Kenya banks' sector-wide profit before tax (PBT) grew 68% yoy in Q3 21, according to the latest data from Central Bank of Kenya. On a cumulative 9M 21 basis, PBT increased 63% yoy. Of our covered banks that have released results, KCB Group leads the pack with a 131% yoy jump in 9M 21 PAT, Equity Group comes in second with a 78% yoy increase and Co-op Bank comes in third with a 19% yoy rise. Some key trends in Q3 21 earnings performance include: 1. Improved asset quality with industry NPL rati...
The Central Bank of Kenya (CBK) has released a new study on small and medium-sized enterprises (SMEs), already an important sector for Kenyan banks but one with a great deal of growth potential. Our key takeaways on what the report means for the banks we cover: 1. SME SEGMENT ACCOUNTS FOR 20% OF INDUSTRY LOANS, BUT THERE IS UNTAPPED POTENTIAL The management teams of the Kenyan banks we cover argue that the SME sector is the next growth frontier. In our view, though, the majority of their loan...
Equity Group released 9M 21 results with EPS increasing 78% yoy to KES7.0. Despite a weak net interest margin, the bank's top-line performance was robust with total income growing 25% yoy, rising on strong non-interest revenue and balance sheet growth. Loan loss provision charge also declined 68%, with the bank recording notable asset quality improvement and higher coverage levels. WE RETAIN OUR HOLD RECOMMENDATION WITH A TP OF KES46.00 Strong non-interest revenue performance driven by non-vo...
Fundamental Research Corp has issued a report entitled “Equity Metals Corporation (TSXV: EQTY / OTCQB: EQMEF) - Bonanza-Grade Silver Intercepts in B.C. – Initiating Coverage” and dated September 21, 2021. The full report is now at
In line with Kenya's banking sector performance, Equity Group released stellar H1 21 results with EPS jumping 95% yoy to KES4.65. Although the performance was mainly driven by the 64% yoy decline in loan loss provision charge, the bank's top line performance was still impressive with total income growing by 33% yoy. The bank's top line was driven by: (i) strong balance sheet growth, which countered the decline in net interest margin from lower interest rates; and (ii) strong non-interest reve...
According to the latest data from Central Bank of Kenya, the country's banks recorded a 97% yoy increase in profit before tax (PBT) for the first two months of Q2 21 (April and May). In the first five months of 2021, PBT increased 42% yoy, which is still a strong performance for the banks. We believe the performance was mainly on the back of three factors: 1. Lower provision charges given that Q2 20 saw banks accelerate their cost of risk to counter the asset quality weakness related to Covi...
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