Wednesday, May 07, 2008

Bumper Q1 Bank results- why not BBK?

Banks like Equity, KCB have defied predictions by professional and amateur pundits about their Q1 2008 results. Equity saw 81% yoy growth driven by Ksh1.1bn income growth, which is crazy given that Q2 will be a phenomena. KCB saw 63% growth with a humongous Ksh2.1bn growth in income . Not so BBK with virtually unchanged PAT from 2007's first quarter. Though income grew by Ksh1.6bn, Ksh0.8bn of this was eaten by additional staff expenses and the rest by operating expenses i.e. more branches? So why oh why did I bother buy so much of this BBK stock last year rather than even NBK? Chasing mirages, that's what...

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