Par Value: 1/-
Closing Price: 48.55
Total Shares Issued: 3087443344.00
Market Capitalization: 149,895,374,351
EPS: 6.1
PE: 7.959
KCB Group consolidated for the 6 month period ended 30th June 2021
HY Total Assets 1.022153011 Trillion versus 953.071512b +7.248%
HY Loans and Advances to Customers [Net] 606.967409b versus 559.884343b +8.409%
HY Kenya Government Securities [Held at amortized cost] 106.067077b versus 85.625298b
HY Kenya Government Securities Fair value through OCI 89.011282b versus 106.351164b
HY Customer Deposits 786.035101b versus 758.241255b
HY Total Interest Income 47.117996b versus 41.382127b
HY Total interest expenses 10.701736b versus 10.312539b
HY Net Interest Income 36.416260b versus 31.069588b +17.2%
HY Total Other Operating Income 14.793637b versus 13.963610b
HY Total Operating Income 51.209897b versus 45.033198b
HY Loan Loss Provision 6.5834174b versus 11.027244b
HY Staff Costs 12.254755b versus 10.098346b
HY Total Other Operating Expenses 29.294245b versus 32.208440b
HY Profit before Tax and exceptional Items 21.915652b versus 12.824758b
HY Profit and after Tax 15.300915b versus 7.557605b +102%
HY EPS 8.53 versus 5.33 +60.03%
HY Gross NPLs 95.732747b versus 83.884432b
@KCBGroup H1 2021 vs H1 2020: @MwangoCapital
https://twitter.com/MwangoCapital/status/1428097788164911109?s=20
Customer deposits up 3.7%
Loan book up 8.4%
Total assets Ksh 1.02T
Total interest income up 13.9%
Net interest income up 17.2%
Provisions down 40.3%
Total opex down 9%
PBT up 70.9%
PAT up 101.9%
EPS Ksh 8.53 [2020: 5.33]
No interim dividend
Conclusions
Strong results.
KCB Full Year Results through 31st Dec 2020
FY Total Assets 987.810b versus 898.572b
FY Financial Assets at Fair Value 94.284b versus 66.238b
FY Financial Assets at amortised cost 111.357b versus 96.977b
FY Loans and Advances to Customers [net] 595.255b versus 539.747b
FY Deposits from Customers 767.224b versus 686.583b
FY Net Interest Income 72.144b versus 61.424b
FY Non Interest Revenue 23.852b versus 22.877b
FY Total Income 95.996b versus 84.301b
FY Credit Impairment Losses [27.509b] versus [8.889b]
FY Income after Impairment Charge 68.880b versus 75.412b
FY Total Operating Expenses [43.291b] versus [38.679b]
FY Profit Before Tax 25.719b versus 36.897b
FY Profit After Tax 19.604b versus 25.165b
FY EPS 6.10 versus 7.83 -22.094%
FY Dividend 1 versus 3.50
Cash and Cash Equivalents 65.174b
KCB GROUP PLC ABRIDGED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
https://j.mp/3s9GLGl
KCB Group Investor Presentation
https://j.mp/3rYPfjc
25.2M Customers
Restructured 3,800 SME loans valued at Kes 7.5 billion
98% Transactions performed outside the branch.
On average, tellers are now doing half of the daily transactions they used to do five years ago
MOBILE BANKING Channel Performance
Mobile Revenue (Kes M) Kes 1 Trillion
Value of mobile banking transactions driven by a 7X growth in mobile banking deposits.
-22% Decline in mobile banking revenues due to fee waivers
-27% Decline in total mobile loans Advanced driven by a 50% decline in KCB Mpesa disbursements
50% Growth in Agency Banking Volumes to Kes 448B due to continued shift to digital channels
14.7% Group NPL ratio driven by Tourism, restaurants & hotels and manufacturing sectors
14.1% Industry NPL (Kenya) as at December 2020, up from 12.0% in December 2019
19.6% Proportion of KCBs restructured loan book representing total value of Kes. 106.1 billion
Cost to Income Ratio 44.7%
KCB Group Plc. reported a net profit of KShs. 19.6B for the full year ending December 2020. This was a 22% decline from the KShs.25.2B a year earlier @KCBGroup
https://twitter.com/KCBGroup/status/1372227034513035265?s=20
KCB Group Plc. reported a net profit of KShs. 19.6B for the full year ending December 2020.
This was a 22% decline from the KShs.25.2B a year earlier as higher provisions for loan losses & subdued economic activity associated with the COVID 19 pandemic hit business performance.
.@KCBGroup An overview of the performance by our subsidiaries.
https://twitter.com/KCBGroup/status/1372227071892668419?s=20
Conclusions
Inexpensive on a PE Ratio of 6.549
A great deal will depend on the shape of the Rebound in 2021
I think there is plenty of scope with the subsidiaries over the next 5 years
KCB Group reports HY Earnings through 30th June 2020
HY Total Assets 947.068b versus 746.519266b
HY Loans and Advances to Customers [net] 553.861270b versus 478.740510b
HY Customer Deposits 740.444394b versus 563.236258b
HY Total Interest Income 41.382127b versus 33.602783b
HY Total Interest Expenses 10.312539b versus 8.210214b
HY Net Interest Income 31.069588b versus 25.401569b
HY Total Other Operating Income 13.963610b versus 13.172144b
HY Total Operating income 45.033198b versus 38.573733b
HY Loan Loss Provision 11.027244b versus 3.031105b +263.8%
HY Total Other Operating expenses 13.963610b versus 13.172144b
HY Profit before Tax 12.824758b versus 17.933076b
HY Profit after Tax 7.577605b versus 12.722943b
HY EPS 4.72 versus 8.30
For the period under review, KCB restructured facilities worth KES 101.0 BN to cushion customers against the effects of the crisis.
(NPLs) expanding by 214.6 percent to Kes.83.9 billion from Kes.39.1 billion
Conclusions
Predictably grim. The Challenge is around the longevity of the COVID19 [economic primarily] Pressure which I do not expect to abate through H1 2021
KCB Group PLC FY 2019 results through 31st December 2019 vs. 31st December 2018
FY Financial assets at fair value through other comprehensive income 70.614b vs. 83.805b -15.740%
FY Loans and advances to customers (net) 535.371b vs. 455.880b +17.516%
FY Total Assets 898.572b vs. 714.313b +25.795%
FY Deposits from customers 686.583b vs. 537.460b +27.746%
FY Total equity 129.741b vs. 113.661b +14.147%
FY Net interest income 56.130b vs. 48.830b +14.950%
FY Non interest revenue 28.172b vs. 22.973b +22.631%
FY Total income 84.302b vs. 71.803b +17.407%
FY Credit impairment charges 75.413b vs. 68.859b +9.518%
FY Total operating expenses [38.680b] vs. [34.698b] +11.476%
FY Profit before tax and loss on monetary position 36.733b vs. 34.161b +7.529%
FY Gain/[loss] on monetary position 164m vs. [302m] +154.305%
FY Profit before income tax 36.897b vs. 33.859b +8.973%
FY Income tax expense [11.732b] vs. [9.864b] +18.938%
FY Profit for the year 25.165b vs. 23.995b +4.896%
Basic and diluted EPS 8.11 vs. 7.83 +3.576%
Dividend per share 3.50 vs. 3.50
Cash and cash equivalents at 31 December 63.202b vs. 50.629b +24.834%
Key Financial Highlights
Performance Measure 2019 vs 2018
Key Ratios
Non Funded Income 33.4% from 32%
Return on Equity 20.7%
NPL Coverage (IFRS) 72.1% from 68.6%
Liquidity Ratio 37.1% from 33.3%
Cost to Income Ratio (excl. provisions) 45.7%
Cost of Funds 2.8% from 3.2%
Group CEO Review
KCB Group CEO and MD, Joshua Oigara said the business remained resilient despite the challenging economic conditions witnessed in the various markets and the wider global economy.
The East African region continued to face various downside risks that ranged from adverse weather patterns to stress from currency fluctuations and the pressure from oil imports he said while releasing the results in Nairobi on Thursday.
All business lines were strong on both funded and non funded income as cost control, operational efficiency and driving excellent customer experience remained a top priority, said Mr. Oigara.
Both the Kenya business and the international subsidiaries delivered strong income growth. Acquisition of National Bank of Kenya (NBK)a transaction that was finalized in the last quarter of 2019 solidified the Groups base from a revenue and balance sheet position.
Income Growth
Total income increased 17% to KShs.84.3 billion while operating expenses grew much slower by 10%, resulting in an improved cost to income ratio of 45.7%, compared to 48.7% the previous year.
Net interest income expanded 15% to KShs. 56.1 billion from KShs. 48.8 billion primarily due to a 17% growth in loan book, digital lending and additional interest income from NBK. Fees and commissions surged 39% to KShs. 19.8 billion on diversified income streams.
