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19 Pages«<16171819>
KCB 2018 and Beyond
Ericsson
#341 Posted : Sunday, August 18, 2019 9:50:47 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
KCB dividend payout in FY2019 to be maintained at the level of 2018
obiero
#342 Posted : Sunday, August 18, 2019 12:30:19 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,185
Location: nairobi
Ericsson wrote:
KCB dividend payout in FY2019 to be maintained at the level of 2018

Weka link
COOP 5,500; KCB 7,500; KNRE 100,000; KQ 221,100
Ericsson
#343 Posted : Sunday, August 18, 2019 3:48:20 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
obiero wrote:
Ericsson wrote:
KCB dividend payout in FY2019 to be maintained at the level of 2018

Weka link


Circular on the proposed NBK acquisition
VituVingiSana
#344 Posted : Monday, August 19, 2019 12:41:16 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,290
Location: Nairobi
https://www.businessdail...40306-p70mht/index.html
KCB worker count falls by 240 as more cuts loom
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ebenyo
#345 Posted : Monday, August 19, 2019 7:59:51 AM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,702
Location: Kitale
VituVingiSana wrote:
https://www.businessdailyafrica.com/corporate/companies/KCB-worker-count-falls-by-240-as-more-cuts-loom/4003102-5240306-p70mht/index.html
KCB worker count falls by 240 as more cuts loom




This will help in lowering costs.
Towards the goal of financial freedom
Ericsson
#346 Posted : Monday, August 26, 2019 4:11:35 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
Saw a bid of 50,000 shares at 37
Ericsson
#347 Posted : Tuesday, September 03, 2019 11:59:02 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
Interim dividend book closure is on Thursday 5th September 2019
Ericsson
#348 Posted : Wednesday, September 04, 2019 5:04:20 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
https://www.businessdail...9638-95acwqz/index.html

Eight local banks led by KCB Group and Co-op Bank have committed a total of Sh1 billion in Kenya Mortgage Refinance Company (KMRC), a public-private company that will provide long term funding to financial institutions offering housing loans.

The latest KMRC’s shareholding structure seen by Business Daily shows that the upcoming lender has received funding from the National Treasury, the eight banks, 11 saccos, the International Finance Corporation, Shelter Afrique and KWFT (a microfinance firm).

Among the banks, KCB has the largest capital commitment of Sh600 million that will entitle it to a 25.3 percent stake once all the shareholders pay up their capital in full. The country’s biggest bank by assets has already paid Sh325 million and is set to pay the remaining Sh275 million.

KMRC has so far raised Sh1.6 billion from its shareholders but the total capital commitment stands at Sh2.3 billion.

Co-op Bank has provided Sh200 million for which it will get an 8.4 percent stake while the merged NIC/CBA, HF Group, Barclays Bank of Kenya and DTB Group will each receive a 2.1 percent equity for their capital of Sh50 million each.
Stanbic Bank and Credit Bank have invested Sh20 million and Sh10 million in KMRC respectively and will be allotted stakes of 0.8 percent and 0.4 percent. The National Treasury will be single largest shareholder of the institution once it pays up Sh800 million in full, having made an initial payment of Sh325 million.

IFC and Shelter Afrique will each get an 8.4 percent stake for their investment of Sh200 million each. Other shareholders of KMRC include saccos such as Kenya Police, Safaricom, and Mwalimu National.
Ericsson
#349 Posted : Thursday, September 05, 2019 11:58:26 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
https://kenyanwallstreet...e-land-to-settle-debts/

East African Portland Cement Company seeks to sell part of its idle land to raise working capital pending approval of an extraordinary general meeting to be held on September 27, 2019.

Board chairman in a memo asked the shareholders to consider disposing of two parcels 745 acres and 1329.95 acres in the Mavoko sub-county in Machakos.

The sale he says will enable the troubled firm to clear all loan obligations, raise funds of operational, and plant refurbishment.

However, the EAPCC will need to evict squatters before declaring the land ready for sale. Part of the cash raised in the current sail will service an Sh5.38 billion KCB loan.
heri
#350 Posted : Thursday, September 05, 2019 1:45:46 PM
Rank: Member


Joined: 9/14/2011
Posts: 676
Location: nairobi
Ericsson wrote:
https://kenyanwallstreet.com/ea-portland-to-sell-idle-land-to-settle-debts/

East African Portland Cement Company seeks to sell part of its idle land to raise working capital pending approval of an extraordinary general meeting to be held on September 27, 2019.

Board chairman in a memo asked the shareholders to consider disposing of two parcels 745 acres and 1329.95 acres in the Mavoko sub-county in Machakos.

The sale he says will enable the troubled firm to clear all loan obligations, raise funds of operational, and plant refurbishment.

