NBK Ndrama Part 3

[system]

31 March 2015- Bank reports unaudited profit before tax of 684 million

30 June 2015- Bank reports unaudited profit before tax of 2.5 billion

30 September 2015- Bank reports unaudited profit before tax of 3.1 billion

30 March 2016- Bank makes a profit warning as required by CMA

31 March 2016- Bank reports audited loss before tax of 1.2 billion for the year ended 31 December 2015

A reversal of 4.3 billion in profits!!! Hapa kuna chinda. I now see why they had to send home top managers. They were cooking books but luckily Deloitte discovered them

[Meria_Mata]

Panic withdrawals being reported at branches countryside as National bank of Kenya customers line up to withdraw their funds.

[Meria_Mata]

What’s the impact of this many withdrawals @Okiya

[Yollo]

@Meria Mata

Panic withdrawals being reported at branches countryside as National bank of Kenya customers line up to withdraw their funds.

Who still banks at nbk? maybe walimu

[captain_obvious]

Surely, I wonder why people still bank there. Even if you’re not an expert on financial matters, its dull appearance should be enough to put you off.

[Guru]

What I know is that gava will not allow the bank sink, of course, the usual will happen, pumping more money to ‘save’ the damn bank… But what really happens to the management that led to this?

The kuku thief is jailed for 2 years while a billion thief is out on bond… Oo Lord have mercy!

[Electronics4u]

@Meria Mata

What’s the impact of this many withdrawals @Okiya

CBK steps in and the bank is put under its watch. All branches are closed and your cash is withheld for months.
Run while its still early!

[Yollo]

@Guru

What I know is that gava will not allow the bank sink, of course, the usual will happen, pumping more money to ‘save’ the damn bank… But what really happens to the management that led to this?

The kuku thief is jailed for 2 years while a billion thief is out on bond… Oo Lord have mercy!

This opus dei guy hataki mcheso, big fish be warned

[captain_obvious]

@Electronics4u

CBK steps in and the bank is put under its watch. All branches are closed and your cash is withheld for months.
Run while its still early!

It is actually referred to as a bank run. As defined by Investopedia:
[SIZE=5]What is a ‘Bank Run’[/SIZE]
A bank run is a situation that occurs when a large number of bank or other financial institution’s customers withdraw their deposits simultaneously due to concerns about the bank’s solvency. As more people withdraw their funds, the probability of default increases, thereby prompting more people to withdraw their deposits. In extreme cases, the bank’s reserves may not be sufficient to cover the withdrawals. A bank run is typically the result of panic, rather than a true insolvency on the part of the bank; however, the bank does risk default as more and more individuals withdraw funds - what began as panic can turn into a true default situation.

[system]

@Meria Mata

What’s the impact of this many withdrawals @Okiya

Liquidity

[system]

@Yollo

This opus dei guy hataki mcheso, big fish be warned

Hii hapana Opus Dei. Hii ni Deloitte wamefanya job poa

[Meria_Mata]

@captain obvious

It is actually referred to as a bank run. As defined by Investopedia:
[SIZE=5]What is a ‘Bank Run’[/SIZE]
A bank run is a situation that occurs when a large number of bank or other financial institution’s customers withdraw their deposits simultaneously due to concerns about the bank’s solvency. As more people withdraw their funds, the probability of default increases, thereby prompting more people to withdraw their deposits. In extreme cases, the bank’s reserves may not be sufficient to cover the withdrawals. A bank run is typically the result of panic, rather than a true insolvency on the part of the bank; however, the bank does risk default as more and more individuals withdraw funds - what began as panic can turn into a true default situation.

Aren’t banks insured?

[Mr_Black]

This thing was supposed to be sold alongside consolidated bank, all this was avoidable.

[system]

@Meria Mata

Aren’t banks insured?

Banks are insured against risks such as fire, theft, floods, fidelity but not against collapse.

[shingo_upande]

@Okiya

Hii hapana Opus Dei. Hii ni Deloitte wamefanya job poa

Hawa deloitte mi apana amini.
Hio opusss dei tosha,apewe kiti ya gavana Nairobi
"
Deloitte & Touche has been accused of professional misconduct in handling the books of four Kenyan companies including Mumias, CMC Holdings, Tuskys Supermarket and the collapsed Dubai Bank."©business daily.

[system]

@shingo upande

Hawa deloitte mi apana amini.
Hio opusss dei tosha,apewe kiti ya gavana Nairobi
"
Deloitte & Touche has been accused of professional misconduct in handling the books of four Kenyan companies including Mumias, CMC Holdings, Tuskys Supermarket and the collapsed Dubai Bank."©business daily.

Trust me, from profits of 3.1 billion to a loss of 1.2billion has nothing to do with Opus dei. It must be loan provisions which resulted to the loss. CBK has no play in loan provisions in financial statements.

[Malaika_Firth]

Dyer and Blair Investment bank has also reported an alarming rate drop in profitability…kuna shida hapa it can’t be the economy that is doing that bad

[aviator]

The bank is unlikely to suffer liquidity issues to to mass withdrawals. The GOK is a customer there.

[qtip]

@Okiya

Trust me, from profits of 3.1 billion a loss of 1.2billion has nothing to do with Opus dei. It must be loan provisions which resulted to the loss. CBK has no play in loan provisions in financial statements.

CBK plays a major role in downgrading of assets by banks during their audits. Most banks do not want their asset classified as NPA since this means more provisioning and lower profits. Bankers hufanya juu chini to ensure that the big loans are not classified as NPA. That’s the pressure they have during CBK audits. The auditors in the past have been turning their backs and abetting this vice. Banks have been painting a rosy picture on the health of their asset portfolio.

[system]

@qtip

CBK plays a major role in downgrading of assets by banks during their audits. Most banks do not want their asset classified as NPA since this means more provisioning and lower profits. Bankers hufanya juu chini to ensure that the big loans are not classified as NPA. That’s the pressure they have during CBK audits. The auditors in the past have been turning their backs and abetting this vice. Banks have been painting a rosy picture on the health of their asset portfolio.

You are partly right. However, the provisioning you normally see in financial statements is as per accounting standards and not CBK standards.