Genghis Capital - Diamond Trust Of Kenya Ltd (DTK) Diamond Trust Bank Kenya Plc 1H18 Earnings Note

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Genghis Capital

Patrick Mumu

EUR 25.38 For Business Accounts Only

Diamond Trust Bank Kenya Plc 1H18 Earnings Note

Diamond Trust Bank Kenya Plc (NSE: DTK) released 1H18 financial results reporting a 10.0% increase in Profit after Tax (PAT) to KES 3.8Bn from KES 3.4Bn in 1H17. The increase was buoyed by Net Interest Income (NII) which grew 4.6% y/y to KES 9.9Bn, coupled with Non-interest Revenue (NIR) that grew 8.0% y/y to KES 2.7Bn. Consequently, operating income was up 5.3% y/y to KES 12.7Bn. Total operating expenses increased by 4.0% y/y to KES 7.3Bn attributed to a 3.8% y/y rise in staff costs to KES 2.1Bn, while Loan Loss Provisions (LLP) declined 2.2% y/y to KES 2.1Bn. The balance sheet grew 9.4% y/y (2.3% q/q) driven by the 9.9% y/y (3.6% q/q) increase in deposits. Investment in government securities increased 20.2% y/y (8.0% q/q), as the loan book rose 3.5% y/y (2.1% q/q). We maintain our BUY recommendation on Diamond Trust Bank at a target price of KES 231.23. This represents an upside potential of 21.7% from the current market price of KES 190.00.

30/08/2018 5 EN

Underlying

Diamond Trust Of Kenya Ltd

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KE0000000158 Nairobi Securities Exchange Kenya

Provider

Genghis Capital

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:

i. Securities(Equity/Debt) Trading
ii. Research
iii. Wealth Management services
iv. Investment Advisory & Management via the GenCap Unit Trusts
v. Corporate Finance & Transaction Advisory services

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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Analysts

Patrick Mumu

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Diamond Trust Bank Kenya Plc 1H18 Earnings Note

Diamond Trust Bank: Underwhelming 9M 21 performance as investors remain uninterested

Kenya Banks: Sector Q3 21 PBT jumps 68% yoy, and outlook for Q4 is positive too

Kenya banks: Lucrative SME potential undercut by low yields and asset quality

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

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