However, the EAPCC will need to evict squatters before declaring the land ready for sale. Part of the cash raised in the current sail will service an Sh5.38 billion KCB loan.


while KCB and other banks shares may look enticing as investments, are the loan books not scary?
Horton
#351 Posted : Thursday, September 05, 2019 2:02:11 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,448
Location: Nairobi
heri wrote:
Ericsson wrote:
https://kenyanwallstreet.com/ea-portland-to-sell-idle-land-to-settle-debts/

East African Portland Cement Company seeks to sell part of its idle land to raise working capital pending approval of an extraordinary general meeting to be held on September 27, 2019.

Board chairman in a memo asked the shareholders to consider disposing of two parcels 745 acres and 1329.95 acres in the Mavoko sub-county in Machakos.

The sale he says will enable the troubled firm to clear all loan obligations, raise funds of operational, and plant refurbishment.

However, the EAPCC will need to evict squatters before declaring the land ready for sale. Part of the cash raised in the current sail will service an Sh5.38 billion KCB loan.


while KCB and other banks shares may look enticing as investments, are the loan books not scary?


Pocket change for KCB
mlennyma
#352 Posted : Thursday, September 05, 2019 2:27:09 PM
Rank: Elder


Joined: 7/21/2010
Posts: 5,955
Location: nairobi
Horton wrote:
heri wrote:
Ericsson wrote:
https://kenyanwallstreet.com/ea-portland-to-sell-idle-land-to-settle-debts/

East African Portland Cement Company seeks to sell part of its idle land to raise working capital pending approval of an extraordinary general meeting to be held on September 27, 2019.

Board chairman in a memo asked the shareholders to consider disposing of two parcels 745 acres and 1329.95 acres in the Mavoko sub-county in Machakos.

The sale he says will enable the troubled firm to clear all loan obligations, raise funds of operational, and plant refurbishment.

However, the EAPCC will need to evict squatters before declaring the land ready for sale. Part of the cash raised in the current sail will service an Sh5.38 billion KCB loan.


while KCB and other banks shares may look enticing as investments, are the loan books not scary?


Pocket change for KCB

the same land government wanted to take and build affordable houses,can government buy or take?hope kcb has a good collateral for it's stake here.
"Don't let the fear of losing be greater than the excitement of winning."
Ericsson
#353 Posted : Thursday, September 05, 2019 2:49:53 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
NBK acquisition will weaken KCB Group’s financials in the short term – Moody’s

Moody’s Investors Service says that the acquisition of the National Bank of Kenya (NBK) would be an immediate credit negative for KCB Group but profitability and funding will strengthen over the next 2-3 years, outweighing these short term effects.

Short term weakened financial

In the short term, the acquisition weakens KCB because NBK has a high stock of problem loans making NBK less solvent than KCB Group. KCB Group will handle the bad loans through write-offs and increase provisioning to reduce risks.

In addition, NBK’s low capitalization will lead to a slight deterioration of KCB Group’s capital adequacy albeit above regulatory requirements and that of global peers. In this case, KCB Group shareholders’ pro forma equity to total asset ratio will decline to 15.0% from 15.9% as of 31 December 2018.

Long-term profitability and funding

However, KCB Group will experience gradually stronger profitability and funding over the next two to three years. First, KCB will integrate Sh58 billion government deposits on NBK’s balance sheet thus the combined entity will hold around 62% of Kenya’s government deposits.

Government deposits are cheaper thus will reduce KCB Group’s overall funding costs. Moreover, the deposits have high net interest margins thus will improve profitability.

Furthermore, KCB Group will diversify its revenue base by generating additional transactional revenue by leveraging on NBK’s large government-related business flows.

There is an expectation of greater operational efficiency once the merged entity integrates and rationalizes the various operating channels.

A gain for Kenyan banking sector

Finally, the banking sector is set to gain from the acquisition by removing a distressed bank through consolidation leading to stability in an overbanked system. KCB Group assets will grow to around KSh830 billion from the Ksh622 billion at year-end 2018. This will consolidate KCB’s leading position in the banking sector with an asset-based combined market share of more than 16%, from 14% as of December 2018.

https://kenyanwallstreet...n-the-short-term-moodys/
Ericsson
#354 Posted : Thursday, September 05, 2019 4:41:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
murchr
#355 Posted : Thursday, September 05, 2019 7:14:57 PM
Rank: Elder


Joined: 2/26/2012
Posts: 14,813


Must have been his worst bet
Sept 2013 - Sold Safaricom at 7 bought KCB at 45
2019 Safaricom at 26 KCB at 40


"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
mwekez@ji
#356 Posted : Thursday, September 05, 2019 9:22:51 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,091
CK must have already sold in 2015 at Kes 60+

VituVingiSana
#357 Posted : Friday, September 06, 2019 6:12:58 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,290
Location: Nairobi
Ericsson wrote:
NBK acquisition will weaken KCB Group’s financials in the short term – Moody’s

Moody’s Investors Service says that the acquisition of the National Bank of Kenya (NBK) would be an immediate credit negative for KCB Group but profitability and funding will strengthen over the next 2-3 years, outweighing these short term effects.

