/20/2008 Posts: 503
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Anyone seen the actual results yet??? eg pdf on nse website??
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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@Madebe, the bank is owned almost fully by CFC Stanbic Holdings. The latest information that I have is that the bank has about 122 million shares in issue. On the other hand CFC Stanbic Holdings has almost 274 million shares issued.
The higher EPS in the bank does not therefore mean an equivalent EPS to you as a shareholder of CFC Stanbic Holdings after the demerger as you have to share out the bank's earnings over a higher number of shares.
In my view Kshs 78 is way too high to pay for the group as this PE still compares unfavourably with other financials when you also consider other factors such as growth etc. Guys who buy at these prices may get roasted when the full picture emerges.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@xxxxx check todays DN....its 6 pages of actual results...the insurance biz had a turnover of 5 billion shilling only to return PAT of 260 Million shillings...LMAO..no wonder the demerger.
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