a guest post by Kainvestor
Barclays Bank AGM:
Besides the ordinary issues of election of directors, approval of financial statements, dividends and director remuneration, there was also special business items on the agenda of amendment of articles to allow for electronic statements and transfer of dividends via mobile money.
As expected, shareholders approved everything and further approved selling the Bank’s custody business, though some thought the bank was selling (itself) out to Stanchart.
– Why a very big amount in non-performing loans and why are they not up-dated consistently every year? Response was BBK has loaned out over Kshs 100 billion and only about 2b have a paying problem, and most of them are secured so can still recover money by sale of collateral. They collected over kshs 200m from impaired loan accounts in 2008 and over Kshs 400m in 2009.
– What is the bank planning to do with loans secured by fake titles for grabbed land that the government is likely to repossess when the new constitution is passed? The bank doesn’t have such loans and if by bad lack such unfortunate events take place, they believe they will have recourse in the courts.
– Why is annual report font too small to read?
Future annual reports will have fonts that are legible to read
– Since the bank is making a lot of profit with ever growing retained earnings and they are selling the custody business, why can’t they give out more dividends and a share bonus?
Selling of the custody business will be concluded in October this year so money has not been paid to the bank yet. Even so the amount will be used for expansion of the bank. The bank has also been increasing the amount of dividend paid out considerably, by 25% this year from Ksh.2.0 in 2008 to Ksh.2.50 in 2009, and this will be the trend as the bank makes more profits. A bonus might be given next year if the business continues performing well.
– Why are Q1 results late and when are they going to be released? The bank is within the required reporting period and the results will be published Monday next week
humorous moment: Mama Helena, a 94 year old lady from Muranga, said (in kikuyu, translated by Director Judy Nyaga) that she’s too old to wait for the bonus next year and wanted the directors to give her bonus this year.This was supported by several old shareholders.
Goodies: a BBK labeled bag and packed lunch
Family Bank AGM:
… Got in late when they were discussing the only special business agenda. The bank was seeking shareholders approval to offer and allotment of unissued shares. This was approved, though one share holder asked if it meant that the bank would be going public on the NSE to which one director declined saying if that was the case shareholders will be informed first…. later got feeling that some shareholders are not for the idea to have the bank list on the NSE as they feel that they will loose out to new investors.
– Ng’ang’a Muchai retired after serving the bank for 26 years as a director.
– Goodies: a bottle of mineral water, cup of coffee/tea and snacks afterwards.
thanks Kainvestor, other guest posts are also welcomed