Short term weakened financial

In the short term, the acquisition weakens KCB because NBK has a high stock of problem loans making NBK less solvent than KCB Group. KCB Group will handle the bad loans through write-offs and increase provisioning to reduce risks.

In addition, NBK’s low capitalization will lead to a slight deterioration of KCB Group’s capital adequacy albeit above regulatory requirements and that of global peers. In this case, KCB Group shareholders’ pro forma equity to total asset ratio will decline to 15.0% from 15.9% as of 31 December 2018.

Long-term profitability and funding

However, KCB Group will experience gradually stronger profitability and funding over the next two to three years. First, KCB will integrate Sh58 billion government deposits on NBK’s balance sheet thus the combined entity will hold around 62% of Kenya’s government deposits.

Government deposits are cheaper thus will reduce KCB Group’s overall funding costs. Moreover, the deposits have high net interest margins thus will improve profitability.

Furthermore, KCB Group will diversify its revenue base by generating additional transactional revenue by leveraging on NBK’s large government-related business flows.

There is an expectation of greater operational efficiency once the merged entity integrates and rationalizes the various operating channels.

A gain for Kenyan banking sector

Finally, the banking sector is set to gain from the acquisition by removing a distressed bank through consolidation leading to stability in an overbanked system. KCB Group assets will grow to around KSh830 billion from the Ksh622 billion at year-end 2018. This will consolidate KCB’s leading position in the banking sector with an asset-based combined market share of more than 16%, from 14% as of December 2018.

https://kenyanwallstreet...-the-short-term-moodys/

GoK should move most of its deposits to CBK. Why borrow using T-Bills and leave the cash with banks?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#358 Posted : Friday, September 06, 2019 7:16:45 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,185
Location: nairobi
VituVingiSana wrote:
Ericsson wrote:
NBK acquisition will weaken KCB Group’s financials in the short term – Moody’s

Moody’s Investors Service says that the acquisition of the National Bank of Kenya (NBK) would be an immediate credit negative for KCB Group but profitability and funding will strengthen over the next 2-3 years, outweighing these short term effects.

Short term weakened financial

In the short term, the acquisition weakens KCB because NBK has a high stock of problem loans making NBK less solvent than KCB Group. KCB Group will handle the bad loans through write-offs and increase provisioning to reduce risks.

In addition, NBK’s low capitalization will lead to a slight deterioration of KCB Group’s capital adequacy albeit above regulatory requirements and that of global peers. In this case, KCB Group shareholders’ pro forma equity to total asset ratio will decline to 15.0% from 15.9% as of 31 December 2018.

Long-term profitability and funding

However, KCB Group will experience gradually stronger profitability and funding over the next two to three years. First, KCB will integrate Sh58 billion government deposits on NBK’s balance sheet thus the combined entity will hold around 62% of Kenya’s government deposits.

Government deposits are cheaper thus will reduce KCB Group’s overall funding costs. Moreover, the deposits have high net interest margins thus will improve profitability.

Furthermore, KCB Group will diversify its revenue base by generating additional transactional revenue by leveraging on NBK’s large government-related business flows.

There is an expectation of greater operational efficiency once the merged entity integrates and rationalizes the various operating channels.

A gain for Kenyan banking sector

Finally, the banking sector is set to gain from the acquisition by removing a distressed bank through consolidation leading to stability in an overbanked system. KCB Group assets will grow to around KSh830 billion from the Ksh622 billion at year-end 2018. This will consolidate KCB’s leading position in the banking sector with an asset-based combined market share of more than 16%, from 14% as of December 2018.

https://kenyanwallstreet...-the-short-term-moodys/

GoK should move most of its deposits to CBK. Why borrow using T-Bills and leave the cash with banks?

You expect, for example, a road project by KENHA in Loitoktok to be administered via a CBK account and not a commercial bank? Contractors certificate based payment to be done by CBK minus KENHA mandated signatories on the ground? What would such a scenario imply on the liquidity ratio of most Kenyan banks?
COOP 5,500; KCB 7,500; KNRE 100,000; KQ 221,100
Ericsson
#359 Posted : Friday, September 06, 2019 8:45:19 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,248
Location: NAIROBI
obiero wrote:
VituVingiSana wrote:
Ericsson wrote:
NBK acquisition will weaken KCB Group’s financials in the short term – Moody’s

Moody’s Investors Service says that the acquisition of the National Bank of Kenya (NBK) would be an immediate credit negative for KCB Group but profitability and funding will strengthen over the next 2-3 years, outweighing these short term effects.

