Genghis Capital - Standard Chartered Bank Kenya Ltd (SCBK) Standard Chartered Bank of Kenya FY18 Earnings Note

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Genghis Capital

Patrick Mumu

Standard Chartered Bank of Kenya FY18 Earnings Note

Standard Chartered Bank of Kenya Plc (NSE: SCBK) announced a 17.1% y/y growth in FY18 EPS to KES 23.09, supported by a 4.5% y/y growth in Net Interest Income (NII) and a 4.9% y/y growth in Non-Interest Revenue (NIR). The bank continues its risk-off approach with the customer loan book contracting 6.1% y/y while government and other securities fell 8.4% y/y. The risk-off strategy enabled the bank to maintain a very liquid balance sheet, at a sector leading liquidity level of 66.1%. A major challenge has been Non-performing loans (NPLs) formation, which lies above the 12.0% sector average. A total dividend of KES 19.0 was declared, an 11.8% increase from FY17, which translates to a dividend yield of 9.5%. We are currently reviewing our banking sector coverage and valuation.

25/03/2019 4 EN

Underlying

Standard Chartered Bank Kenya Ltd

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KE0000000448 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

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Standard Chartered Bank of Kenya FY18 Earnings Note

Bank on it/Moody's took action on bank ratings mainly due to revised methodology

European banks/Supply shifts to senior from subordinated

Coffee, Croissants & Credit/UK banks and Nestlé

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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