http://www.mashada.com/blogs/ Mashada Blogs » Tags » investments Gregarius 0.6.1 en http://bankelele.blogspot.com/2009/10/olympia-capital-2009-agm.html Tue, 06 Oct 2009 02:27:00 -0400 http://bankelele.blogspot.com/2009/10/olympia-capital-2009-agm.html http://bankelele.blogspot.com/2009/02/equity-leads-kenyan-economy.html Fri, 13 Feb 2009 01:10:00 -0500 http://bankelele.blogspot.com/2009/02/equity-leads-kenyan-economy.html Equity Bank with the usual staggering financial results (PDF) for 2008 with 101% growth in profits and 103% in loans.

But a closer look at the numbers show some more subdued stats that may indicate an economic slowdown, and which may be confirmed when other banks (especially Barclays and KCB) release their year-end results in the next two months.

- Equity’s growth in assets is 45% from a year ago, but 6% in Q3 and 3% in Q4
- Equity’s deposits are 55% up from a year ago, but this breaks down to 23% in Q2, 10% in Q3 and 6% in Q4
- Equity’s’ loans are up 87%, but the 41% increase in Q2, was followed by 17% in Q3 and 2% in Q4
- Expansion costs - income up 98% from a year ago, but expenses have kept track – up 97% from a year ago (in 2007, the spread was 73% and 52% in 06/07)
- Factor in Safaricom IPO lending (interest and fees) estimated at– and Q2 income was 3x higher than in any of the other two quarters
- Cross-checking against the 2007 election and disruption in economic activity, in 4Q of 2007, Equity had growth of 18% in deposits and 33% in loans with 54% in profits in same quarter, with in 1Q of 2008, had 8% deposit and 11% in loans, rates which outpace 4Q of 2008

Shareholders will be happy with the Kshs. 3/= dividend, but the 1 for 10 share split, will add a huge float of shares to an overflowing NSE pool.

Bank opportunities
most from the daily papers this week
- African Development Bank is currently accepting applications for its Young Professionals Program . Apply online by 20/2
- Barclays seeking debt recovery agents – auctioneers, re-possessors, valuers and investigators. D/L is 28/2
- Commercial Bank of Africa: senior manager finance. Apply through KPMG by 25/2
- Family Bank Bancassurance Manager. D/L for online applicatiosn is 6/3
- IFC Investment officer (private equity & investment funds division) Africa, based in Nairobi. D/L is 27/2 ]]> http://bankelele.blogspot.com/2008/10/scangroup-sellout-part-ii.html Fri, 03 Oct 2008 11:50:00 -0400 http://bankelele.blogspot.com/2008/10/scangroup-sellout-part-ii.html http://bankelele.blogspot.com/2008/09/crown-restored.html Mon, 08 Sep 2008 05:25:00 -0400 http://bankelele.blogspot.com/2008/09/crown-restored.html http://bankelele.blogspot.com/2008/09/stolen-crown.html Thu, 04 Sep 2008 07:37:00 -0400 http://bankelele.blogspot.com/2008/09/stolen-crown.html http://bankelele.blogspot.com/2008/08/olympia-turnaround.html Mon, 18 Aug 2008 03:01:00 -0400 http://bankelele.blogspot.com/2008/08/olympia-turnaround.html http://bankelele.blogspot.com/2008/08/old-mutual-toboa.html Fri, 01 Aug 2008 00:10:00 -0400 http://bankelele.blogspot.com/2008/08/old-mutual-toboa.html Old Mutual Loosens Up Part II (Corrected, thanks Joyce)

A few years ago Old Mutual unit trusts in Kenya had a minimum entry amount of Kshs. 500,000 ($7,462). Last September, they dropped this to Kshs. 200,000 and now they have gone even lower.

Old Mutual Kenya has launched the Toboa Investment Plan which costs just Kshs. 7,500 ($112) per month to start other funds in the family are money market and balanced fund. Speakers at the launch included Deputy Prime Minister Musalia Mudavadi, NSE CEO Chris Mwebesa, CMA CEO Stella Kilonzo, the new boss of Old Mutual Kenya, and Laura Chakava head of Old Mutual Assets in Kenya – who all spoke of the need for affordable collective investment schemes in the country

- Mudavadi said that while local government act mandated that the town councils should have savings and capital funds to cater for unexpected expenses, these are largely ignored – with only 40 of the 175 councils able to comfortably pay their salaries. Also high savings are a part of Vision 2030, but Kenyan savings rates which were already below the average of other African countries, were dropping
- Mwebesa lamented the 1.5 to 1.8 million CDS account holders in the country; the number is un-serviceable (mailing budget for statements of the CDSC costs almost $1m per year – and this compared unfavorably to account holder level in South Africa (100,000) and Brazil (500,000). He said more people should access the market through collective investment schemes such as unit trusts but whose entry levels had been high (elitist) until now
- Kilonzo and Mwebesa both alluded to a recent survey on investors (June 2008) that showed the level of investor education in teh country was not good. Most people relied on the media for share investment information, and were ignorant of the risks of investing in shares.
- Chakava said Kenyans have appetite for investment as shown in the IPO queues and pyramid schemes. OM now gives them an affordable, professionally managed vehicle for investment beyond the unpredictable buy low, sell high mantra that most investors try and follow.

Toboa will invest in fixed income, equities and off shore. OM, which pioneered unit trusts in Kenya, manages about Kshs. 10 billion, but CIS only control about 2% of the NSE. Other OM trusts have an initial fee of about 3 – 7% and annual fee of 2%, the Toboa will probably be slightly higher than this and will use Posta (post office) outlets to collect payments.

Edit: Interesting discussion on Old Mutual investment plans from the Stockskenya forum ]]> http://bankelele.blogspot.com/2008/05/wanted.html Tue, 13 May 2008 05:38:00 -0400 http://bankelele.blogspot.com/2008/05/wanted.html http://bankelele.blogspot.com/2008/05/new-media-stocks-at-nse.html Fri, 02 May 2008 01:37:00 -0400 http://bankelele.blogspot.com/2008/05/new-media-stocks-at-nse.html http://bankelele.blogspot.com/2007/11/diamond-trust-rights-reloaded.html Wed, 07 Nov 2007 01:11:00 -0500 http://bankelele.blogspot.com/2007/11/diamond-trust-rights-reloaded.html raise capital and Diamond Trust are back to ask their shareholders to chip in. In November 2006 they raised 735 million, and this time they are set to raise 1.6 billion ($24 million)

What has changed
Then ; Now
Nov ’06 ; Nov ‘07
New shares 15.5 million ; 23.3 million
Price 50/= ; 70/= (a 20% discount each time)
Ratio 1:8 ; 1:6 (1 new share for 6 owned)
Result: oversubscribed; ? (Likely to be the same)

cost of the offer
Budget:2006 offer - 41.6 million ; 2007 offer - 54.7 million

What costs more: :
Advertising - up 250% (2.5m)
CMA approval – up 104% (4m)
Placing commission – up 100% (24.5m)
Printing & postage - up 29% (9m)
Registrar & data - up 29% (3m)
Legal fees – up 16% (4m)

Costs less
NSE listing fees – down 436% (0.09m)
Reporting accountant fees – down 200% (2m)
Sponsoring stockbroker fee – down 50% (1.74m)

Unchanged
NSE listing fees (0.5m), PR activities (0.5m)

calendar
record date 16/10, rights start trading 2/11, last day trade rights 12/11, last date to pay for rights 27/11, new share trade 11/12, new share certificates 18/12. ]]>