No doubt, there will be very strong, embarrassingly record profits (esp. from Equity Bank), which will shock Kenyan’s but the results are for the year (2007) which was virtually over by the time that the country plunged into chaos. The impact of the economic disruptions, violence, and framework may not be seen at banks until after June 2008. Meanwhile one bank that was in expansion mode has put off the program and staff recruitment until further notice.
SME Finance: EABS Bank, soon to be Eco Bank (after the West African bank takes over 75%), has partnered with Enablis to provide young and upcoming entrepreneurs with bank loans this year.
Check your own credit: what has been personal right for millions of US consumers is now available in Kenya – the self credit check. The service is offered by CRB Africa, Kenya’s leading credit reference bureau, but many here have no credit at all. Still it’s a free service, which someone should try out.
Corporate governance; KCB has an ethics help desk at its site to receive confidential reports on fraud and workplace abuses within the organization.
Bug-me-not: From the bankwatch blog comes results of a survey that shows bank customers do not want bothersome SMS’s sent to their phones that don’t add value or inform them much e.g. account balance messages that cost 30 shillings ($0.4). I think it would be useful to have services that tells you when a cheque is about to bounce, or the CFC chip card alerts which inform account holders each time their credit card is charged
opportunities
– EADB: Project Officers, Senior Project officers,
– I&M Bank: Credit Officer, Treasury Dealers/Officers, (Asset) Relationship Manager, (Liability) Relationship Manager, and Relationship Officer
– Inter Region Economic Network (IREN) : Webmaster, HTML text editors, Editor, Marketing Manager, and 3-month internships for year 2008. Apply to the Programs Manager, info@irenkenya.com by 15/2
Yeah profits are on the rise but i hear some banks will be very stingy with bonuses this year….uncertainity of the future!
xs: they can’t refuse. bonuses are based on results (esp for top management) and the year was good (up to Dec 27).
they can declare caution in terms of 2008 and reeduce bonuses going forward, but not backwards
Banks, as you know am eeeeeh directly affected, so trust me when i tell you that ‘We have been warned’ – By the way the excuses being used are so LAME!
I think the effects of the post-election violence will drag on through 2008 for most banks.
Many customers have been killed while others have their livelihoods destroyed.
Many banks will slow down expansion esp where it seems ethnic tensions run high.
The losses for most banks are compounded by the slow judicial process in Kenya.
Today I read the Standard newspaper where Jimnah Mbaru has been quoted saying the NSE daily average turnover is worrying. From a figure of k’sh 600m in mid December, it’s now a partly k’sh 250million.
I hope the huge profits announcement will drive the market north. Currently the bourse is suffering from a confidence crisis. If the banks announce some bonus share/high dividends, it will help in boosting investor’s confidence. Even if it’s on a short-term basis.
BAd debts will pre-occupy a few of the banks esp BBK which was lending for a song.
Xs-the lame excuses are the same worldwide.
As an aside, alot of insurance companies are refusing to insure employees travelling to Kenya for business reasons
Btw, if were a bank FD with supernormal profits to announce, I’d book a higher than normal loan loss provision for 2007. Its allowed. That way, 2008 would look great when compared to peers.
xs: na jua
coldtusker: definetly portfolios are badly affected this year, but profits are booked for ’07
Concept: I saw that. But I would not selll in a down market, unless I had no choice, so ride out your losses
MainaT: More banks than barclays will take a hit> If i was a bank with super profits, I’d delay announcement till the last day of March (final legal date) to announce. By then, hopefuly, the bad events of Dec/Jan will be a somwehat distant memory