The Digital Bank
Enhanced investments in digital channels pushed non funded income up 22.6% to KShs.28.2 billion from KShs.23.0 billion in 2018.
Our investments in diversified channels are giving our customers a means to access banking services conveniently, at a competitive prices and in line with our purpose of simplifying their world to enable their progress said Mr Oigara.
During the year under review, the number of non bank transactions increased to 97% with a majority of them conducted via mobile devices.
Mobile loans advanced increased to KShs. 212 billion from KShs. 54 billion in 2018. The cumulative disbursement via mobile over the past five years totaled to KShs. 319 billion.
Cost Management and Efficiency
At KShs. 38.5 billion, total pre provision operating expenses were relatively contained due to cost efficiency measures, growing from KShs. 35.0 billion, largely driven by staff costs which went up 13.4% in part due to the acquisition of NBK.
Balance Sheet Growth: The Ksh1 trillion Goal
KCB maintained its lending pattern in 2019, growing assets base despite lower asset yield, observed in the key market Kenya due to reduction of the benchmark lending rate.
Total assets surged 26% to KShs.899 billion from KShs. 714 billion in 2018.
The key drivers for this growth were the loan book growth of 17 % to KShs 535.4 billion reflecting the strong lending pipeline primarily driven by retail and corporate banking customer segment and the customer deposits growth of 28% to KShs. 686.6 billion.
The main driver for this growth was acquisition of NBK.
Credit Quality
The ratio of non performing loans to total loan book increased to 10.9% (7.4% excl. NBK), well below the industry average of 12.0%. As a result, provisions for impairment increased to KShs. 8.9 billion from KShs.2.9 billion.
The key sectors driving this deterioration in asset quality were trade, tourism and manufacturing sectors within the corporate banking book and on the mobile loan portfolio.
The stock of NPLs increased to KShs. 63.4 billion (KShs. 38.2 billion excluding NBK) up from KShs 32.7 billion in 2018, following consolidation with NBK.
Shareholder Returns
Overall, the business continued to generate good returns for its shareholders averaging a return on equity of 20.7% in 2019. Shareholders equity was up 14.1% from KShs113.7 billion to KShs.129.7 billion.
KCB distributed part of the profit by way of an interim dividend of KShs 1.0 per share in the course of 2019. The KCB Group Board has proposed a final dividend of KShs. 2.5 per share to be presented to shareholders in the Annual General Meeting to be held in May this year.
Capital Position
KCB Group maintained healthy buffers on its capital ratios over the minimum regulatory requirement. All banking subsidiaries met regulatory capital requirement with the exception of NBK which was below total capital requirement. This is expected to be addressed within the first half of 2020 through various initiatives at NBK.
The Groups core capital as a proportion of total risk weighted assets closed the period at 17.2% against the Central Bank of Kenya statutory minimum of 10.5%. Total capital to risk weighted assets stood at 19.0% against a regulatory minimum of 14.5%.
Outlook
Last year represented a significant period with the maturity of the Groups 2015 2019 Strategic Plan which was anchored on customer experience, network spread, youth agenda, digital financial services, new businesses, robust IT platform, and strategic partnerships. This year marks the start of our new 3 year strategic cycle.
Going forward, the business outlook for the year remains positive, with significant gains expected following the removal of the cap on interest rates in November 2019.
The banking sector is seeing heightened regulatory scrutiny, increased competition, amplified adoption of digital banking, and shifting economic environment across the East African region. In the face of these shifts, we have positioned ourselves and tapped into opportunities presented as we navigate past the challenges. We are focused on deepening our contribution towards financial deepening and economic development, said the KCB Group Chairman, Andrew Kairu.
Mobile loans advanced increased to KShs. 212 billion from KShs. 54 billion in 2018. The cumulative disbursement via mobile over the past five years totaled to KShs. 319 billion. #KCB2019FYResults @tradingroomke
https://twitter.com/tradingroomke/status/1237971352453287936?s=20
@KCBGroup Total assets surged 26% to Sh899 Bn from Sh714 billion in 2018. @tradingroomke
https://twitter.com/tradingroomke/status/1237970451441352712?s=20
Highlights of performance from the KCB Group PLC subsidiaries in 2019 which saw a 7.4% growth in International business PBT. #KCB2019FYResults @KCBGroup
https://twitter.com/KCBGroup/status/1237973099708121090
Conclusions
Bulked up the balance sheet.
Obviously NBK was a Net Add.
It will be interesting to see ow aggressively they pivot post the Rate Cap removal.
KCB Group PLC HY 2019 results through 30th June 2019 vs. 30th June 2018
HY Kenya Government securities held at amortized costs 56.554157b vs. 25.177938b +124.618%
HY Kenya Government securities fair value through OCI 69.252495b vs. 72.018993b -3.841%
HY Loans and advances to customers (net) 478.730510b vs. 421.508507b +13.576%
HY Total Assets 746.519266b vs. 667.681636b +11.808%
HY Customer Deposits 563.236258b vs. 524.938523b +7.296%
HY Total shareholders funds 117.523812b vs. 98.983891b +18.730%
HY Total interest income 33.602783b vs. 32.219618b +4.293%
HY Total interest expenses [8.201214b] vs. [8.074154b] +1.574%
HY Net interest income 25.401569b vs. 24.145464b +5.202%
HY Total operating income 38.573733b vs. 35.625234b +8.276%
HY Loan loss provision [3.031105b] vs. [827.684m] +266.215%
HY Total other operating expenses [20.640657b] vs. [18.530008b] +11.390%
HY Profit before tax and exceptional items 17.933076b vs. 17.095226b +4.901%
HY Profit/ [loss] after tax and exceptional items 12.722943b vs. 12.111360b +5.050%
Basic and diluted EPS 8.30 vs. 7.90 +5.063%
Interim Dividend per share 1.00 vs. 1.00
Total NPL and Advances 34.577711b vs. 33.087955b +4.502%
Net NPL and Advances 18.497074b vs. 13.713951b +34.878%
Liquidity ratio 34.9% vs. 35.3% -0.400%
an overall performance summary KCB2019HYResults @KCBGroup
https://twitter.com/KCBGroup/status/1161872721954910210?s=20
Our international bank subsidiaries continued good perform, with all but one (Uganda) of the businesses delivering high double digit earnings growth. This growth has been driven by balance sheet momentum with loans advances registering a 23% growth. @Kiambi_K KCB2019HYResults
https://twitter.com/KCBGroup/status/1161872558771380224?s=20
Fees and commissions increased by 31% to KShs. 8.9 billion as revenues from digital channels in particular KCB MPESA grew significantly powered by the new platform launched late last year. KCB2019HYResults
https://twitter.com/KCBGroup/status/1161869146457591808?s=20
Conclusisons
Price to Book of 1.1. PE of 5.064 inexpensive and a Value Proposition
KCB Group PLC FY 2018 results through 31st December 2018 vs. 31st December 2017
FY Kenya Government securities 79.362566b vs. 63.511079b +24.959
FY Loans and advances to customers (net) 455.880284b vs. 422.684637b +7.854%
FY Total Assets 714.312591b vs. 646.668939b +10.460
FY Customer Deposits 537.459617b vs. 499.549179b +7.589
FY Total shareholders funds 113.661138b vs. 105.965873b +7.262%
FY Loans and advances interest income 52.711906b vs. 50.818258b +3.726%
FY Government securities interest income 12.983467b vs. 12.365068b +5.001%
FY Total interest income 66.280698b vs. 63.673096b +4.095%
FY Customer deposits expense [15.464365b] vs. [13.615312b] +13.581%
FY Total interest expenses [17.450162b] vs. [15.288323b] +14.140%
FY Net interest income/ [Loss] 48.830536b vs. 48.384773b +0.921%
FY Fees and commissions on loans and advances 7.441206b vs. 5.595408b +32.988%
FY Other fees and commissions 6.797540b vs. 9.099026b -25.294%
FY FX trading income 4.374312b vs. 4.665498b -6.241%
FY Other income 4.360140b vs. 3.640515b +19.767%
FY Total other operating income 22.973563b vs. 23.000810b -0.118%
FY Total operating income 71.804099b vs. 71.385582b +0.586%
FY Staff costs [17.007482b] vs. [19.146769b] -11.173%
FY Other operating expenses [13.245599b] vs. [12.503115b] +5.938%
FY Total other operating expenses [37.945263b] vs. [42.271381b] -10.234%
FY Profit before tax and exceptional items 33.858836b vs. 29.114201b +16.297%
FY Profit after tax and exceptional items 233.994970b vs. 19.705130b +21.770%
Basic and diluted EPS 7.83 vs. 6.43 +21.773%
Dividend per share 3.50 vs. 3.00 +16.667%
Total NPL and Advances 28.572777b vs. 32.371150b -11.734%
Net NPL and Advances 14.192184b vs. 12.020472b +18.067%
@KCBGroup tweets
Our focus on customers, as well as our diversified business model & strong risk discipline helped us to produce another solid year of financial performance in 2018, @JoshuaOigara KCBFYResults2018
https://twitter.com/KCBGroup/status/1103166752937181190
We have 258 branches with 6,220 staff across the region, making us one of the largest corporate employers, & serving 17.4 million customers @JoshuaOigara KCBFYResults2018
https://twitter.com/KCBGroup/status/1103157911663058944
An overview of the markets we operate in (Tanzania, Uganda, Rwanda, South Sudan & Burundi) KCBFYResults2018 @KCBGroup
https://twitter.com/KCBGroup/status/1103159305006706688
Mobile remains a key channel for us. Over 88% of all KCB transactions are performed outside the branch with a 27% growth in non branch revenue to over Sh5.2 Billion @JoshuaOigara KCBFYResults2018
https://twitter.com/KCBGroup/status/1103161317370855425
Total loans disbursed on mobile were up 84% to KShs 54.4 billion propelled by the installed capacity of our digital banking platform, effectively tripling monthly loan disbursements @JoshuaOigara KCBFYResults2018
https://twitter.com/KCBGroup/status/1103161450082783233
Assets surged 10% to KShs. 714.3 billion, driven by net loans and advances, which were up 8% to Kshs.455.9 billion. KCBFYResults2018
https://twitter.com/KCBGroup/status/1103163574225113089
Sustained revenue growth and prudent cost management helped raise KCB Group PLC full year 2018 net profit by 22% to a record KShs. 24.0 billion KCBFYResults2018
https://twitter.com/KCBGroup/status/1103165737617764353
Commentary
2018 GROUP HIGHLIGHTS
TANZANIA
Strong growth in the domestic demand and expansion of credit, especially to households trade and manufacturing.
