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34 Pages«<3031323334>
KCB 2018 and Beyond
VituVingiSana
#621 Posted : Wednesday, March 23, 2022 9:28:59 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,812
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
My 2 cents wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
watesh wrote:
With that tiny payout ratio, I hope they are acquiring a major bank in DRC
At 2x what Equity paid.
Mwangi > Oigara

Mwangi: Significant shareholder, salary is lower for the same performance, organic growth (not government supported), looks for bargains.
Oigara: Token, 200-300mn, GoK favoritism, pays more.


Your hatred towards KCB waah.
Equity also got government support during the NARC and Grand coalition regime which propelled it's growth.
How sure are you they will pay 2x what Equity paid.
Meanwhile KCB shareholders continue to enjoy the consistent dividend,Equity is very mean when it comes to dividends and even took shareholders on a two year drought without dividend.
FY2021 results not yet out,might be a third year.

Most banks grew during the Kibaki 1 era.

Equity did very well taking business from Barclays and Stanchart that abandoned Kenyans pale mashinani. I heard that Stanchart is closing the Kiambu branch which had been around for decades!

Equity has NEVER had a Rights Issue since it listed - it only raised money once when it sold 25% to Helios. KCB has had multiple.

KCB has only significantly (as a % of total assets) grown its balance sheet in KE.
Very small business elsewhere (vs Equity) where it doesn't have GoK's support.


Beware that KCB (like Safaricom) does not become one of your investing 'misses'. At least hedge your anti- KCB position by buying a few.


@vvs prefers buying DTB
I am a Value Investor.
Equity is cheaper than KCB on a (future) growth basis.
DTB needs to pull its socks up.

If I had the cash I would rather buy Equity (low PER and higher growth), SCBK (high DPR, DY) and DTB (low PER/PB) over KCB.

We can compare Total Returns for each in April 2027.


Looking at cash returns KCB will give a better return in terms of dividend payout than Equity.
DTB over KCB that is madness,KCB will beat DTB pants down 18 nil.
Let's compare in 2027.
April 2027 it is.

Let's go with: [I am using current prices from myStocks 23 Mar 2022]

My portfolio (KES 1mn):
33.33% SCBK 141/- cd (2,364 shares)
33.33% Equity 52/- cd (6,410 shares)
33.33% DTB 57/- cd (5,848 shares) [waiting for the announcement]

Yours (1mn) all in KCB at 44 cd (22,727 shares)
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#622 Posted : Wednesday, July 06, 2022 11:36:52 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
KCB Group has become the eighth lender to get funds amounting to Sh1.8 billion for refinancing home loans under the state-backed plan which seeks to increase house ownership largely amongst workers earning less than Sh150,000 a month.
https://www.businessdail...cheap-mortgages-3870196

The Kenya Mortgage Refinancing Company (KMRC) said it has disbursed the funds to the country’s largest home loans financier by market share after several months of due diligence on mortgages to be funded.

“The KCB mortgage portfolio was very large [and], therefore, the security registration process took long,” KMRC said in an emailed response to Business Daily.

The amount tapped by KCB from KMRC is the largest to a single financier for on-ward lending to homeowners and is 38.46 percent more than Sh1.34 billion advanced to seven lenders — three banks and four saccos — last year.
Co-op Bank, which accounted for 5.6 percent of the residential mortgages market last year, tapped what was previously the highest amount from KMRC at Sh550 million, followed by HFC Ltd (Sh515 million).

Others were Unaitas Sacco (Sh116 million), Stima Sacco (Sh69 million), Credit Bank (Sh52 million), Tower Sacco (Sh30 million) and Ukulima Sacco (Sh12 million).

The KMRC funding covered 574 loans priced at an average interest of 9.5 percent, putting the average mortgage size at Sh2.34 million.

KCB was amongst the first lenders to apply for funds from KMRC after it sought Sh2.1 billion early last year.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#623 Posted : Wednesday, July 06, 2022 2:25:27 PM
Rank: Member


Joined: 6/2/2010
Posts: 893
For KCB, 1.8B is chump change.
Total deposits is 837B - so them taking these monies is I suppose more for providing access to their customers who might want to tap into KMRC funding.
Very little addition to their bottom line - if they were to onward lend it at say 10%, the amount of profit is still lower than the bonus they pay the CEO.
Ericsson
#624 Posted : Sunday, July 10, 2022 8:02:35 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
My 2 cents wrote:
For KCB, 1.8B is chump change.
Total deposits is 837B - so them taking these monies is I suppose more for providing access to their customers who might want to tap into KMRC funding.
Very little addition to their bottom line - if they were to onward lend it at say 10%, the amount of profit is still lower than the bonus they pay the CEO.

