UPDATE 2-Kenya's KCB Group H1 profit rises, delays rights issue

Geza Ulole · Aug 4, 2016

UPDATE 2-Kenya's KCB Group H1 profit rises, delays rights issue
Thu Aug 4, 2016 7:51am GMT

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* KCB gets boost from expanding domestic economy

* South Sudan business affected by renewed violence (Adds details on South Sudan)

By George Obulutsa

NAIROBI, Aug 4 (Reuters) - A strong performance in its home market helped KCB Group, Kenya's largest bank by assets, to report a 14 percent rise in first half pretax profit, offsetting a weaker return from South Sudan.

KCB Group also said a rights issue planned for later this year to raise 10 billion Kenyan shillings ($99 million) had been rescheduled, citing a strong projected cashflow for the full year. It did not give a new timeframe.

Pretax profit rose to 15.1 billion shillings in the first six months of the year, with Kenya contributing 14 billion shillings.

"The Kenya business continues to show strong momentum and so are new business lines like Bancassurance, KCB Capital and Sahl Banking," Joshua Oigara, KCB's chief executive officer, said in a statement. Sahl Banking is the company's Islamic banking arm.

The bank is benefiting from economic growth which rose to 5.9 percent in Kenya in the first quarter of 2016.

By contrast, South Sudan's economy has been hit by a two-year civil war that started in 2013.

A peace deal signed last August to end the war is in jeopardy, after fighting broke out in July between soldiers loyal to long time rivals President Salva Kiir and Riek Machar, who was replaced as vice president after he left the capital.

"South Sudan remains challenging arising from the uncertainty following fresh fighting and tension between the two main political factions," Ngeny Biwott, KCB's chairman, said in a statement.

The bank said South Sudan's contribution to profit had fallen to 4 percent from 6.9 percent in first half 2015.

The bank, which also operates in Rwanda, Burundi, Tanzania, Uganda, said its total assets fell 1 percent to 560 billion shillings, while customer deposits fell 2 percent to 433 billion shillings, both attributed to the devaluation of the South Sudan pound.

It said net interest income rose 16 percent to 22.53 billion shillings in the first half, while net loans and advances were up 8 percent to 347 billion shillings.

KCB said its earnings per share was up to 6.94 shillings from 6.11 shillings. Its shares were up 1.6 percent to trade at 32.00 shillings on the Nairobi Securities Exchange at 0749 GMT. ($1 = 101.3000 Kenyan shillings) (Reporting by George Obulutsa; Editing by Keith Weir)

UPDATE 2-Kenya's KCB Group H1 profit rises, delays rights issue | News by Country | Reuters

MY TAKE
Damn over 10 years in the Tanzania, Uganda, South Sudan and Rwanda n still their profit from these markets is less than Kshs 1.1 bln and yet fools r making noises in here! Wonder how much did Tanzania contribute to that Kshs 1.1 bln as i am pretty sure south Sudan contributes the lionshare!?

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Livale · Aug 4, 2016

Throwing stones from a glasshouse now ain't you Geza

KCB's asset worth outside Kenya is $2.02 billion, more or less the same size as Tanzania's largest bank, CRDB at $2.15 billion.

KCB's 2015 AFTER TAX profit from outside Kenya 12.8% of her 19.6 billion profit which is ksh 2.5 billion.
KCB full year net profit jumps 16pc to Sh19.6bn

CRDB's 2015 PRE-TAX profit was Tsh 128.9 billion or ksh 5.8 billion CRDB Bank PLC - CRDB Bank PLC Shareholders Approve TZS 17 Dividend Following a 35% Jump in Pre-tax Profit in FY 2015. Their aftertax profit is a mystery sijui wanaficha tax evasion ama nini

1 Africa · Aug 4, 2016

Livale said:
Throwing stones from a glasshouse now ain't you Geza

KCB's asset worth outside Kenya is $2.02 billion, more or less the same size as Tanzania's largest bank, CRDB at $2.15 billion.

KCB's 2015 AFTER TAX profit from outside Kenya 12.8% of her 19.6 billion profit which is ksh 2.5 billion.
KCB full year net profit jumps 16pc to Sh19.6bn

CRDB's 2015 PRE-TAX profit was Tsh 128.9 billion or ksh 5.8 billion CRDB Bank PLC - CRDB Bank PLC Shareholders Approve TZS 17 Dividend Following a 35% Jump in Pre-tax Profit in FY 2015. Their aftertax profit is a mystery sijui wanaficha tax evasion ama nini

Haha...burn...kwanza your second paragraph.

