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KCB buy buy buy
Ericsson
#1261 Posted : Friday, November 06, 2020 11:17:02 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
https://www.businessdail...ions-by-december-2732274
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1262 Posted : Wednesday, November 11, 2020 4:20:51 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
Ericsson wrote:
To get a good view of effect of COVID-19 on the financials I will summarize Quarter on quarter results;
Q1--8.9bn
Q2--3.9bn

Q3--4.3bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#1263 Posted : Wednesday, November 11, 2020 4:21:53 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,475
Location: nairobi
17.1b

HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
Ericsson
#1264 Posted : Wednesday, November 11, 2020 4:40:19 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
Performance was largely impacted by increased provision on loans and advances due to increased risk of credit default associated with the pandemic.

They are projecting recovery from second half of 2021
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1265 Posted : Wednesday, November 11, 2020 4:46:23 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
KCB Total Assets ksh.972bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#1266 Posted : Wednesday, November 11, 2020 7:52:55 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,475
Location: nairobi
Ericsson wrote:
KCB Total Assets ksh.972bn

A trillion, big machine!

HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
Ericsson
#1267 Posted : Friday, November 13, 2020 9:35:06 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
https://www.bloomberg.co...ry-on-virus-uncertainty

Biggest Kenyan Bank Pauses Ethiopian Entry on Virus Uncertainty

Kenya’s biggest bank put on hold plans to expand into Ethiopia where fighting between the federal government and a dissident region has resulted in hundreds of deaths and caused thousands to flee.

KCB Group Ltd. is waiting for the uncertainty caused by the coronavirus to settle before pursuing an entry into its northerly neighbor, Chief Executive Officer Joshua Oigara said. The Nairobi-based lender, which was looking to partner with an Ethiopian bank, will instead focus on the six markets it currently operates in, he said.

“The conversations for Ethiopia are not continuing for now,” the CEO said in an interview, without referring to the incursion. “It will have to happen once we are clear about how the pandemic goes.”
The lender’s profit in the nine months through September declined 43% compared with a year-earlier after provisions surged amid the economic fallout of the coronavirus. Going into next year, the company is projecting some recovery in East Africa as the countries adapt to living with Covid-19. KCB will still be on the look out for opportunities for its existing businesses.

“We remain very optimistic in markets like Rwanda, where we have always been very interested in increasing our presence,” Oigara said. “We are very much interested in enhancing capability in Tanzania, and obviously also in Uganda,” he said. “So we are on standby.”

The company will need to cut staff, which accounts for almost 45% of total expenses, the CEO said, without providing more details. It will further reduce costs such as leases, meals and travel by December.

“We are also looking very strongly at our own technology investments as we migrate transactions in those areas,” Oigara said. “That will also reduce any additional staff costs.”
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1268 Posted : Friday, November 13, 2020 11:42:24 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
Equity has set it's eyes on DRC for growth while KCB its Ethiopia.
Both countries have a big youthful population with Ethiopia being second most populous country and DRC fourth in Africa.
Both countries very volatile, DRC being the east and Ethiopia Tigray region.

If they get their act together returns are immense
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
tony stark
#1269 Posted : Friday, November 13, 2020 6:02:55 PM
Rank: Veteran


Joined: 7/8/2008
Posts: 947
Ericsson wrote:
Equity has set it's eyes on DRC for growth while KCB its Ethiopia.
Both countries have a big youthful population with Ethiopia being second most populous country and DRC fourth in Africa.
Both countries very volatile, DRC being the east and Ethiopia Tigray region.

If they get their act together returns are immense


Volatile makes it easier to charge 50% interest rate because of the risk. If the fintech lenders in Kenya were making money a bank can make money provided governments get out of the way.
Ericsson
#1270 Posted : Saturday, November 14, 2020 10:43:03 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
Ericsson wrote:
https://www.bloomberg.com/news/articles/2020-11-12/biggest-kenyan-bank-pauses-ethiopian-entry-on-virus-uncertainty

Biggest Kenyan Bank Pauses Ethiopian Entry on Virus Uncertainty

Kenya’s biggest bank put on hold plans to expand into Ethiopia where fighting between the federal government and a dissident region has resulted in hundreds of deaths and caused thousands to flee.

KCB Group Ltd. is waiting for the uncertainty caused by the coronavirus to settle before pursuing an entry into its northerly neighbor, Chief Executive Officer Joshua Oigara said. The Nairobi-based lender, which was looking to partner with an Ethiopian bank, will instead focus on the six markets it currently operates in, he said.

“The conversations for Ethiopia are not continuing for now,” the CEO said in an interview, without referring to the incursion. “It will have to happen once we are clear about how the pandemic goes.”
The lender’s profit in the nine months through September declined 43% compared with a year-earlier after provisions surged amid the economic fallout of the coronavirus. Going into next year, the company is projecting some recovery in East Africa as the countries adapt to living with Covid-19. KCB will still be on the look out for opportunities for its existing businesses.

“We remain very optimistic in markets like Rwanda, where we have always been very interested in increasing our presence,” Oigara said. “We are very much interested in enhancing capability in Tanzania, and obviously also in Uganda,” he said. “So we are on standby.”

The company will need to cut staff, which accounts for almost 45% of total expenses, the CEO said, without providing more details. It will further reduce costs such as leases, meals and travel by December.

“We are also looking very strongly at our own technology investments as we migrate transactions in those areas,” Oigara said. “That will also reduce any additional staff costs.”



