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DTB: Diamond out of sight
Extraterrestrial
#1 Posted : Thursday, October 14, 2021 5:05:08 PM
Rank: Member


Joined: 11/17/2018
Posts: 163
Location: Mars
BREAKING

DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.

Today, we were invited to an investors' conference.

Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".

He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.

They were also gathering a warchest for acquisitions before Covid happened.

Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).

He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.

Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.

He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.

He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.

The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".

The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.

I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen.
My 2 cents
#2 Posted : Thursday, October 14, 2021 6:53:34 PM
Rank: Member


Joined: 6/2/2010
Posts: 693
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
Ericsson
#3 Posted : Thursday, October 14, 2021 11:29:33 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
Extraterrestrial wrote:
BREAKING

DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.

Today, we were invited to an investors' conference.

Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".

He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.

They were also gathering a warchest for acquisitions before Covid happened.

Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).

He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.

Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.

He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.

He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.

The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".

The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.

I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen.



The investors conference was an opportunity for the management to manage the shareholders.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#4 Posted : Thursday, October 14, 2021 11:47:04 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
My 2 cents wrote:
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
TRUTH

EPS 24/-
DPS 2.60 and zero in FY2020 so less than 12% 2016-2019

Dividend Payout Ratio (2016-2019)
Please correct any errors

ABSA 50-80% even with the changeover
Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC
SCBK 50-80%. During COVID they reduced it by 50% but still quite high
I&M paid every year at 25% while looking to buy Orient
KCB
Coop
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#5 Posted : Thursday, October 14, 2021 11:54:35 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
Ericsson wrote:
Extraterrestrial wrote:
BREAKING

DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.

Today, we were invited to an investors' conference.

Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".

He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.

They were also gathering a warchest for acquisitions before Covid happened.

Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).

He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.

Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.

He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.

He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.

The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".

The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.

I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen.



The investors conference was an opportunity for the management to manage the shareholders.
Did you attend?
I believe you are right. The question about dividends and buybacks doesn't seem to have been answered. PR tu. They don't have shares like King James in the bank.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#6 Posted : Friday, October 15, 2021 8:37:07 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
Extraterrestrial wrote:
BREAKING

DTB's Finance Director expects the Group's ROE to go back to previous levels of 13-14, even 15%.

Today, we were invited to an investors' conference.

Chairman Linus Gitahi acknowledged that shareholders feel that "the store is overflowing".

He committed to the fact that the goal is to keep the investors happy, not only in 2022, 2023, but also 2030.

They were also gathering a warchest for acquisitions before Covid happened.

Finance Director Alkarim Jiwa responded to worries about the loan book being underprovisioned by retorting that "its just not in our DNA" & reminded the roundtable that the Group has actually been accused of being TOO PRUDENT (with provisions).

He conceded that while NPLs have climbed from single digits to double digits, they see the impairments as short term.

Chairman Linus Gitahi committed to take shareholders' concerns (over capital excesses & low payouts) back to a Board meeting.

He encouraged shareholders that they may soon come back with propositions of acquisitions &/or increasing the returns.

He reiterated that they will go back & look at the fact that shareholders are saying that the Group is stingy.

The members of the investor team physically present were treated to lunch & a comprehensive tour of everything from the corporate offices to the data centres, which businessman & blogger Steve Biko called "very eye-opening".

The brilliant CEO & MD Nasim Devji closed the meeting, saying that the interaction has been excellent.

I want to greatly thank Chairman Linus Gitahi, Finance Director Alkarim Jiwa, CEO/MD Nasim Devji, Farouk Khimji & everyone in the organisation who made it happen.



The investors conference was an opportunity for the management to manage the shareholders.
Did you attend?
I believe you are right. The question about dividends and buybacks doesn't seem to have been answered. PR tu. They don't have shares like King James in the bank.



I didn't attend.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#7 Posted : Friday, October 15, 2021 7:09:06 PM
Rank: Member


Joined: 6/2/2010
Posts: 693
VituVingiSana wrote:
My 2 cents wrote:
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
TRUTH

EPS 24/-
DPS 2.60 and zero in FY2020 so less than 12% 2016-2019

Dividend Payout Ratio (2016-2019)
Please correct any errors

ABSA 50-80% even with the changeover
Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC
SCBK 50-80%. During COVID they reduced it by 50% but still quite high
I&M paid every year at 25% while looking to buy Orient
KCB
Coop


2016

Group EPS 26.94
DPS 2.6
VituVingiSana
#8 Posted : Friday, October 15, 2021 10:40:07 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
My 2 cents wrote:
VituVingiSana wrote:
My 2 cents wrote:
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
TRUTH

EPS 24/-
DPS 2.60 and zero in FY2020 so less than 12% 2016-2019

Dividend Payout Ratio (2016-2019)
Please correct any errors

ABSA 50-80% even with the changeover
Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC
SCBK 50-80%. During COVID they reduced it by 50% but still quite high
I&M paid every year at 25% while looking to buy Orient
KCB
Coop


2016

Group EPS 26.94
DPS 2.6

2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same.