Depay · Aug 4, 2016

KCB's asset worth outside Kenya is $2.02 billion,
more or less the same size as Tanzania's largest
bank, CRDB at $2.15 billion.....Tihihihi

Geza Ulole · Aug 4, 2016

Livale evidence of KCB outside assets being at $2.1 bln? And at what exchange rate did u calculate CRDB bank? As far as i know 1ksh=19Tsh!

Geza Ulole · Aug 4, 2016

Livale
UPDATE 3-Kenya's KCB warns on bad debts, puts off cash call
Thu Aug 4, 2016 11:48am GMT

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* South Sudan business affected by renewed violence

* Bad debts jump 36 pct in six months period

* Shares down 28 percent this year (Adds non-performing loans, share price performance)

By George Obulutsa and Duncan Miriri

NAIROBI, Aug 4 (Reuters) - KCB Group, Kenya's largest bank by assets, warned on Thursday of rising bad debts in the industry and postponed plans to raise cash through a rights issue.

The group, which also operates in Rwanda, Burundi, Tanzania, Uganda and South Sudan, also reported pretax profit rose 14 percent in the first half of this year to 15.1 billion shillings ($149.09 million), as earning from Kenya surged 19 percent.

Its non-performing loans, however, jumped by over a third, sending the ratio of bad debts to 8.9 percent from 7.3 percent a year earlier.

The lender blamed three major loan accounts in the construction and government supplies services sectors for the jump, pledging to reverse the trend through recoveries.

"Generally, across the industry, the level of NPLs remain a concern," KCB Chief Executive Joshua Oigara said in a statement.

KCB's shares are down 28 percent this year at 31.75 shillings, underperforming the benchmark NSE-20 share index, which is down 13.88 percent this year.

KCB put off a rights issue planned for later this year to raise 10 billion shillings, citing a strong projected cash flow for the full year. It did not give a new time frame.

Daniel Kuyoh, a senior investment analyst at Alpha Africa Asset Managers, said the level of bad debts at KCB were generally in line with expectations, after the central bank tightened rules around classification of bad loans for commercial banks.

"The central bank is very heavy on enforcing the guidelines," Kuyoh said, adding lack of revenue growth among some major Kenyan firms, which took out bank loans, could also be driving bad loans.

Patrick Njoroge, the governor of the central bank, said in April that bad debts for Kenyan banks stood at 8 percent, well above the 5.7 percent level in April 2015.

Njoroge, who took over in June last year, has been driving efforts to tighten bank supervision, after three medium- and small-sized lenders collapsed in the nine months to April, sparking concerns about the stability of the sector.

KCB said net interest income rose 16 percent to 22.53 billion shillings in the first half, while net loans and advances went up 8 percent.

Its earnings per share rose to 6.94 shillings from 6.11 shillings. Its shares were up 1.6 percent to trade at 32.00 shillings on the Nairobi Securities Exchange at 0749 GMT, before giving up some of the gains to trade at 31.75 shillings later. ($1 = 101.3000 Kenyan shillings) (Editing by Susan Thomas)

UPDATE 3-Kenya's KCB warns on bad debts, puts off cash call | News by Country | Reuters

Livale · Aug 4, 2016

Geza Ulole said:
Livale evidence of KCB outside assets being at $2.1 bln? And at what exchange rate did u calculate CRDB bank? As far as i know 1ksh=19Tsh!

You clearly leave under a rock, the 1ksh= 19Tsh rate passed a long time ago
Convert Kenyan Shillings (KES) and Tanzanian Shillings (TZS): Currency Exchange Rate Conversion Calculator
XE: Convert KES/TZS. Kenya Shilling to Tanzania Shilling
Convert Tanzanian Shilling to Kenyan Shillings | TZS to KES Currency Converter

Then, KCB's asset value is $5.7billion. From the link below, it's Kenyan assets are worth $3.68 billion. Do the math.
KCB Bank Kenya Limited - Wikipedia, the free encyclopedia

Livale · Aug 4, 2016

Geza Ulole said:
Livale
UPDATE 3-Kenya's KCB warns on bad debts, puts off cash call
Thu Aug 4, 2016 11:48am GMT

Print | Single Page
[-] Text [+]
* South Sudan business affected by renewed violence

* Bad debts jump 36 pct in six months period

* Shares down 28 percent this year (Adds non-performing loans, share price performance)

By George Obulutsa and Duncan Miriri

NAIROBI, Aug 4 (Reuters) - KCB Group, Kenya's largest bank by assets, warned on Thursday of rising bad debts in the industry and postponed plans to raise cash through a rights issue.