They are looking at a probable acquisition in Rwanda, they could go for the Atlas Mara operation now that Atlas Mara has decided to sell in piecemeal.
Add that to a possible Ethiopia acquisition post covid-19.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1271 Posted : Sunday, November 15, 2020 7:52:15 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
https://citizentv.co.ke/...-ksh-29-billion-350940/

KCB Group has continued its clean up of the National Bank of Kenya (NBK) books with the lender’s share of gross non performing loans (NPLs) shrinking to Ksh.29 billion.

Acquired in 2019, NBK had been struggling under the weight of loan defaults, a concern that triggered KCB Group to delegate an asset recovery team to aid in the capture of outstanding loans.

The lender’s gross NPLs fell from Ksh.33 billion at the same time last year irrespective of COVID-19 shocks in the year which has deteriorated banking sector assets.

NBK nevertheless booked a reduced Ksh.87.9 million profit from Ksh.376.5 million last year on higher loan loss provisions costs which hit Ksh.619.5 million in the period.

KCB Group Chief Financial Officer says NBK turnaround remains a continuing story irrespective of the tough operating environment.

“NBK is a good story…a turn around story. We are looking to close the year with about Ksh.1 billion in profitability in spite of it being an abnormal year,” he said.

The sentiments echoed by the CFO mirror those given by KCB Group CEO Joshua Oigara in response to queries on the quality of the NBK buy earlier in March.

“Nobody goes to buy a fat cow unless you don’t know how to do business. If you buy a business where the market value has already been exploited, you would be putting shareholder funds to waste. If you are to ask the same question on whether I would still buy NBK, the answer is a yes,” he said.

NBK asset base jumped to Ksh.129.6 billion in the last nine months with net loans to customers growing to Ksh.53.4 billion from Ksh.47.9 billion last year.

Meanwhile, the bank’s customer deposits have improved to Ksh.102.6 billion from Ksh.82.7 billion at the same stage in 2019.

Moreover, NBK core capital has hit Ksh.6.6 billion to stay above the Ksh.1 billion regulatory buffer following new capital injection by KCB Group at the end of last year.


KCB lure of NBK stemmed from its high accumulation of government accounts which largely feature State and Ministerial Departments and Agencies (MDAs).
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#1272 Posted : Monday, November 16, 2020 5:40:04 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,055
Location: Nairobi
From July 2018
wukan wrote:
[quote=VituVingiSana]City Hall seeks lender to buy out Sh4.2bn KCB loan
https://www.businessdail...0462-hng6pgz/index.html[/quote]

Quote:
The defunct government refinanced the loan with KCB over what it claimed were unfavourable conditions set by Equity, including a lending rate of 20 per cent and a 60-month repayment period.

KCB bought out the loan in April 2014, slashing the lending rate to 13 per cent, lengthening maturity of the debt to eight years and giving a six-month grace repayment period.


Quite clearly interest rates are not the problem. Lower interest rates and longer maturity and still defaults. Resource allocation and management is the issue. Why would you borrow to pay taxes and pensions?d'oh! d'oh! #


KCB sues Nairobi County on Sh5 billion defaulted Equity loan
https://www.businessdail...lted-equity-loan-3022610
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#1273 Posted : Monday, November 16, 2020 5:42:40 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,055
Location: Nairobi
Lending to Gov't entities is often problematic.
https://www.businessdail...10bn-land-buyer-3021878 Portland, KCB eye Sh10bn land buyer

KCB will probably be repaid since GoK has a huge stake in EAPCC but it's hardly a straight line.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#1274 Posted : Monday, November 16, 2020 7:22:42 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
VituVingiSana wrote:
Lending to Gov't entities is often problematic.
https://www.businessdail...10bn-land-buyer-3021878 Portland, KCB eye Sh10bn land buyer

KCB will probably be repaid since GoK has a huge stake in EAPCC but it's hardly a straight line.


Problematic but at least you'll finally be paid.
Privateer you may never see the money.
Ref:ARM and Nakumatt
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1275 Posted : Tuesday, November 17, 2020 10:22:28 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
https://twitter.com/i/status/1328595820044820480

Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ebenyo
#1276 Posted : Tuesday, November 17, 2020 3:36:48 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
Ericsson wrote:
https://twitter.com/i/status/1328595820044820480



This will help increase the bank loan book.There will be good cash outlay lying idle.

Towards the goal of financial freedom
heri
#1277 Posted : Wednesday, November 18, 2020 7:57:52 AM
Rank: Member


Joined: 9/14/2011
Posts: 834
Location: nairobi
https://www.businessdail...g-on-covid-woes-3165546

Mr Oigara says that the rising cases of Covid-19 infections means the economic difficulties will take longer to start clearing, with the best case scenario being June next year.
Sir invest
#1278 Posted : Wednesday, November 18, 2020 12:08:48 PM
Rank: Member


Joined: 8/19/2015
Posts: 124
These bank stocks tutanunua Tatu-Kumi kama nyanya. Its not the right time to buy in a few months the prices will drop.
Ericsson
#1279 Posted : Wednesday, November 18, 2020 12:46:53 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,639
Location: NAIROBI
heri wrote:
https://www.businessdailyafrica.com/bd/corporate/companies/kcb-likely-profit-warning-on-covid-woes-3165546

Mr Oigara says that the rising cases of Covid-19 infections means the economic difficulties will take longer to start clearing, with the best case scenario being June next year.


This was mentioned earlier in post 1264
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
mlennyma
#1280 Posted : Wednesday, November 18, 2020 1:08:06 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,175
Location: nairobi
Sir invest wrote:
These bank stocks tutanunua Tatu-Kumi kama nyanya. Its not the right time to buy in a few months the prices will drop.

Ngoja vaccine ununue cheap stocks
"Don't let the fear of losing be greater than the excitement of winning."
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