Expectations is high on the major national projects on the SGR and the facilitation of improved access to modern energy services
A favourable monetary policy in 2018 with BOT slashing its discount rates from 9% to 7%
UGANDA
Robust activity in the manufacturing, oil and mining sectors expected to drive growth over 6% in 2019
Growing fiscal deficit driven largely by public infrastructure investment
Favourable weather conditions are key to the largely agricultural economy
RWANDA
Sustained 7% growth over the last decade
Primary drivers of the economy diversifying to service, trade and ICT, over and above the mainstay, Agriculture
Made in Rwanda initiatives and international conferences boosting tourism and inflow of foreign currency
SOUTH SUDAN
Improved economic conditions following the signing of the peace agreement
Reduced internal conflicts and a moderate improvement in the oil prices supporting the growth of the economy
Oil production is expected to recover fully in 2019 boosting the inflow of foreign currency into the economy
BURUNDI
Moderate recovery of the predominantly agricultural economy
Annual GDP growth improving from to 0.5% in 2017 to 2.8%
Positive outlook after the referendum held in 2018
Opportunities in mining and the hydropower capacity
The Directors have resolved to recommend a final dividend of Shs.2.50 per ordinary share of the company having paid an interim dividend of Shs. 1.00 per ordinary share of the company on 30 November, 2018. Subject to the shareholders approval, the final dividend will be payable to the members of the company on the register at the close of business on Monday, 29 April, 2019. If approved, the full dividend per ordinary share for the year ended 31 December, 2018 will be Shs.3.50.
Message from the Directors
The above Statement of Financial Position and Statement of Comprehensive Income are extracts from the Groups, Banks and companys financial statements which have been audited by KPMG Kenya and received an unqualified opinion. The complete set of audited financial statements, statutory and qualitative disclosures can be accessed on the institutions website www.kcbgroup.com. They may also be accessed on the institutions head office located at Kencom House, Moi Avenue, Nairobi.
Conclusions
It remains a singular East African Francise
The PE Ratio is 5.389. Thats a steep discount.
The Price as room for a meaningful 15% 20% advance
H1 2018 Group Earnings through 30th June 2018 versus through 30th June 2017
H1 Loans and Advances to Customers [net] 421.508507b versus 406.975972b +3.57%
H1 Total Assets 667.681636b versus 630.608038b +5.879%
H1 Customer Deposits 524.938523b versus 482.844611b
H1 Interest Income 32.219618b versus 30.363494b
H1 Net Interest Income 24.145464b versus 23.149161b
H1 Total Non interest income 11.479770b versus 11.487716b
H1 Total Operating Income 35.625234b versus 34.636877b
H1 Loan Loss Provision 827.684m versus 2.012647b -58.87%
H1 Staff Costs 8.599757b versus 9.085443b -5.34%
H1 Total Operating Expenses 6.833934b versus 6.529052b +4.66%
H1 Profit before Tax 17.095226b versus 14.752082b +15.88%
H1 Profit after Tax 12.111360b versus 10.260882b +18.034%
H1 EPS 3.95 versus 3.345 +18.086%
Interim Dividend 1 shilling a share
Our subsidiaries have shown tremendous improvements 25% PBT growth in the first half of 2018 & we are upbeat that this will continue in the second half of the year @kiambi_k #KCB2018HYResults
https://twitter.com/KCBGroup/status/1029960197865910272
Operating expenses Declined 7% to KShs.18.5 billion from KShs.19.9 billion attributable to improved staff costs and loan loss provisioning. @kiambi_k #KCB2018HYResults
https://twitter.com/KCBGroup/status/1029958150257037312
Conclusions
Played good defence. Staff costs -5.34% year on year. Loan Loss -58.87%
KCB Group PLC FY 2018 results through 31st December 2017 vs. 31st December 2016
FY Kenya Government securities available for sale 63.511079b vs. 58.466646b +8.628%
FY Loans and advances to customers (net) 422.684637b vs. 385.745331b +9.576%
FY Total Assets 646.668939b vs. 595.239643b +8.640%
FY Customer Deposits 499.549179b vs. 448.173797b +11.463%
FY Total shareholders funds 105.965873b vs. 96.565775b +9.734%
FY Total interest income 63.673096b vs. 62.806074 +1.380%
FY Total interest expenses [15.288323b] vs. [15.779430b] -3.112%
FY FX trading income 4.665498b vs. 5.493696b -15.075%
FY Other fees and commissions 9.099026b vs. 6.064473b +50.038%
FY Total other operating income 23.000810b vs. 22.450006b +2.453%
FY Total operating income 71.385583b vs. 69.476650b +2.744%
FY Loan loss provision [5.914321b] vs. [3.823759b] -54.673%
FT Staff costs [19.146769b] vs. [17.719037b] +8.058%
FY Total other operating expenses [42.271381b] vs. [40.385525b] -4.670%
FY Profit before tax and exceptional items 29.114202b vs. 29.091125b +0.079%
FY Profit [loss] after tax and exceptional items 19.705131b vs. 19.722447b -0.088%
Basic and diluted EPS 6.43 vs. 6.43
Dividend per share 3.00 vs. 3.00
Total NPL and Advances 32.371150b vs. 27.202975b +18.999%
Net NPL and Advances 12.020472b vs. 10.742891b +11.892%
Liquidity ratio 29.0% vs. 37.5% -8.500%
Heres an overview of the Key Financial Ratios in 2017 #KCB2017FYResults
https://twitter.com/KCBGroup/status/971624206499753984
The board has recommended a dividend of Sh2 per share subject to approval at the AGM to be held on 27th April 2018 @Kiambi_K #KCB2017FYResults
https://twitter.com/KCBGroup/status/971624767760551936
By December 2017, KCB had over 13 million mobile customers and had disbursed over KShs. 30billion in loans through the platform @JoshuaOigara #KCB2017FYResults
https://twitter.com/KCBGroup/status/971619567834460160
By December 2017, KCB had over 13 million mobile customers and had disbursed over KShs. 30billion in loans through the platform. We had a 500% growth on the KCB App @JoshuaOigara #KCB2017FYResults
Conclusions
The Dividend is going to keep Investors juiced up.
Other Fees and Commissions at +50.038% is a Stand Out
Increased their Loan book +9.576%
Its a strong Franchise
H1 Kenya Government securities 68.842956b vs. 37.489753b +83.631%
H1 Loans and advances to customers (net) 406.975972b vs. 348.696017b +16.714%
H1 Total Assets 630.608039b vs. 610.206922b +3.343%
H1 Customer deposits 482.844611b vs. 476.519563b +1.327%
H1 Total shareholders funds 98.331261b vs. 96.457912b -1.942%
H1 Net interest income [loss] 23.149161b vs. 22.501386b +2.879%
H1 Fees and commissions on loans and advances 3.114491b vs. 2.422431b +28.569%
H1 Other fees and commissions 4.095367b vs. 3.881593b +5.507%
H1 Foreign exchange trading income 2.644696b vs. 2.566870b +3.032%
H1 Total non interest income 11.487716b vs. 11.208009b +2.496%
H1 Total operating income 34.636877b vs. 33.709395b +2.751%
H1 Loan loss provision [2.012647b] vs. [2.061474b] -2.369%
H1 Staff costs [9.085443b] vs. [8.078478b] +12.465%
H1 Total other operating expenses [19.884795b] vs. [18.876276b] +5.343%
H1 Profit before tax and exceptional items 14.752082b vs. 14.833119b -0.546%
H1 Profit after tax and exceptional items 10.260882b vs. 10.281157b -0.197%
Diluted and Basic EPS 6.69 vs. 6.94 -3.602%
Dividends per share 1.00 vs.
