Category Archives: Paramount Universal

Bank Review ‘07: Part 1

the bottom 5

The low end of the banking sector showed little growth in loans or deposits – bank sizes are stagnant.

40. City Finance: (last year 42) Estimated assets of 650 million shillings ($9.28 million) and loss of 20 million shillings in 2007. Kenya’s smallest bank was taken over by the Baraka Fund late in the year, and is expected to be recapitalized and turned around from 2008.

39. (41) Dubai: Estimated 1,480 million assets, profit of 10m shillings.
Growth of about 3% this year, but the bank will have achieve a smaller profit than last year. Its niche branch in Eastleigh and foreign remittance product has found increased competition.

38. (40) Oriental: Estimated 1,732m in assets and profit of 200 million. The perennial loss making Oriental bank (formerly BCCI and Delphis) was recapitalized and is on track for a profit this year following a payment from the Governments’ financial restructuring of Miwani Sugar company which owed the bank a significant debt.

37. (39) Paramount Universal : Estimated 2,258 billion and profit of 45 million. Growth in assets, deposits, and loans flat this year but at least is profitable.

36. (37) Transnational: Estimated 3.03 billion ($43 million) in assets, and 90 million ($1.3m) in profit for 2007. A quiet year for the bank which introduced a Fanikisha product for customers to save money and buy IPO shares on the NSE

Bank story of the week

Which way Equity?: It’s rare to see two sides of a story from the same editorial team – but it has happened on the controversial shielding of Equity Bank’s new shareholders with the Nation newspaper editorial defending the exemption granted by the Finance Minister, after the influential Business Daily editorial (sister newspaper in the Nation Media Group) had strongly opposed the same.

Banking, Corruption, Jobs

IMF on Kenya
The International Monetary Fund (IMF) will only support drought operations in Kenya until their next review of country operations at the end of April.

Report corruption online
At the new Kenya Anti Corruption Commission KACC website. The launch was graced by Parliament Speaker, Francis Ole Kaparo, whose office is not so not so enthusiastic about websites.

Barclays improves
Barclays has joined the growing list of progressive banks by installing an ATM that accepts cash & cheque deposits at its Queensway House Branch. Many more are sure to follow.

More 2005 banks
I&M (No. 10). Loans and customer deposits increased by over 3 billion to 11b and 14.8b respectively. The Bank also increased its share capital by 500m during year.

Housing Finance (No. 14) reduced government securities from 1,346m to 796m while loans were flat at 6.5b. Profit before tax was also the same at around 100m.

Baroda (No. 15) loans increased from 2.7b to 3.4b while customer deposits also increased from 7.1b to 8b. However paying higher interest on customer deposits resulted in profit before tax dipping from 274m to 238m.

Bank of India (No. 17) Loans increased by 700m, deposits by 800m, and profit before tax increased from 73m to 80m.

Fina (No. 19) which has a significant Rwanda operation bounced back from a 2004 loss of 51m to a 2005 profit of 95m largely from reduced provision for bad debts.

Giro (No. 21) which was acquired in September by the State Bank of India went from an 04 profit of 14m to a loss of 6m in 2005 largely due to increased operating expenses.

Southern Credit (No. 26) the credit card powerhouse increased deposits by 500m to 3.6b. But paying higher interest on deposits and increased operating expenses halved profits from 61m to 31m.

Victoria (No. 27) customer deposits and placements were each up by 500m to 5.58b and 1.56b respectively. While fee income was flat, profit before tax increased from 45m to 124m largely from increased interest income.

Habib (No. 32) bank (not to be confused with the other Habib AG Zurich) posted a reduced profit of 21m, down from 94m, owing to increased interest on deposits and provision for bad debts.

Consolidated (No. 33) reduced their ’04 loss from 90m to 13m in 2005. While staff costs increased from 150m to 195m, they were able to contain other operating expenses.

Fidelity (No. 37) improved from a ’04 profit of 1m to a 23m in 2005 owing to increased fee and commission income and reduced provisions for bad debts.

Paramount Universal (No. 39) loans increased from 758m to 892m and profit also went up from 12 to 16m.

Other Developments

Tax war
Between the United Business Association and the Kenya Revenue Authority over the issue of electronic tax registers

Tourism
The 2006 tourism expo targeting the low season kicks off at the Sarit Center on March 31.