Interest on KMRC loan to borrowers is capped at 9.5%
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#625 Posted : Thursday, July 14, 2022 7:15:43 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#626 Posted : Wednesday, August 03, 2022 8:44:10 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,154
Location: nairobi
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC

COOP 5,500 ABP12.6; HF 261,000 ABP 3.49; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
My 2 cents
#627 Posted : Wednesday, August 03, 2022 4:31:39 PM
Rank: Member


Joined: 6/2/2010
Posts: 893
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.
watesh
#628 Posted : Wednesday, August 03, 2022 10:44:23 PM
Rank: Veteran


Joined: 8/10/2014
Posts: 923
Location: Kenya
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.
sparkly
#629 Posted : Thursday, August 04, 2022 1:00:14 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,069
Location: Enk are Nyirobi
watesh wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.


Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value
Life is short. Live passionately.
sparkly
#630 Posted : Thursday, August 04, 2022 1:03:30 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,069
Location: Enk are Nyirobi
watesh wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.


Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value.
Life is short. Live passionately.
My 2 cents
#631 Posted : Thursday, August 04, 2022 1:12:56 PM
Rank: Member


Joined: 6/2/2010
Posts: 893
sparkly wrote:
watesh wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.


Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value.


My concern seems to have a basis. KCB is making these acquisitions at exorbitant pricing. Who benefits?
Meanwhile ABSA has also been coming up with projects to spend billions.
In 2019/2020 - More than 1.5B for Branding!
Latest in pipeline - 2B for new sofware Shame on you
heri
#632 Posted : Thursday, August 04, 2022 1:21:34 PM
Rank: Member


Joined: 9/14/2011
Posts: 802
Location: nairobi
My 2 cents wrote:
sparkly wrote:
watesh wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.


Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value.


My concern seems to have a basis. KCB is making these acquisitions at exorbitant pricing. Who benefits?
Meanwhile ABSA has also been coming up with projects to spend billions.
In 2019/2020 - More than 1.5B for Branding!
Latest in pipeline - 2B for new sofware Shame on you
3.5B procurement deals in quick succession.
Ericsson
#633 Posted : Thursday, August 04, 2022 6:07:22 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


And TMB becomes the second largest subsidiary in the KCB Group family
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#634 Posted : Thursday, August 04, 2022 6:15:39 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


It's a good move,time will reveal.
The elections overhang is what is keeping share prices depressed.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#635 Posted : Friday, August 05, 2022 10:10:56 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#636 Posted : Friday, August 05, 2022 5:44:35 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,154
Location: nairobi
Ericsson wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now

Possibly touching KES 50 is the new reality

COOP 5,500 ABP12.6; HF 261,000 ABP 3.49; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
Ericsson
#637 Posted : Monday, August 08, 2022 5:40:35 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
obiero wrote:
Ericsson wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now

Possibly touching KES 50 is the new reality


Let's see if it will breakthrough the ksh.43 resistance level and hit 45
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#638 Posted : Monday, August 08, 2022 6:28:54 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,154
Location: nairobi
Ericsson wrote:
obiero wrote:
Ericsson wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now

Possibly touching KES 50 is the new reality


Let's see if it will breakthrough the ksh.43 resistance level and hit 45

On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it

COOP 5,500 ABP12.6; HF 261,000 ABP 3.49; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
My 2 cents
#639 Posted : Monday, August 08, 2022 12:32:35 PM
Rank: Member


Joined: 6/2/2010
Posts: 893
obiero wrote:
Ericsson wrote:
obiero wrote:
Ericsson wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now

Possibly touching KES 50 is the new reality


Let's see if it will breakthrough the ksh.43 resistance level and hit 45

On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it


Especially if they pay an interim of 1.5
Am still holding out for that 50 cent that they withheld at full year whilst all other tier ones went back to pre-covid dividend levels.
Ericsson
#640 Posted : Monday, August 08, 2022 8:05:24 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,412
Location: NAIROBI
obiero wrote:
Ericsson wrote:
obiero wrote:
Ericsson wrote:
My 2 cents wrote:
obiero wrote:
Ericsson wrote:
DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC


I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move.


Share price dropping below ksh.40 is over for now

Possibly touching KES 50 is the new reality


Let's see if it will breakthrough the ksh.43 resistance level and hit 45

On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it


A high of 44 printed,it closed the day at lower end of 42
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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