Gross NPL and advances 33.248978b vs. 32.978280b +0.821%
Total NPL and advances 28.330162b vs. 28.708442b -1.318%
Net NPL and advances 9.226531b vs. 14.174766b -34.909%
Liquidity ratio 35.7% vs. 39.1% -3.400%
Pre tax profits declined by 1% yy to KES 14.8bn.
EPS declined by 3.6% yy to KES 6.69 compared to KES 6.64 in 1H16.
Net interest income increased by 2.9% yy to KES 23.1bn largely due to a 20.8% yy decline in interest expense.
The interest rate caps resulted in a 3.9% yy decline in interest income but this was more than made up by the decline in interest expenses (20.8% yy).
Group loan book grew by 16.7% yy to KES 407.0bn largely driven by a 19% yy loan book growth in Kenya. The Kenyan Bank took advantage of the interest rate caps to lend to the low risk segments. The corporate segment, mortgage loans and consumer segment (consists mostly of payroll lending to government employees) accounted for 95% of the new loans disbursed between 1H16 and 1H17.
Customer deposits grew by 1.3% yy to KES 482.8bn. Notably, on a qq basis customer deposits grew by 5.7%.
Non funded income increased by 2.5% yy to KES 11.5bn. Notably, there was a 28.6 yy increase in fees and commissions on loans and advances and a 5.5% yy increase in other fees and commission. This was to a large extent offset by a 30.1% yy decline in other income.
Loan loss provisions declined by 2.4% yy to KES 2.0bn. The bank opted to cut provisioning following an improvement in the NPL ratio from 8.6% in 1H16 to 8.1% in 1H17. The IFRS NPL coverage also improved from 39% in 1H16 to 44% in 1H17.
Cost to income ratio increased to 51.5% from 49.9% in 1H16. This was mainly attributed to a 12% yy increase in staff costs to KES 9.1bn possibly as a result of the staff restructuring exercise that the bank is currently undergoing.
An interim dividend of KES 1.00 per share was announced compared to no interim dividend in 1H16.
Conclusions
Well played in a difficult operating environment.
KCB Group PLC FY 2016 Results through 31st December 2016 vs. 31st December 2015
Kenya Government securities 58.466646b vs. 33.827214b +72.839%
Loans and advances to customers (net) 385.745331b vs. 345.968686b +11.497%
Total Assets 595.239643b vs. 558.094154b +6.656%
Customer deposits 448.173797b vs. 424.390833b +5.604%
Total shareholders funds 96.565774b vs. 81.253607b +18.845%
FY Loans and advances to customers interest income 51.208848b vs. 46.191995b +10.861%
FY Government securities interest income 10.866513b vs. 9.117249b +19.186%
FY Total interest income 62.806075b vs. 56.383933b +11.390%
FY Customer deposits expense [14.481365b] vs. [15.295887b] -5.325%
FY Total interest expenses [15.779430b] vs. [17.147978b] -7.981%
FY Net interest income [loss] 47.026645b vs. 39.235954b +19.856%
FY Fees and commissions on loans and advances income 6.560093b vs. 5.366204b +22.248%
FY Foreign exchange trading income 5.493696b vs. 4.067466b +35.064%
FY Other income 4.331744b vs. 5.151946b -19.920%
FY Total other operating income 22.450006b vs. 23.380514b -3.980%
FY Total operating income 69.476650b vs. 62.616468b +10.956%
FY Loan loss provision [3.823759b] vs. [4.713807b] -18.882%
FY Staff costs [17.719037b] vs. [15.310898b] +15.728%
FY Other operating expenses [14.978945b] vs. [11.738084b] +27.610%
FY Total operating expenses [40.385525b] vs. [36.078896b] +11.937%
FY Profit [loss] before tax and exceptional items 29.091125 vs. 26.537573b +9.622%
FY Profit [loss] after tax and exceptional items 19.722447b vs. 19.623071b +0.506%
FY Gains [losses] from translating the financial statements of foreign operations [6.154131b] vs. 317.968m
EPS (Diluted and basic) 6.46 vs. 6.49 -0.462%
Dividend per share 3.00 vs. 2.00 +50.00%
Net NPL and Advances 10.742891b vs. 8.874656b +21.051%
Liquidity ratio 37.5% vs. 48.3% -10.800%
No. Of Shares Outstanding : 3,066,056,647
A selection of @KCBGroup Tweets from the FY 16 Earnings release
KCB Groups Profit Before Tax for year ended December 31st 2016 was up by 10% to KShs. 29.1B. from KShs. 26.5B #KCB2016FYResults
A brief summary of the key financial ratios for KCB Bank Kenya and KCB Group #KCB2016FYResults
https://twitter.com/KCBGroup/status/839706695580454913
Customer deposits increased 6% from KShs. 424.4B to KShs.448.2B with 65% being demand deposits
Total Assets improved by 7% from Sh 558B to Sh595.2B While Net Loans & Advances were up 11% from Sh346B to Sh385.7B
Currently, non branch channel systems Mbenki, KCB M PESA, Mobi and payments account for 77% of total KCB transactions
KCB has acquired over 10M customers on its mobile platform either directly or through partnerships over the past 5 years #KCB2016FYResults
Contribution of the int. business dropped to less than 5% due to the devaluation of the S.Sudan Pound @kiambi_k #KCB2016FYResults
https://twitter.com/KCBGroup/status/839705930757439489
Net interest income was up 20% to sh47B from Sh39.3B with Forex income also up by 35% to Sh5.5B up from Sh4.1B @kiambi_k #KCB2016FYResults
https://twitter.com/KCBGroup/status/839705603396227073
KCB Groups outlook for 2017 Which includes a stronger international business performance & growing non interest revenue #KCB2016FYResults
https://twitter.com/KCBGroup/status/839707595904532481
90% of KCB Bank loans are processed on Mobile, with 53% of customer interactions being on mobile @JoshuaOigara #KCB2016FYResults
https://twitter.com/KCBGroup/status/839710887510478848
A closer look on the impact of the Interest Rate Cap for KCB Bank Loans & advances and customer deposits increased #KCB2016FYResults
https://twitter.com/KCBGroup/status/839701893693771777
Conclusions
These were strong results especially when you consider that [6.154131b] was taken re [losses] from translating the financial statements of foreign operations South Sudan
A 3 shilling Final dividend is worth 11.11% on yesterdays closing price.
its a Darwinian Banking sector and KCB is one of the fittest
H1 Group Total Assets 559.941978b versus 566.609777b -1.17%
H1 Loans and advances income 25.732594b vs. 21.110584b 21.894%
H1 Government securities income 5.563276b vs. 4.571810b 21.687%
H1 Total income interest 31.637625b vs. 25.853935b 22.371%
H1 Customer deposits expense [8.374979b] vs. [5.879798b] 42.437%
H1 Total interest expeses [9.108512b] vs. [6.407812b] 42.147%
H1 Net interest income [loss] 22.529113b vs. 19.446123b 15.854%
H1 Foreign exchange trading income 1.575932b vs. 2.013736b -21.741%
H1 Total non interest income 10.400150b vs. 11.268710b -7.708%
H1 Total operating income 32.929263b vs. 30.714833b 7.210%
H1 Loan loss provision [2.071274b] vs. [2.593397b] -20.133%
H1 Total other operating expenses [17.834261b] vs. [17.512381b] 1.838%
H1 Profit [loss] before tax and exceptional items 15.095002b vs. 13.202452b 14.335%
H1 Profit after tax and exceptional items 10.500253b vs. 9.241716b 13.618%
EPS 6.94 vs. 6.11 13.584%
Total NPL and advances 28.708442b vs. 20.863370b 37.602%
Net NPL and advances 14.174766b vs. 10.966571b 29.254%
Liquidity ratio 41.8% vs. 47.9% -6.1%
No interim dividend
Profit Before Tax: Up 14% from KShs. 13.2Billion to Kshs.15.1Billion(Kenya up 19%) KCB2016HYResults
https://twitter.com/KCBGroup/status/761075371722706945
From the accompanying commentary
The period has been a fantastic story of resilience and dynamism across the markets. The business benefitted from drawing synergies across the Group to sustain a strong momentum despite a tough operating environment across markets mainly in Burundi, Uganda and South Sudan, said Mr Biwott
We believe the future of banking is in digital. We are reimagining digital financial services to complement the traditional brick and mortar model that was in yesteryears the hallmark of banking. We have continually rejigged our digital strategy to align it with the global direction of flight as far as technology is concerned, said Mr Oigara
Conclusions
Total Assets declined -1.17% due to SS currency devaluation.
cost to income 47.9% versus 48.6%
There is some confusion around the provisioning. At a Group Level KCB reduced Total Provisions [because of a previous extreme South Sudan provision] but at the Kenya Level Provisions were increased.