The group, which also operates in Rwanda, Burundi, Tanzania, Uganda and South Sudan, also reported pretax profit rose 14 percent in the first half of this year to 15.1 billion shillings ($149.09 million), as earning from Kenya surged 19 percent.

Its non-performing loans, however, jumped by over a third, sending the ratio of bad debts to 8.9 percent from 7.3 percent a year earlier.

The lender blamed three major loan accounts in the construction and government supplies services sectors for the jump, pledging to reverse the trend through recoveries.

"Generally, across the industry, the level of NPLs remain a concern," KCB Chief Executive Joshua Oigara said in a statement.

KCB's shares are down 28 percent this year at 31.75 shillings, underperforming the benchmark NSE-20 share index, which is down 13.88 percent this year.

KCB put off a rights issue planned for later this year to raise 10 billion shillings, citing a strong projected cash flow for the full year. It did not give a new time frame.

Daniel Kuyoh, a senior investment analyst at Alpha Africa Asset Managers, said the level of bad debts at KCB were generally in line with expectations, after the central bank tightened rules around classification of bad loans for commercial banks.

"The central bank is very heavy on enforcing the guidelines," Kuyoh said, adding lack of revenue growth among some major Kenyan firms, which took out bank loans, could also be driving bad loans.

Patrick Njoroge, the governor of the central bank, said in April that bad debts for Kenyan banks stood at 8 percent, well above the 5.7 percent level in April 2015.

Njoroge, who took over in June last year, has been driving efforts to tighten bank supervision, after three medium- and small-sized lenders collapsed in the nine months to April, sparking concerns about the stability of the sector.

KCB said net interest income rose 16 percent to 22.53 billion shillings in the first half, while net loans and advances went up 8 percent.

Its earnings per share rose to 6.94 shillings from 6.11 shillings. Its shares were up 1.6 percent to trade at 32.00 shillings on the Nairobi Securities Exchange at 0749 GMT, before giving up some of the gains to trade at 31.75 shillings later. ($1 = 101.3000 Kenyan shillings) (Editing by Susan Thomas)

UPDATE 3-Kenya's KCB warns on bad debts, puts off cash call | News by Country | Reuters

And yet profits for the first 6 months still rose up by 14% to ksh15.1 billion, 3 times greater than CRDB's entire 2015 record profit of ksh5.8 billion. Worry about your local banking industry, mbwa ambwekea simba ilhali chui humuona kitoweo

bukoba boy · Aug 5, 2016

Livale said:
Throwing stones from a glasshouse now ain't you Geza

KCB's asset worth outside Kenya is $2.02 billion, more or less the same size as Tanzania's largest bank, CRDB at $2.15 billion.

KCB's 2015 AFTER TAX profit from outside Kenya 12.8% of her 19.6 billion profit which is ksh 2.5 billion.
KCB full year net profit jumps 16pc to Sh19.6bn

CRDB's 2015 PRE-TAX profit was Tsh 128.9 billion or ksh 5.8 billion CRDB Bank PLC - CRDB Bank PLC Shareholders Approve TZS 17 Dividend Following a 35% Jump in Pre-tax Profit in FY 2015. Their aftertax profit is a mystery sijui wanaficha tax evasion ama nini

You cant have $2.02b assets generating just 1bn Kenyan money ($20.2m).Illogical.

Livale · Aug 5, 2016

bukoba boy said:
You cant have $2.02b assets generating just 1bn Kenyan money ($20.2m).Illogical.

1.1 billion for the FIRST 6 MONTHS. Read the full article before making outlandish comments. And keep in mind there are key operations in 2 unstable States there! Then compare that with your largest bank's AFTER TAX profit of last year ndio uongelee logic

bukoba boy · Aug 5, 2016

Livale said:
1.1 billion for the FIRST 6 MONTHS. Read the full article before making outlandish comments. And keep in mind there are key operations in 2 unstable States there! Then compare that with your largest bank's AFTER TAX profit of last year ndio uongelee logic

Illogical as well.

Livale · Aug 5, 2016

bukoba boy said:
Illogical as well.

I'll assume that statement was aimed at my reference to you checking CRDB's after tax profits and will for that reason tell you "in big business, profits don't come in figures like 5-20% of assets so read some more about the corporate world and be kind to your local fledgling bank"

UPDATE 2-Kenya's KCB Group H1 profit rises, delays rights issue

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