2020 Sector Report; Banking under Covid-19
We recommend a BUY on the banking sector based on attractive multiples notwithstanding the expected depressed performance: Against the depressed earnings, the market offers attractive entry points to the sector, with KCB and COOP trading below 1.0x price-to-book, while Equity, ABSA and Standard Chartered are below their historical averages. However, we like KCB, Equity, COOP and Absa. While Return on Equity (RoE) will remain depressed in FY20, our long-term ROEs are expected to recover substantially in the years post-pandemic from the growth in the balance sheets and subsiding provisioning levels.
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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