Diamond Trust Bank Kenya Plc (NSE: DTK) released 1H19 financial results reporting an increase of 11.0% y/y in Profit after Tax (PAT) to KES 3.9Bn. The performance was supported by Non-Interest Revenue (NIR) which grew 8.5% y/y to cushion income against the 7.5% y/y drop in Net Interest Income (NII). Consequently, operating income was down 4.0% y/y to KES 12.2Bn. Total operating expenses fell 14.4% y/y to KES 6.2Bn attributed to a 68.1% y/y decline in loan provisions to KES 534.2Mn. Deposits rose 0.5% y/y, and consequently, the balance sheet was flat. The loan book remained depressed (-3.8% y/y) at KES 190.8Bn and similarly investment in government securities also declined 4.8% y/y to KES 120.7Bn. Against a target price of KES 149.80 we maintain our BUY recommendation on DTK with an upside of 32.3%.
Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:
The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.
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