Therefore, given some regional challenges serving up +14.335% PBT is seriously commendable.
I attended the Earnings release this morning at the Hilton Nairobi and herewith a selection of Tweets
A Brief overview of the Key Financial Ratios. The Return on Equity stands at 24.4% #KCB2016HYResults
https://twitter.com/KCBGroup/status/761077719899615232
@KCBGroup Kenya +19% and Group +14% Profit before Tax #KCB2016HYresults @NSEKenya
https://twitter.com/alykhansatchu/status/761075717698260992
@KCBGroup Rights issue rescheduled We are seeing strong cash generation @JoshuaOigara #KCB2016HYResults
https://twitter.com/alykhansatchu/status/761070710093516800
We have over 6.5M customers on #KCBMpesa with over sh11B worth of loans disbursed" @JoshuaOigara #kcb2016hyresults
https://twitter.com/KCBGroup/status/761070534616494080
Our Job is now done says @JoshuaOigara @KCBGroup of @chasebankkenya #KCB2016HYresults @KPMG @CbkKenya and @KDICkenya to take over.
https://twitter.com/alykhansatchu/status/761068811281772546
.@KCBGroup has 3b Kenya Shillings equivalent lent out in South Sudan says @JoshuaOigara 97% transactional
https://twitter.com/alykhansatchu/status/761068811281772546
There has been a 47% growth in channel revenue with 78% of all transactions outside the branch #Kcb2016hyresults
https://twitter.com/KCBGroup/status/761070937567481860
Chairman Ngeny Biwott @KCBGroup #KCB2016HYresults Insider lending to Board is 17m shilling @NSEKenya @JoshuaOigara
https://twitter.com/alykhansatchu/status/761080455768576000
#KCB2016HYResults Kenya Provisioning +22% @KCBGroup -20% (south Sudan related big provision previously)
https://twitter.com/alykhansatchu/status/761093937859694592
KCB Group FY 2015 results through 31st December 2015 vs. 31st December 2014
FY Loans and advances to customers 345.968686b vs. 283.732205b +21.935%
FY Customer deposits 424.390833b vs. 377.271886b +12.489%
FY Loans and advances income 46.191995b vs. 36.574907b +18.764%
FY Total interest income 56.383933b vs. 47.475715b +18.764%
FY Customer deposit expense [15.295887b] vs. [10.633005b] +43.853%
FY Total interest expense [17.147978b] vs. [11.527020b] +48.763%
FY Net interest income [loss] 39.235954b vs. 35.948695b +9.144%
FY Fees and commission on loans and advances 5.366204b vs. 4.635350b
+15.767%
FY Other fees & commission 8.793785b vs. 8.103867b +8.513%
FY Foreign exchange trading income 4.067466b vs. 4.149902b -1.986%
FY Total other operating income 23.380514b vs. 22.001159b +6.269%
FY Total operating income 62.616468b vs. 57.949854b +8.053%
FY Staff costs [15.310898b] vs. [13.993445b] +9.415%
FY Other operating expenses [11.738084b] vs. [11.079231b] +5.947%
FY Loan loss provision [4.713807b] vs. [5.058270b] -6.810%
FY Total other operating expenses [36.078896b] vs. [34.162425b] +5.610%
Profit before tax and exceptional items 26.537573b vs. 23.787429b +11.
561%
Profit after tax and exceptional items 19.623071b vs. 16.848863b +16.465%
EPS 6.49 vs. 5.63 +15.275%
FY Dividend 2 shillings a share unchanged [Part Cash Part Scrip]
Liquidity ratio 48.3% vs. 43.7% +4.600%
AlyKhan Satchu This is the Age of Algorithm Banking @KCBGroup CEO @JoshuaOigara
pic.twitter.com/T0xVf6alh1
.@JoshuaOigara @KCBGroup CEO #KCBfyresults2015 There are days we transact a million transactions @nsekenya
pic.twitter.com/UAUyghUckI
@KCBGroup 2015 achievements
pic.twitter.com/oNmDcs9nbq
$90m disbursed on mobile repayment of 98.5% @JoshuaOigara @KCBGroup this is the model we want to take #Ethiopia
pic.twitter.com/NePhzAohnY
From KCB Investor Relations PDF
31b in Agency transactions versus 14b in 2014
Agency Transactions +134%
Mobile Banking Transactions +98%
Mobile Loan Applications 3,527,074 in 2015 versus 150,531 in 2014
International Credit Rating at par with the sovereign Rating
Surpassing 10m Customers across KCB Group
Entry into Ethiopia via Representative office
18% Balance sheet contribution from our Subsidiaries
Total Assets South Sudan 6% [versus 14%] Rwanda 3% Tanzania 4% Uganda 4% Burundi 1%
Total Assets 2015 Kenya 82% [75% in 2014] IBs 18% [25% IN 2014]
Kenya 88% of Profits South Sudan 8% [versus 6%] Rwanda 2% Uganda 2%
Cost to income now 50.1%
Conclusions
Strong numbers. Mobile is showing an exponential Trajectory.
This is a solid Bank.
First Half Results through 30th June 2015 versus through 30th June 2014
Total Assets 566.609777b versus 490.338324b +15.555%
Loans and Advances [net] to Customers 320.600852b versus 283.732b +12.99%
First Half Total Interest Income 25.853935b versus 22.409295b
First Half Net Interest Income 19.446123b versus 17.133787b
First Half total Non Interest Income 11.268710b versus 10.389232b
First Half Total Operating Income 30.714833b versus 27.523019b
Total Operating Expenses 17.512381b versus 15.848970b
First Half Profit before Tax 13.202452b versus 11.674049b +13.092%
First Half Profit after Tax 9.241716b versus 8.171834b +13.09%
@KCBGroup Overall contribution of our subsidiaries to the Group has moved from 7.5% to 10% @JoshuaOigara #KCB2015HYResults
https://twitter.com/KCBGroup/status/626714343258898432
@KCBGroup we have a long Pan-African agenda beyond the markets we are operating in today @JoshuaOigara #KCB2015HYResults
https://twitter.com/KCBGroup/status/626712985575235585
@KCBGroup We want to be the future today, investing in the digital platform is key @JoshuaOigara #KCB2015HYResults
https://twitter.com/KCBGroup/status/626635925888606208
KCB Bank Group An overview of the distribution of the Profit Before Tax across the Group
https://twitter.com/KCBGroup/status/626624103324221440
@KCBGroup 7h7 hours ago #KCBMpesa had over 2 Million customers disbursing over Ksh. 2B in loans @JoshuaOigara #KCB2015HYResults
https://twitter.com/KCBGroup/status/626620036258615296
Conclusions
These are strong results plain and simple.
Kenya Commercial Bank Full Year Earnings through 31st Dec 2014 versus through 31st Dec 2013
Full Year Total Assets 490.338324b versus 390.851579b +25.45%
Full Year Loans and Advances Net to Customers 283.732205b versus 227.721781b +24.595%
Full Year Total Interest Income 47.475715b versus 41.613398b
Full Year Total Interest Expense 11.527020b versus 8.629112b
Full Year Net Interest Income 35.948695b versus 32.984286b
Full Year Total other operating Income 22.001159b versus 17.125978b
Full Year Total Operating Income 57.949854b versus 50.110664b
Full Year Loan Loss Provision 5.058270b versus 2.905975b
Full Year Staff Costs 13.993445b versus 13.469901b
Full Year Total Operating Expenses 34.162425b versus 29.986505b
Full Year Profit before Tax 23.787429 versus 20.123759b +18.205%
Full Year Profit after Tax 16.848862b versus 14.341382b +17.484%
Full Year Earnings Per Share 5.63 versus 4.82 +16.804%
Full Year Dividend unchanged at 2.00 - conserving cash
.@KCBGroup FY 2014 Earnings Release
https://rich.co.ke/media/docs/KCB%20END%20YEAR%20RESULTS%202014.pdf
26-FEB-2015 :: FY14 Investor Presentation
https://rich.co.ke/media/docs/FY14%20Investor%20Presentation%20Final%2025022015.pdf
54M transactions (31.5M on alternative channels) valued at KShs. 7.8T, being 1.5 Times Kenyas GDP
Customer numbers up 65% to 4.14M Agency Outlets up 66% to 10,102 Branches up 2% to 242
KCB Insurance Over 300% Growth
NPL has reduced significantly year on year 2013- 2014 from 8.1% to 6.3%
Kenya 81.2% of Total Revenue contribution
Cost to Income 50.2%
New Market consideration to Eastern DRC, Ethiopia and Somalia
26 FEB 2015 :: Cautionary Statement
https://rich.co.ke/media/docs/KCB%20Cautionary%20Statement.pdf
A Selection of Tweets from the Earnings Release today
@alykhansatchu The Future is Mobile and Agency Banking says @JoshuaOigara @KCBGroup #KCB2014FYResults
pic.twitter.com/MbNqpyuQIY
@alykhansatchu We do not live in Past we live in the present #KCB2014FYResults if you are going to dream Dream big @JoshuaOigara
pic.twitter.com/zDGEK4g2EX
@alykhansatchu With Thanks for the interview to The Man of The Moment @JoshuaOigara @KCBGroup
pic.twitter.com/vdx6WjLo1s
@alykhansatchu Happy Socks @JoshuaOigara @KCBGroup
pic.twitter.com/ipPdQ0Xr1k
@alykhansatchu Loans +25% Total Assets +100b Year on Year @JoshuaOigara we do not lack pipeline #KCB2014FYResults
pic.twitter.com/QypYMiALG9
@alykhansatchu 11m Transactions on Mobile says @JoshuaOigara #KCB2014FYResults @KCBGroup
pic.twitter.com/NA64Kes3DQ
Conclusions
The 25.45% expansion in Total Assets is a headline grabber and signals the nature of the offensive Game in 2014. These were a great set of results. Expenses were held down with Staff costs barely higher Year on Year.