Imagine 2.60 on 165/- as a dividend Shame on you Sad and share price at 60/-.
*And 165 was the Rights Price and not the prevailing share price of 240 at the time!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#9 Posted : Saturday, October 16, 2021 3:16:59 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
VituVingiSana wrote:
My 2 cents wrote:
VituVingiSana wrote:
My 2 cents wrote:
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
TRUTH

EPS 24/-
DPS 2.60 and zero in FY2020 so less than 12% 2016-2019

Dividend Payout Ratio (2016-2019)
Please correct any errors

ABSA 50-80% even with the changeover
Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC
SCBK 50-80%. During COVID they reduced it by 50% but still quite high
I&M paid every year at 25% while looking to buy Orient
KCB
Coop


2016

Group EPS 26.94
DPS 2.6

2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same.

Imagine 2.60 on 165/- as a dividend Shame on you Sad and share price at 60/-.
*And 165 was the Rights Price and not the prevailing share price of 240 at the time!



Waah that is a terrible return to an investor.
DTB is competing with insurance companies in terms of dividend payout.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#10 Posted : Saturday, October 16, 2021 8:12:35 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
My 2 cents wrote:
VituVingiSana wrote:
My 2 cents wrote:
Am an investor, I did not receive this invitation. How was it sent? I have very many questions for management. I have always felt like DTB is not that interested in creating shareholder value - am I wrong? Their focus is to aggregate as much deposits from their customers, give very favourable interest rates to customers and also provide loans to preferred customers - some who get jumbo loans that subsequently go bust. Their divident payout ratio is sometimes as low as 10%!!!
TRUTH

EPS 24/-
DPS 2.60 and zero in FY2020 so less than 12% 2016-2019

Dividend Payout Ratio (2016-2019)
Please correct any errors

ABSA 50-80% even with the changeover
Equity Varies but 30% (Zero FY 19 and FY20 but they bought BCDC
SCBK 50-80%. During COVID they reduced it by 50% but still quite high
I&M paid every year at 25% while looking to buy Orient
KCB
Coop


2016

Group EPS 26.94
DPS 2.6

2016 nimesamehe since they wanted to retain capital. There was a Rights Issue at 165. Fast Forward to 2019, skip 2020 and move to 1H2021 the EPS has not grown much unlike its peers eg I&M and the dividend has remained the same.

Imagine 2.60 on 165/- as a dividend Shame on you Sad and share price at 60/-.
*And 165 was the Rights Price and not the prevailing share price of 240 at the time!



Waah that is a terrible return to an investor.
DTB is competing with insurance companies in terms of dividend payout.
Jubilee is doing better than DTB in paying dividends.
A dividend of 2.60 is 1% of their stated NAV. d'oh!
And they aren't expanding like Equity either.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
My 2 cents
#11 Posted : Saturday, October 16, 2021 8:19:42 AM
Rank: Member


Joined: 6/2/2010
Posts: 693
It is basically run like a sacco in the sense that the biggest stakeholders are depositors - management strives to pay them as a high an interest as possible. Everybody else is secondary. Shareholders, employees etc.
Ericsson
#12 Posted : Saturday, October 16, 2021 12:24:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
My 2 cents wrote:
It is basically run like a sacco in the sense that the biggest stakeholders are depositors - management strives to pay them as a high an interest as possible. Everybody else is secondary. Shareholders, employees etc.


And giving out loans to their buddies.
How were they caught in Nakumatt then Tuskys.
KCB used to be the bankers of Tuskys then bolted out when they saw things turning for the worse,how DTB got involved nobody knows.
They then involved themselves in Brittania which went under with their money.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#13 Posted : Saturday, October 16, 2021 5:29:33 PM
Rank: Member


Joined: 6/2/2010
Posts: 693
Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this.
kmucheke
#14 Posted : Monday, October 18, 2021 3:52:51 PM
Rank: Member


Joined: 3/16/2019
Posts: 279
My 2 cents wrote:
Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this.


The Court of Appeal set aside the High court ruling and ordered a retrial at the high court. The case had caused ripples in the Ug banking sector. LINK

Equity had a similar case in Ug where Simbamanyo was disputing the legality of the loan. Equity went ahead and auctioned his property after expiry of the repayment deadline. LINK

Seems DTB is weak
VituVingiSana
#15 Posted : Tuesday, October 19, 2021 8:35:22 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
kmucheke wrote:
My 2 cents wrote:
Then there was the 1.2 billion to the Ugandan who took them to Ugandan court to claim the loan was illegal because it was made by the Kenyan branch. I wonder where they are with this.


The Court of Appeal set aside the High court ruling and ordered a retrial at the high court. The case had caused ripples in the Ug banking sector. LINK

Equity had a similar case in Ug where Simbamanyo was disputing the legality of the loan. Equity went ahead and auctioned his property after expiry of the repayment deadline. LINK

Seems DTB is weak
That HAM guy is a conman. You cannot auction someone's property without court orders and it seems the crook has been greasing judges and others. DTB did debit his account so mitigated some of the losses.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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