DTB Shuts Down Six Branches

[$$$]

Nairobi
- Oval Digital Lobby Branch
- 9 West Branch
- Garden City Branch
- Eastleigh Branch
Malindi
- DTB Jamhuri Street Branch
Eldoret
- Kago Street Branch

*The bank was forced to close branches and ATM machines to cut down operating costs. Bear in mind that DTB issued a profit warning for FY 2020 like majority of the other banks.

I think times are tougher than I initially thought if banks have reached a point of closing down branches. Banks like DTB, Stanchart, I&M, and Barclays will probably have the biggest profit declines. In the local banking industry, the margins business (which these lenders thrive on) is extinct. Volumes are everything and that's where Equity, Co-op and KCB will make their money as other banks struggle to survive.

Most banks are trading cheap and I expect them to trade even cheaper later in the year after FY2020 results are released. It will be a great time to buy. Look at the juicy prices KCB at a 9% dividend yield (using FY2019 figures). A great investment opportunity is coming in Q2 this year. All eyes on Banking.

 

[shocks]

Munene, what do you make of Kenya Re?

 

[$$$]

Munene, what do you make of Kenya Re?

Not interested. A classic value trap with 60% government shareholding. No thank you.

 

[shocks]

Not interested. A classic value trap with 60% government shareholding. No thank you.

I think with a broke government all gova firms will be pushed to pay fat dividends, uliona safcom wameskumwa walipe interim. Income investing?

 

[shocks]

Nairobi
- Oval Digital Lobby Branch
- 9 West Branch
- Garden City Branch
- Eastleigh Branch
Malindi
- DTB Jamhuri Street Branch
Eldoret
- Kago Street Branch

lakini what was dtb doing with 3 branches at westgate, oval na 9 west, radius ya kama 500m

 

[$$$]

I think with a broke government all gova firms will be pushed to pay fat dividends, uliona safcom wameskumwa walipe interim. Income investing?

Uko na point. Shida ni, it is not wise to make an investment purely on dividends. You don't know which tyrant will seize power next year and milk Kenya-Re to the last cent. Have a look at KPLC stock price and you will get the idea.

This is what happens when politicians use a company for political reasons. Imagine the horror of being a KPLC investor. Unaumia tuu juu some idiot in Statehouse wants to connect everyone to the grid regardless of the cost. Government firms always have that risk of being used for political purposes, or being looted by managers who have no skin in the game. Mumias and Uchumi are already dead and in the water. KQ makes losses in billions every year. Kengen and Kenya Re are the only firms remaining and I am not sure whether they will survive the next government.

 

[Ngimanene na Muchere]

Acheni niwaambie siri: tafuta gavament entity that owes NCBA many many monies and I can guaradamntee that hio entity will always be bailed out na haitaanguka