Minimum Price Target is 66.00 near term [once the disappointment with the unchanged dividend wears off they are conserving cash]
My Year End Price Target is 90.00.
First Half Earnings through 30th June 2014
Loans and Advances Net to Customers 244.014013b versus 227.721781b
H1 Total Assets 439.700996b versus 370.911015b
H1 Total Interest Income 22.409295b versus 20.570515b
H1 Other Income 1.410b versus 0.477b
H1 Total Interest Expenses 5.275508b versus 4.517285b
H1 Net Interest Income 17.133787b versus 16.053320b +7.00%
H1 Total Non Interest Income 10.389232b versus 7.943496b
H1 Total Operating Income 27.523019b versus 23.996726b
H1 Total Operating Expenses 15.848970b versus 13.900304b
H1 Profit before Tax 11.674049b versus 10.096422b +16%
H1 Profit after Tax 8.171834b versus 7.192232b
From Company Releases
Cost to Income Ratio 49.6% versus 51.00%
Total Revenue breakdown 2014
Kenya 81.6%
South Sudan 9.2%
Uganda 3.2%
Tanzania 2.7%
Rwanda 2.7%
Burundi 0.6%
A Selection of Tweets
Aly Khan Satchu @alykhansatchu Our DNA is African says @JoshuaOigara @KCBGroup #KCBHYRESULTS speaking about commitment and opportunity in region and South Sudan
Aly Khan Satchu @alykhansatchu @KCBGroup we are very keen to tap the international bond markets @JoshuaOigara #KCBHYRESULTS
Aly Khan Satchu @alykhansatchu @JoshuaOigara CEO @KCBGroup @bobcollymore @SafaricomLtd @HiltonHotels #Nairobi ahead of H12014 Earnings release
http://twitpic.com/e9810u
Conclusions
Strong results and the CEO spoke to an accelerating Q2 versus Q1 and a predicted acceleration in H2 2014.
KCB Group Full Year Earnings through 31st December 2013 versus through December 2012
Total Assets 391.479179b versus 368.428285b +6.25%
Loans and Advances Net to Customers 227.721781b versus 211.664226b +7.586%
Customer Deposits 305.659189b versus 288.037367b +6.11%
Total Interest Income 41.613398b versus 43.082218b -3.409%
Total Interest Expenses 8.269113b versus 12.445986b -33.56%
Net Interest Income 32.984288b versus 30.636232b
Total other Operating Income 17.125979b versus 15.620886b +9.6351%
Staff Costs 13.469901b versus 11.861196b +13.562%
Total other operating Expenses 29.986505b versus 29.048975b
Full Year Profit Before Tax 20.123769b versus 17.208143b +16.94%
Full Year Profit After Tax 14.341382b versus 12.203631b +17.517%
FY Earnings Per Share 4.82 versus 4.11 +17.274%
Full Year Dividend 2.00 versus 1.90 +5.26%
From KCB Press Release
Thursday 27th February, 2014
Press Release
KCB GROUP HITS KShs 20.1 BILLION PROFIT MARK
International Businesses: Up 60% from KShs 1.5bn to KShs 2.4bn
KCB Group reported a profit before tax of KShs 20.1bn for the year to 31st December, 2013. This reflects a 17% increase from KShs 17.2bn to KShs 20.1bn.
The International Business demonstrated marked improvement with a strong performance of 60% pre tax profit growth year on year from KShs 1.5bn in December 2012 to KShs 2.4bn in December, 2013, thus contributing 11.5% to the Group profit.
Since the launch, the customer numbers have now increased to nearly 3million and the projection for year end is 5million customers. We are engaging the right partners to drive this financial inclusion agenda forward in the next 12 months, said the Group CEO.
About KCB Group
KCB is East Africas largest commercial bank with total assets of KShs 391.5Billion, with capitalization standing at KShs 131Billion. The Bank is over 118 years old having started in Zanzibar in 1896. KCB Group is represented in six countries with the total number of branches at 238; in Kenya (178), South Sudan (21 three branches remain closed), Tanzania (12), Uganda (14), Rwanda (11) and Burundi (2). The expansive branch network is complemented by 955 ATMs across the region that offers 24 hour quick access services and over 6,713 KCB Group agents. The bank also offers mobile banking, internet banking, agency and Diaspora banking services platform that can be accessed on 24/7 basis.
KCB South Sudan Business update
The KCB Bank South Sudan has 21 branches present in all the states and has over 408 staff members. KCB Bank South Sudan was founded in 2005 with the opening of the first Branch in Juba. It has the following 21 branches which are Juba, Rumbek, Bor, Wau, Wau UNMIS, Nyakuron, UNMIS House, Buluk, Bentiu, Malakal, Malakia, UNMIS Malakal, Kuajok, Aweil, Nimule, Yei, UNMIS Juba, Bilpam, Rock City, Yambio and Torit. Following the political unrest in the Republic of South Sudan that started in December 2013, KCB Bank South Sudan has temporarily closed three branches due to the on going fighting. The remaining 18 branches are operational and customers can access our services within the country on the one-branch banking platform. Customers with dollar accounts can also transact across the markets in which we operate in Kenya, Tanzania, Uganda, Rwanda and Burundi.
Twitpics from the FY Earnings Release at the Hilton this morning
.@JoshuaOigara @KCBGroup CEO we are c21st Collaborators
http://www.twitpic.com/dwrq72
Conclusions
Strong Results on par with the Q3 Earnings Trajectory.
The International Business continues to be a Bull Outlier with a 60% Pre Tax Acceleration.
Some might be disappointed with the Dividend increased of 5.26% which equates to a Step Down in the Dividend Pay Out Ratio from 46.22% to 41.493% but I think that speaks to a desire to deploy more cash in the Business which is a constructive signal.
They were confident about South Sudan.
Q3 2013 Earnings versus Q3 2012
Total Assets 385.209575b versus 371.629287b +3.654%
Loans and Advances Net to Customers 225.688646b versus 208.987845b +7.99%
Q3 PBT 15.168913b versus 13.010394b +15.87%
Q3 PAT 10.816637b versus 9.370620b +15.431%
From @KCBGroup Q3 2013 Investor Briefing
https://rich.co.ke/media/docs/Q3%202013-INVESTOR%20PRESENTATION.pdf
Cost in 2013 includes a one off restructuring cost
CIR including restructuring cost is 55.4% (June 2013-54.6%)
Market share Ratios
Kenya 14%
Tanzania 3%
Uganda 3%
Rwanda 7%
Burundi 0.3%
South Sudan 42%
South Sudan responsible for 9% of PBT Kenya 89.3%
Loans edged up 1% from 58% to 59% as a % of the Balance Sheet.
H1 2013 Earnings through June 2013 versus June 2012
Total Assets 370.911015b versus 349.275693b
H1 Total Operating Income 23.996726b versus 21.900088b
Total and Other Operating Expenses 13.900304b versus 13.396280b
H1 PBT 10.096422b versus 8.503808b +18.728%
H1 PAT 7.192232b versus 6.086014b +18.176%
H1 EPS 2.41 versus 2.05 +17.5609%
Company Commentary
International Business PBT Up 72% from KShs 0.6Billion to KShs 1.1Billion
Net Interest Income Up 12% from KShs. 14.3Billion to KShs. 16.1Billion
Fees and Commission Up 9% from KShs. 4.6Billion to KShs 5.0Billion
Total Operating Expenses Up 6% from KShs. 11.9Billion to KShs 12.7Billion
Total Assets Up 6% from KShs. 349Billion to KShs. 371Billion
Net Loans & Advances up 6% from KShs 202Billion to KShs 214Billion
Customer Deposits up 3% from KShs 279Billion to KShs 288Billion
Cost to Income Ratio Lower by 180bps from 56.4% to 54.6%.