Short term weakened financial

In the short term, the acquisition weakens KCB because NBK has a high stock of problem loans making NBK less solvent than KCB Group. KCB Group will handle the bad loans through write-offs and increase provisioning to reduce risks.

In addition, NBK’s low capitalization will lead to a slight deterioration of KCB Group’s capital adequacy albeit above regulatory requirements and that of global peers. In this case, KCB Group shareholders’ pro forma equity to total asset ratio will decline to 15.0% from 15.9% as of 31 December 2018.

Long-term profitability and funding

However, KCB Group will experience gradually stronger profitability and funding over the next two to three years. First, KCB will integrate Sh58 billion government deposits on NBK’s balance sheet thus the combined entity will hold around 62% of Kenya’s government deposits.

Government deposits are cheaper thus will reduce KCB Group’s overall funding costs. Moreover, the deposits have high net interest margins thus will improve profitability.

Furthermore, KCB Group will diversify its revenue base by generating additional transactional revenue by leveraging on NBK’s large government-related business flows.

There is an expectation of greater operational efficiency once the merged entity integrates and rationalizes the various operating channels.

A gain for Kenyan banking sector

Finally, the banking sector is set to gain from the acquisition by removing a distressed bank through consolidation leading to stability in an overbanked system. KCB Group assets will grow to around KSh830 billion from the Ksh622 billion at year-end 2018. This will consolidate KCB’s leading position in the banking sector with an asset-based combined market share of more than 16%, from 14% as of December 2018.

https://kenyanwallstreet...-the-short-term-moodys/

GoK should move most of its deposits to CBK. Why borrow using T-Bills and leave the cash with banks?

You expect, for example, a road project by KENHA in Loitoktok to be administered via a CBK account and not a commercial bank? Contractors certificate based payment to be done by CBK minus KENHA mandated signatories on the ground? What would such a scenario imply on the liquidity ratio of most Kenyan banks?


Forgive him coz he doesn't know what he's talking about
VituVingiSana
#360 Posted : Friday, September 06, 2019 9:08:41 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,290
Location: Nairobi
obiero wrote:
VituVingiSana wrote:
Ericsson wrote:
NBK acquisition will weaken KCB Group’s financials in the short term – Moody’s

Moody’s Investors Service says that the acquisition of the National Bank of Kenya (NBK) would be an immediate credit negative for KCB Group but profitability and funding will strengthen over the next 2-3 years, outweighing these short term effects.

Short term weakened financial

In the short term, the acquisition weakens KCB because NBK has a high stock of problem loans making NBK less solvent than KCB Group. KCB Group will handle the bad loans through write-offs and increase provisioning to reduce risks.

In addition, NBK’s low capitalization will lead to a slight deterioration of KCB Group’s capital adequacy albeit above regulatory requirements and that of global peers. In this case, KCB Group shareholders’ pro forma equity to total asset ratio will decline to 15.0% from 15.9% as of 31 December 2018.

Long-term profitability and funding

However, KCB Group will experience gradually stronger profitability and funding over the next two to three years. First, KCB will integrate Sh58 billion government deposits on NBK’s balance sheet thus the combined entity will hold around 62% of Kenya’s government deposits.

Government deposits are cheaper thus will reduce KCB Group’s overall funding costs. Moreover, the deposits have high net interest margins thus will improve profitability.

Furthermore, KCB Group will diversify its revenue base by generating additional transactional revenue by leveraging on NBK’s large government-related business flows.

There is an expectation of greater operational efficiency once the merged entity integrates and rationalizes the various operating channels.

A gain for Kenyan banking sector

Finally, the banking sector is set to gain from the acquisition by removing a distressed bank through consolidation leading to stability in an overbanked system. KCB Group assets will grow to around KSh830 billion from the Ksh622 billion at year-end 2018. This will consolidate KCB’s leading position in the banking sector with an asset-based combined market share of more than 16%, from 14% as of December 2018.

https://kenyanwallstreet...-the-short-term-moodys/

GoK should move most of its deposits to CBK. Why borrow using T-Bills and leave the cash with banks?

You expect, for example, a road project by KENHA in Loitoktok to be administered via a CBK account and not a commercial bank? Contractors certificate based payment to be done by CBK minus KENHA mandated signatories on the ground? What would such a scenario imply on the liquidity ratio of most Kenyan banks?

A commercial bank can do all you say, with KenHa approving the payment, and then submit a "debit note" to CBK for payment/credit in the Clearing House.

CBK then credits the bank eg KCB for the amount of the debit note AFTER the bank eg KCB and KENHA have completed their approvals and paid the contractor.

The bank/KCB can charge a fee for the service to KENHA. So far CBK gas not bounced cheques.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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