I&M Holdings Plc (NSE: I&M) released 3Q18 financial results reporting a 13.8% y/y increase in profit after tax to KES 5.5Bn from KES 5.1Bn in 3Q17. The increase was buoyed by Non-interest Revenue (NIR) which grew 38.4% y/y to KES 5.6Bn, while Net Interest Income (NII) declined marginally (-4.2% y/y) to KES 10.3Bn. Consequently, operating income was up 7.4% y/y to KES 15.8Bn. Total operating expenses were muted, +1.7% y/y to KES 8.2Bn attributed to a 25.5% y/y decline in Loan Loss Provisions (LLP) to KES 1.4Bn and staff costs, which rose 10.8% y/y to KES 2.0Bn. The balance sheet grew 23.4% y/y driven primarily by customer deposits that were up 26.4% y/y (-1.0% q/q), as the loan book rose 9.8% y/y (0.3% q/q). We maintain our BUY recommendation at a target price of KES 113.67. This represents an upside potential of 34.1% from the current market price of KES 84.75.
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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