Genghis Capital - Stanbic Holdings Plc (CFC) Stanbic Holdings Plc 1H18 Earnings Update

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Genghis Capital

Patrick Mumu

EUR 27.43 For Business Accounts Only

Stanbic Holdings Plc 1H18 Earnings Update

Stanbic Holdings Plc (NSE: CFC) released 1H18 financial results reporting a 104.5% increase in EPS to KES 8.99 from KES 4.39 in 1H17. The increase was buoyed by Non-interest Revenue (NIR) that grew 34.0% y/y to KES 5.57Bn, coupled with Net Interest Income (NII) that grew 11.9% y/y to KES 5.61Bn. Operating expenses grew 11.4% y/y while credit impairment charges declined 86.1% y/y to KES 0.25Bn. The balance sheet grew 19.0% y/y driven primarily by the loan book which rose 15.4% y/y (7.5% h/h) as the bank continued to lend, amidst the tightening of price controls. An interim dividend of KES 2.25 was declared, representing an 80.0% increase from 1H17 (KES 1.25), with book closure slated for 10th September. We maintain our HOLD recommendation on Stanbic Holdings at a target price of KES 91.16. This represents a downside potential of 7.0% from the current market price of KES 98.00.

15/08/2018 5 EN

Underlying

Stanbic Holdings Plc

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KE0000000091 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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Stanbic Holdings Plc 1H18 Earnings Update

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 banks: Profit before tax up 97% yoy in first two months of Q2

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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