Return on Assets up 30bps from 3.6% to 3.9%
Return on Equity down 40bps from 26.8% to 26.4%
A clear sign of the Groups improving efficiency was a reduction in its cost to income ratio from 56.4% in June 2012 to 54.6% this year.
We are beginning to benefit from our investment in cost transformation initiatives that ensure high operational efficiency. We believe we can bring this ratio down to below 54% by year end as we streamline further our operations, said the Group CEO.
The Group CEO said that the Groups international business registered a strong performance of 72% growth from KShs. 0.6Billion in June 2012 to KShs. 1.1Billion in June 2013, contributing 11% to the Group profit.
I attended the Earnings Release and have included some comments of my own
Joshua Oigara spoke of KCB Group always being an early Innovator
characterised this period as one of disruptive change
Without the Restructuring charge Cost to income Ratio would be 51% versus 54.6%
Conclusions
Plenty to like in these numbers. The International Business Performance at +72% speaks to the Accelerating Trend in the EAC and KCBs alignment with the EAC.
Cost to Income ratio would have been 51% without the Restructuring Charge.
I expect new all time highs in the price
FY Earnings through December 2012 versus FY through December 2011
Total Assets 367.379285b versus 330.716159b +11.085976%
Loans and Advances Net to Customers 221.664226b versus 198.724919b +11.5432%
Kenya Government Securities 51.095443b versus 34.023364b +50.1775%
Customer Deposits 288.037367b versus 259.308849b +11.0788%
Total Interest Income 43.082218b versus 28.501387b +51.1583%
Total Interest Expenses 12.445986b versus 4.616241b +169.613%
Net Interest Income 30.636232b versus 23.885146b +28.264788%
Total Non Interest Income 15.620886b versus 16.022665b -2.5075%
Total Operating Income 46.257118b versus 39.907811b +15.9099%
Loan Loss Provision 3.756642b versus 2.494817b
Staff Costs 11.861196b versus 10.883679b +8.981%
Other Operating Expenses 9.806346b versus 8.059485b
Total Operating Expenses 29.048975b versus 24.778437b
FY PBT 17.208143b versus 15.129374b +13.7399%
FY PAT 12.203531b versus 10.981046b +11.13268%
FY EPS 4.11 versus 3.72 +10.48387%
FY Dividend 1.90 versus 1.85
Dividend is worth 4.967% of Yield
Commentary
Branches Number
KCB Kenya 173 Branches
KCB Tanzania 11
KCB Sudan 20
KCB Uganda 14
KCB Rwanda 11
KCB Burundi 1
Group Total 230
Cost to income ratio Lower by 290bps (Basis Points) from 60.3% to 57.4%
The Group Chairman also noted that the International Businesses (Tanzania, South Sudan, Uganda, Rwanda and Burundi) reported a 39% growth in profit from KShs1.0 Billion in 2011 to KShs1.4 Billion in 2012
Commenting on the results, the Group CEO, Joshua Oigara, said the bank will continue to leverage growth in regional economies, the East African Integration and new economic frontiers, innovation in technology driven products, championing financial inclusion, support entrepreneurship development for our youth, leverage on our people skills to thrive in the competitive banking landscape, he added.
A Rather Glamourous Unveiling of the Full Year Results by @KCBGroup Chairman Musa Ndeto
http://www.twitpic.com/c7hozr
The Chairman's Statement Musa Ndeto @KCBGroup
https://rich.co.ke/media/docs/Chairman%20Statement%20Full%20Year%20Results%202012.pdf
Q412 INVESTOR MEDIA PRESENTATION @KCBGroup
https://rich.co.ke/media/docs/Q412%20INVESTOR%20%20%20MEDIA%20PRESENTATION.pdf
The Full Year Press Release @KCBGroup FY 2012 Results here
https://rich.co.ke/media/docs/Press%20Release%20Full%20Year%202012.pdf
Thanks @JoshuaOigara @KCBGroup CEO for the Interview Twitpic
http://www.twitpic.com/c7hq38
Conclusions
There was a Steep Step Down Q4 versus Q3 and that was because There was a One Off 2.3b Shilling Recovery in Q4 2011. Stripping that Out The Underlying Growth Rate was 30%.
The Regional Businesses continue to show good Year on Year Acceleration and in fact the Year on Year Advance would have been even faster but for a Fraud [insured and fully recoverable] which the Accountants insisted was provisioned for.
I think KCB under the Leadership of CEO Joshua Oigara and with 230 Branches across The Region is in Prime Position to ride what Joshua calls a Region which is at the Epicentre of Growth.
Agency and Mobile Banking made a Strong Advance.
The Growth Trajectory is steeper than the Results.
KCB Group Q3 Results 2012 versus Q3 2011
Total Interest Income 31.366262b versus 19.013054b
Total Interest Expenses 9.663702b versus 2.408636b
Net Interest Income 21.702560b versus 16.604418b
Foreign Exchange Trading Income 2.863218b versus 2.247614b
Total Non Interest Income 11.474765b versus 10.282880b
Total Operating Income 33.177325b versus 26.887298b +23.394%
Loan Loss Provision 2.054843b versus 1.407461b
Staff Costs 8.726496b versus 8.648319b +0.9039%
Other Operating Expenses 6.695695b versus 5.469802b +22.412%
Total Operating Expenses 20.166931b versus 17.776867b +13.44479%
Profit Before Tax 13.010394b versus 9.110431b [versus 15.129374b FY] +42.807667% [versus +48.18% H1 537 Basis Points step down H2 versus Q3]
Profit After Tax 9.370620b versus 6.432988b [versus 10.981046b FY] +45.665%
Earnings Per Share 4.21 versus 2.91 versus [3.72 previous FY] +44.6735%
Kenya Government Securities 49.266065b versus 35.922637b
Kenya Government Securities held for Dealing Purposes 2.583845b versus 0.411585b
Loans and Advances Net to Customers 208.987845b versus 193.888733 [was 198.724919b End Dec 2011]
Investment Securities 14.277164b versus 7.952637b
Total Assets 371.629287b versus 322.462058b
Customer Deposits 296.234122b versus 252.388364b
Total Liabilities 321.506416b versus 281.450967b
Non Performing Loans 14.480042b versus 15.878326b
Net Non Performing Loans And Advances 0
Company Commentary
Customer Deposits Up 17% from KShs 252.5Billion to KShs 296.2Billion
Total Assets Up 15% from KShs 322.5Billion to KShs 371.6Billion
Cost to income ratio Lower by 600bps (Basis Points) from 62.6% to 56.6%
Net Interest Income Up 31% from KShs 16.6Billion to KShs 21.7Billion
International Business PBT: Up 70% from KShs 0.53Billion to KShs 0.90Billion
Shareholder Equity Up 22% from KShs 41.0Billion to KShs 50.1Billion
KCB Group continued to maintain its growth momentum for 2012 reporting a 43% increase in pretax profits for the first nine months of the year.
The KCB Group Chairman, Eng. Musa Ndeto, released the banks unaudited results for Quarter 3 that showed profit before tax of KShs 13.01Billion up from KShs 9.1Billion for the same period last year.
We are delighted to announce a steady performance in our trading results that generally reflects the momentum we have witnessed in the business attributed to our transformation agenda that has continued to spur strong performance, he said.
The Group Chairman also noted that the International Businesses (Tanzania, South Sudan, Uganda, Rwanda and Burundi) registered a 70% growth in profit from KShs 0.53Billion in September, 2011 to KShs 0.90Billion in September, 2012. This is attributed to growth in customer numbers, increased business volumes and a favourable macro economic outlook in the markets in which we operate.
Notably, cost to income ratio is now lower by 600bps to stand at 56.6% in September, 2012 in comparison to 62.6% registered last year following improved efficiencies and cost management initiatives implemented in running the business, said the Group Chairman.
The banks profitability was hinged upon a 31% growth in Net Interest Income from KShs 16.6billion in September, 2011 to KShs 21.7Billion this year. Subsequently, we witnessed a modest growth in fees and commissions from KShs 6.92Billion over the same period last year to KShs 6.96Billion in September 2012.
Conclusions
KCB has reported a Q3 PAT Acceleration of +45.665% [versus H1 2012 +49.98%] A 432 Basis Points Step Down.
KCB has reported a Q3 PBT Acceleration of +42.807667% [versus +48.18% H1 537 Basis Points step down H2 versus Q3]
Q3 Earnings Per Share +44.6735%.
That is plain muscular in the Context of a small shrinkage from Extreme NIMs seen in Q4 2011 and Q1 2012.
