Equity Group Holdings FY18 Earnings Note
Equity Group Holdings Plc (NSE: EQTY) reported a 4.8% y/y growth in FY18 Earnings per Share (EPS) to KES 5.25. This was supported by a 10.3% y/y growth in Net interest income (NII), despite a 6.3% y/y drop in non-interest revenue (NIR). The growth in NII was supported by a 7.5% y/y growth in loan interest income to KES 36.4Bn, coupled with robust 21.7% y/y growth in interest income from government securities to KES 16.3Bn. All NIR items, save for marginal growth in other income (2.1%), declined y/y (total fees and commissions down 5.3% while forex income down 19.5%). The loan book grew 6.5% y/y, with 86% of loans processed through the digital platform, Equitel. The bank maintains a relative conservative strategy, evidenced by the significant rise in government and other securities to KES 161.0Bn (25.7% y/y). A total dividend of KES 2.00 was declared, similar to FY17, which translates to a dividend yield of 4.7%. We are currently reviewing our banking sector coverage and valuation.
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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