Genghis Capital - IM Holdings Ltd (IM) IM Holdings Plc 1H18 Earnings Update

Report

Genghis Capital

Patrick Mumu

EUR 27.46 For Business Accounts Only

I&M Holdings Plc 1H18 Earnings Update

I&M Holdings Plc (NSE: I&M) released 1H18 financial results reporting a 12.8% y/y increase in EPS to KES 8.78 from KES 7.86 in 1H17. The increase was buoyed by Non-interest Revenue (NIR) which grew 34.4% y/y to KES 3.7Bn, while Net Interest Income (NII) was muted (0.1% y/y) at KES 6.9Bn. Total operating expenses increased 15.8% y/y to KES 5.7Bn attributed to a 46.2% y/y rise in Loan Loss Provisions (LLP) to KES 1.4Bn and staff costs, which rose 10.2% y/y to KES 2.0Bn. The balance sheet grew 23.5% y/y (14.9% q/q) driven primarily by customer deposits that were up 30.6% y/y (22.9% q/q), as the loan book rose 12.6% y/y (6.6% q/q). We upgrade our recommendation to a BUY on I&M Holdings at a target price of KES 126.18, with the counter having lost 17.3% YTD. This represents an upside potential of 20.2% from the current market price of KES 105.00.

30/08/2018 5 EN

Underlying

I&M Holdings Ltd

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KE0000000125 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

Other Reports on these Companies

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East African Breweries Ltd (NSE: EABL) announced weak y/y performance as expected but a rebound h/h with net revenue down 3.1% y/y (+53.2% h/h) to KES 44.5Bn. The h/h recovery follows relaxation of pandemic-related restrictions in the July-Dec 2020 period with volumes (-5.0% y/y) and sales almost normalizing to pre-pandemic levels in 2019. In addition to the weak volumes, the business grappled with weaker currency, higher direct costs (gross margin at 43.5% from 47.7% in 1H20) and one-off tax provision which led to a faster drop in Profit Before Tax (PBT) of 45.0% y/y despite the resilient sal...

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I&M Holdings Plc 1H18 Earnings Update

2019 Banking Sector Report

I&M Holdings Plc (NSE: I&M) 3Q18 Earnings Note

Kenya Banking Sector Report 1H18 â€“ Weakened but Resilient

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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