Monthly Archives: August 2005

End of August Updates

Indian Bank to acquire Giro?
The State Bank of India (SBI), is poised to acquire Giro Bank, a mid-size Kenyan Bank. The deal has already received approval from the Reserve Bank of India and is expected to be completed by October 2005. SBI, which has a balance sheet size of $145 billion, has a market share of over 25 per cent in the Indian banking system, while Giro is about the 23rd largest bank in Kenya, with assets of 4.5 billion shilling ($60 million).

Update on stockbrokers
It appears some of the stockbrokers I wrote about earlier may be inactive, have not renewed their licences or the information provided by the NSE may be outdated. Here now is an updated list of stockbrokers from the Capital Markets Authority as at April 2005.

Stockbrokers: Address, Telephone
Sterling Securities Limited P.O. Box 45080–00100, Nairobi
Ashbhu Securities Limited P.O. Box 41684–00100, Nairobi 020210178
Crossfied Securities Limited P.O. Box 34137–00100,Nairobi 020246036
Discount Securities Limited P.O. Box 42489–00100, Nairobi 020219552
Faida Securities Limited P.O. Box 45236–00100, Nairobi 020243811
Francis Thuo and Partners Ltd P.O. Box 46524–00100, Nairobi 020228498
Ngenye Kariuki and Company Ltd P.O. Box 12185–00400, Nairobi 020220052
Nyaga Stockbrokers Ltd P.O. Box 41869–00100, Nairobi 020332783
Reliable Securities Ltd P.O. Box 50338–00200, Nairobi 020241350
Solid Investment Securities Ltd P.O. Box 43046–00200, Nairobi 020244272

Bank Profits
As at June 30 2005, all commercial banks in Kenya were profitable except;

Oriental (formerly Delphis) 36 million loss
Bank of Africa 10m
Paramount Universal 2m

A Nightmare


Yesterday I finished reading Michael Crichton’s “Jurassic Park” and immediately started reading its sequel “Lost World” which I found in the house. I didn’t get very far into it, before I went to bed. Naturally, I wondered what it would be like, and how much better than the movie it would be like. I went to sleep, and had this dream:

I was part of a group of dinosaur hunters, somewhere in the Sahara desert tracking down missing dinosaurs from the Park. We had found a fort in an oasis with a few trees, and had set up a camp and a trap there to catch the last surviving, reptile, a t-rex. The trap was actually a cow which was tied and grazing near some trees in which we hunters were hiding with a whole lot of guns.

At some point during the night, I felt I had to answer a long call of nature and I went to the pit latrine, which was next to cow. As I was doing my business I heard the cow scream, and looked up to see it dangling from the jaws of the t-rex which had appeared out of nowhere. I finished up, and ran into the trees yelling to my fellow hunters to start shooting, which they did. They came out of the trees guns blazing firing at the dinosaur.

T-Rex seemed confused by all the flashing lights, noise and smoke for a moment as it finished its meal. Then it calmly pulled out a six-shooter pistol and started firing back at us. We were all stunned at the intelligence of this reptile which was using our own human weapon against us. We figured it only knew how to use a small pistol. Next thing, he pulled out a shotgun, loaded it one-handed like Arnold in Terminator and continued firing at us. We then put down our arms and started running away, but all in the same direction. We had to keep our own guns away from the reptile, since he would gain another weapon for each one of us he caught.

At this point we were reduced to running about, only pausing to throw empty coca cola bottles, – (the Gods had gone crazy), at him as he continued firing his shotgun and roaring at us though the dust storm. Then I woke up.

Bank Rankings

For the half year, as at June 30th 2005:
all figures in millions of shillings

Profit Before Tax
Barclays 2.1 billion
Standard Chartered 1.6 billion
Kenya Commercial 859 million
Citibank Kenya 574 million
National Bank of Kenya 432
Commercial Bank of Africa 482 million
Cooperative 380 million
Equity 233 million
Investment & Mortgages 208 million
NIC 193 million

Return on Assets
Development Bank of Kenya 4.06%
Dubai 3.38%
Equity 2.61%
Charterhouse 2.48%
Standard Chartered 2.35%
Barclays 2.05%
Citibank 2.04%
Commercial Bank of Africa 2.03%

Customer Deposits
Barclays 83 billion
Standard Chartered 59 billion
Kenya Commercial 57 billion
Cooperative 41 billion
National Bank of Kenya 25 billion
Citibank 21 billion

Net Loans
Barclays 63 billion
Kenya Commercial 33 billion
Cooperative 30 billion
Standard Chartered 28 billion ,461
National Bank of Kenya 23 billion
NIC 12 billion
Citibank Kenya 12 billion
CFC 11 billion

Tier 1
Tier 1 are banks whose assets exceed 25 billion shillings ($333 million)
Assets (profit before tax)
Barclays 102,802 (2,103) i.e. 103 billlion in assets, 2.1 billion in six month profits
Kenya Commercial 70,898 (859)
Standard Chartered 68,829 (1,618)
Cooperative 50,982 (380)
National Bank of Kenya 31,701 (432)
Citibank Kenya 28,174 (574)

Tier 2
Tier 1 are banks whose assets range from 6 to 24.9 billion shillings ($80 – 333 million) Note that CBA has gone from being a mid tier 2 bank to almost tier 1 since its merger with First American Bank.

Assets (profit before tax)
Commercial Bank of Africa 23,742 (482)
NIC 19,023 (193)
CFC 17,616 (70)
Investment & Mortgages 15,995 (208)
Diamond Trust 13,429 (146)
Stanbic 12,525 (144)
Housing Finance 9,719 (29)
Equity 8,925 (233)
Baroda 8,840 (163)
Imperial 7,542 (128)
Bank of India 6,301 (65)
Prime 6,048 (49)

Tier 3
Banks whose assets are below 6 billion shillings ($80 million)
Fina 5,865 (36)
Guardian 4,597 (34)
Giro 4,568 (23)
Habib 4,450 (56)
ABC 4,236 (65)
Akiba 4,157 (48)
Middle East 4,156 (48)
Southern Credit 3,945 (25)
Victoria 3,827 (67)
Equatorial 3,070 (61)
Charterhouse 3,067 (76)
K-Rep 3,026 (43)
Consolidated 2,650 (14)
Development Bank of Kenya 2,412 (98)
Chase 2,270 (27)
Transnational 2,140 (35)
Oriental (formerly Delphis) 1,629 (-36)
Fidelity 1,568 (13)
Dubai 1,095 (37)
City Finance 564 (8)