Genghis Capital - KCB Group Ltd (KCB) KCB Group Plc (NSE: KCB) 1H18 Earnings Note

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Genghis Capital

Gerald Muriuki

EUR 25.27 For Business Accounts Only

KCB Group Plc (NSE: KCB) 1H18 Earnings Note

KCB Group Plc (NSE: KCB) 1H18 PAT grew 18.1% y/y to KES 7.90 majorly from a 58.9% y/y drop in loan impairment charges and a 6.1% growth in net interest income. Non-performing loan ratio (NPL) fell 150bps q/q due to 14.0% q/q drop in gross non-performing assets. An interim dividend of KES 1.00 is recommended to shareholders on register as at 3^rd September. KCB trades at a P/B of 1.4x and dividend yield of 6.1% against sector’s 1.5x and 4.7%respectively. Against the resilient 1H18 results, we maintain our HOLD recommendation with a target price of KES 50.62, a 2.3% upside potential on the current price of KES 49.50.

17/08/2018 5 EN

Underlying

KCB Group Ltd

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KE0000000315 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

Gerald Muriuki

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KCB Group Plc (NSE: KCB) 1H18 Earnings Note

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

Kenya Commercial Bank: 9M 21 – impressive results and management's 2023 strategy is now within reach

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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