Solar for tourists: Mombasa beach hotel is seeking a solar-based water heating system (deadline is April 28).

Jobs

British American tobacco
– Accounts assistants
– Trainee technical operators
Apply by April 12 to hr_batkenya@bat.com

CFC Bank
– Communications/network engineer
– Database administrator
– Software engineer
Apply to the senior manager HR P O Box 72833-00200 Nairobi by April 10

East African Breweries
– Demand planning manager
– Field logistic coordinators
Apply by April 12 to hrrecruitment@eabl.com

East African Standard
– Head of ICT services
– Head of HR services
Apply to pa-gceo@eastandard.net by April 10

Research & development manager at an investment bank. Apply to fke@wananchi.com by April 12.

Manager customs & excise at Pricewaterhousecoopers. apply to recruitment.ke@ke.pwc.com by April 13

Various jobs at the Kenya Meat Commission which plans to resume operations in June ’06.
– Apply to the Federation of Kenya employers at fke@wananchi.com for production manager, quality control manager livestock manager, internal auditor, HR & admin manager and finance manager positions.
– Former employees under 55 years who were in following departments – technicians, production, machine operators meat cutters, and packers are invited to apply to kenyameatcom@africaonline.com.

February 21

Bank news

SMS Banking: Paramount Bank is the latest to introduce SMS Banking in conjunction with Safaricom. Each SMS received e.g. for mini-statements, withdrawal/deposit notifications, balance queries and Forex rates will result in a 10 shillings debit to an account. This compares with Co-op Bank which charges 15/= to 30/= for similar services via mobile phone.

Top dog: Citibank Kenya gets a new MD

Un-doing Githongo

The Kenya Pipeline Company has resumed construction of its headquarters in Embakasi which was stopped by then-PS John Githongo. A move to a new building, once completed, should save the company about 50 million a year which it pays to the National Bank for renting one-quarter of its headquarters in downtown Nairobi.

Other news
BAT: In 2005, British American tobacco turnover increased from 9.87b to 11.2 billion shillings and after-tax profit increased from 1.21b to 1.38b. The company will pay a final dividend of 4.5 shillings after the AGM on 25 April to shareholders as at 20 March. Total dividend for the year will be 12.5 out of EPS of 13.82 shillings for the year. Like EABL and Safaricom who probably feel some guilt over their high annual profits, BAT reminded the public that they paid 5.3 billion shillings to the government through excise, VAT and income taxes last year.

Kengen has cancelled a controversial plan to reserve IPO shares in the company for a select group of investors.

The NSSF is still saddled with several prime plots a year after they first tried to sell them. These include a 4.7 acre parking lot between GPO & Grand Regency, .9 & 1.3 acre plots on State House, 2 acres opp. Fairview Hotel and 63 beach-front acres in Kikambala Mombasa, among others. They appear to have sold their 50 acres near Karen, 20 acres on Langata Road and 2.5 acres on Hospital Rd in Upper Hill.

Opportunities
Develop websites for the Government of Kenya (tender 3/2005/06 ) including the official government website and standard sites for each of the 33 government ministries. Apply to the Secretary to the Cabinet and Head of Public Service, P O Box 62345-00200 Nairobi by March 20. More info can be obtained from the ICT secretary at info@kenya.go.ke and the application process also includes a non-refundable fee of 10,000 shillings.
Import from Japan: The Government of Japan is funding an import substitution program for businessmen and companies through the Government of Kenya Monday. Apply by March 13 to crownagents@ke.crownagents.com.

Jobs
– AATF administration & finance manager at the Africa-agricultural technology foundation. Apply at aatf@aatf-africa.org by Feb 24
– Danida Kenya senior private sector development adviser. Apply here y Feb 23.
– IFC Expert consultants at the Africa business environment rapid response task force. Apply at ifc.org/careers by March 3.

Politics
Political Reform*1: Planning Permanent Secretary, Dr. Edward Sambili, has called for the Kenya Anti-Corruption Commission to probe allegations of misuse of constituency development funds (CDF).
Political Reform*2 From South Africa – Contained in the ANC’s election manifesto is a code of conduct for their municipal candidates that Kenyan MP’s should be asked to swear to include;
– I will fight against corruption in any guise or form.
– I will listen to the views of the community and hold a public meeting with all community members to report back on my work, at least four times a year.
– I will live in the community that has elected me.