International Businesses registered a 70% growth in profit from KShs 0.53Billion in September, 2011 to KShs 0.90Billion in September, 2012., which confirms the Inflection Point has gained Traction and remains on a Fast Growth Curve and is noteworthy.
Cost to income ratio is now lower by 600bps to stand at 56.6% in September, 2012 in comparison to 62.6% registered last year headed in the Right Direction] and there is more to be wrung out of this Trend through Year End.
Further Conclusions
Plain Muscular and this was predicted and predictable.
Swot Analysis 6 Months through June 2012 versus 6 Months through June 2011
Kenya Government Securities 48.837454b versus 37.714299b +29.49%
Loans and Advances to Customers [Net] 202.067619b versus 175.204072b [End Dec 2011 198.724919b] +1.68% since Dec 2011
Total Assets 349.275693b versus 279.716061b
Customer Deposits 278.544999b versus 215.737886b +29.11%
Total Interest Income 20.606538b versus 11.779740b
Net Interest Income 14.309941b versus 10.532526b
Foreign Exchange Trading 1.907569b versus 1.359204b
Total Non Interest Income 7.590147b versus 6.340775b
Loan Loss Provision 1.447268b versus 0.840138b
Staff Costs 5.969962b versus 5.393593b
Total Operating Expenses 13.396280b versus 11.134483b
PBT 8.503808b versus 5.738818b +48.18%
Profit After Tax PAT 6.086014b versus 4.057716b +49.98%
Earnings Per Share 2.05 versus 1.38
Gross Performing NPLs 13.140556b versus 12.228264 End December 2011
Cash and Cash Equivalents at End of Period 48.408358b versus 14.539905b
Company Commentary
We are delighted with our half year performance, which is attributable to growth in net interest income by 36% to KShs 14.3 billion, fees and commissions of KShs 4.6 billion representing a 9% increase over the same period last year and foreign exchange revenue that increased by 40% to KShs 1.9 billion in 2012.
Our International Businesses reported excellent results, with a pre-tax profit of KShs 600 million in 2012 from KShs 300 million in 2011, reflecting 100% increase, he said.
The increase in operating costs is attributable mainly to investment in information technology and network infrastructure which is critical if we are to continue to deliver the products and quality of service that meet our customers expectations. Notable is the KCB Mobi Bank, KCB Diaspora Banking and KCB Internet Banking.
Nevertheless, there was a significant improvement on the cost to income ratio by 640 basis points (bp) from 62.8% to 56.4%. The transformation initiatives implemented to improve efficiencies and manage costs are beginning to deliver the intended benefits.
Provision for bad debts increased significantly by 72% from KShs 840 million to KShs 1.4 billion to cater for the increased credit risk following the volatility of the macro economic conditions in the first half of the year.
Customer deposits increased from KShs. 215.7 billion to KShs 278.5 billion due to aggressive marketing campaigns to mobilize additional deposits.
Oduor Otieno added Our prudential ratios remain strong and well within the Central Bank of Kenyas minimum requirements. Our total capital to risk weighted assets is at 19.2% against the CBK minimum of 12% while our liquidity ratio stands at 34.9% against a CBK minimum of 20%. Core capital to total deposit liabilities stands at 15.7% against CBK minimum of 8%.
KCB is East Africas largest bank in terms of total assets at KShs 349 billion (as at June ,2012), total number of branches at 226 spread in six countries, namely; Kenya (170), Tanzania (11), South Sudan (19), Uganda (14), Rwanda (11) and Burundi (1) as well as capital base at KShs 46.4 billion (as at June, 2012). The expansive branch network is complemented by over 900 ATMs across the region that offer 24 hour access to its Quick Serve services and over 3,000 KCB Mtaani agents. All these services can be accessed on a one branch banking network across the six countries.
Our base lending rate is now at 22% effective June, 2012 down from 24% and the mortgage lending rate is at 19%.
KCB Mobi Bank is the latest addition into the range of KCB products. It is a first in the banking sector in East Africa. This is a fast, convenient and cost effective service since mobile penetration at 74% is much higher than that of the financial services sector. It operates on Multiple delivery channels for Mobi USSD, WAP and GPRS (downloaded application to the handset). It is not limited to a particular network and is accessible worldwide. It is Flexible as one can transact airtime top up for self or others across networks, unique services such as credit card balance check and loan repayments among others. In addition it can also be used to for Money transfer services to any mobile number.
Conclusions
This is a strong H1 Earnings Release and The numbers speak for themselves.
H1 Results Release Here
https://rich.co.ke/media/docs/KCB%20-%20Half%20year%20results.pdf
Copy of Balance Sheet and Income Statement
http://j.mp/QKwNpR
Press Release
http://j.mp/MLSSC0
MEDIA PRESENTATION
http://j.mp/NLbhxM
KCB Group FY 2011 versus FY 2010 Swot Analysis
Total Assets 330.716159b versus 251.362000b +31.569%
Customer Deposits 259.308849b versus 196.974651b +31.645%
Total Operating Income 39.309082b versus 30.661387b +28.203%
Foreign Exchange Trading Income 3.607836b versus 2.775494b +29.988%
Fees and Commissions 4.981222b versus 2.696594b +84.722%
Loan Loss Provision 1.896082b versus 2.144320b
Total Operating Expenses 24.179708b versus 20.863416b +15.895%
PBT 15.129374b versus 9.797971b +54.413%
PAT 10.981046b versus 7.177973b +52.98%
Earnings per Share 3.72 versus 2.76 +34.782%
Final Dividend 1.85 versus 1.25 +48%
52wk Range: 14.60 27.00
1Yr Rtn -7.46%
Conclusions
These were very muscular Results. The Inflection in the Regional Subsidiaries Earnings Curve [Negative to Positive] is noteworthy and Regional Trade is a Rising Tide. I think it deserves to Trade towards a PE X 2011 FY of 10.00 which targets 37.2.
MEDIA SLIDES HERE
http://j.mp/xgaOTh
FY Press Release
http://j.mp/xJHDuS
The bank, which has operations in Tanzania, Rwanda, Uganda and South Sudan, said on Thursday all its regional subsidiaries turned a profit, and it would expand further by launching a new unit in Burundi next month, which would break even in two years.
We will weather the storm in 2012 and deliver good results, Chief Executive Martin Oduor Otieno told an investor briefing via Reuters
http://j.mp/yhpZyw
A Selection of Twitpics of Slides
The Chairman The CEO @OduorMartinO #KCB2011Results #Kenya Twitpic
http://www.twitpic.com/8qiks6
@OduorMartinO @KCBGroup Media Q and A at the #Hilton Twitpic
http://www.twitpic.com/8qjuwb
@KCBGroup share price compared to the ^NSE20 @BloombergNews #Kenya #Africa Twitpic
http://www.twitpic.com/8qjd0h
@KCBGROUP The Regional Footprint #Africa #Sudan #Kenya #Uganda #Tanzania #Rwanda Twitpic
http://www.twitpic.com/8qjbck
@KCBGroup @OduorMartinO #KCB2011Results
http://www.twitpic.com/8qj6oq
Swot Analysis Q3 2011 versus Q3 2010
Total Assets 322.462b versus 244.207b
Total operating Income 26.867b versus 21.896b
Profit Before Tax and Exceptional Items 9.110431b versus 6.512586b +39.889%
Profit After Tax and Exceptional Items 6.432988b versus 4.495786b +43.089%
EPS 2.91 versus 2.52 +17.33%
Swot Analysis H1 2011 versus H1 2010
Total Assets 279.716061b versus 226.149529b +23.686%
Total operating Income 16.873301b versus 13.847071b
Loan Loss Provision 0.840138b versus 1.012298b
Staff Costs 5.393593b versus 4.399223b +22.6%
Profit Before Tax and Exceptional Items 5.738818b versus 4.207152b +36.406%
Profit After Tax and Exceptional Items 4.057716b versus 2.866157b +41.573402%
Conclusions
KCB has reported Muscular Q3 Results. The EPS is 2.91 and if you straightline that I arrive at a FY EPS of 3.88. 14.95/3.88 Forward Implied PE of 3.853092.
I expect a sharp rebound into Year End in the Price.
Swot Analysis FY 2010 versus FY 2009
EPS 2.76 versus 1.84 +50.00%
Dividend 1.25 versus 1.00 +25%
PAT 7.177973b versus 4.083871b
Loan Loss Provision 2.14432b versus 1.574201b
The drivers are interest income and the fees and commissions. But the costs are up as we continue to invest in infrastructure, technology and innovation, Martin Oduor Otieno, KCBs chief executive, told an investor briefing.
We have a strong balance sheet at the moment as we are focusing on maintaining good liquidity at the moment. We expect in the second half of the year we will continue to grow on our balanced sheet.
@oduorotienoM speaks at #Acumen KCB #Rockefeller Twitpic
http://www.twitpic.com/5x84vk |
