12th December 2017
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Company Data
 
KCB Group Ltd
http://www.kcb.co.ke/
Par Value:                  1/-
Closing Price:           42.00
Total Shares Issued:          3066056647.00
Market Capitalization:        128,774,379,174
EPS:             6.46
PE:                 6.502
 

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
http://www.rich.co.ke/media/docs/KCB%20END%20YEAR%20RESULTS%202014.pdf

26-FEB-2015 :: FY14 Investor Presentation
http://www.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
http://www.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
http://www.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
http://www.rich.co.ke/media/docs/Chairman%20Statement%20Full%20Year%20Results%202012.pdf

Q412 INVESTOR MEDIA PRESENTATION @KCBGroup
http://www.rich.co.ke/media/docs/Q412%20INVESTOR%20%20%20MEDIA%20PRESENTATION.pdf

The Full Year Press Release @KCBGroup FY 2012 Results here
http://www.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
http://www.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
Average Price Over the last 5 Weeks
Average Price Over the last 5 Months
No. Of Shares Traded Over the last 5 Weeks
No. Of Shares Traded Over the last 5 Months
Market Capitalization Over the last 5 Weeks
Market Capitalization Over the last 5 Months
Data Source: Nairobi Stock Exchange
Trading Day: 11 Dec 2017
 
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  11-SEP-2017 ::  Appointment of Non-Executive Director.
  Appointment of Non-Executive Director.

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  03-AUG-2017 ::  HALF YEAR RESULTS
  Financial Results for the Half year ended June 30, 2017.

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  20-JUN-2017 ::  Cautionary Announcement
  Cautionary Announcement on Alleged Purchase/Takeover Of National Bank Of Kenya Ltd By KCB Group Ltd.

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  11-MAY-2017 ::  Unaudited quarterly financial statements and other disclosures for the Period Ended 31st March 2017
  Unaudited quarterly financial statements and other disclosures for the Period Ended 31st March 2017

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  26-APR-2017 ::  Retirement of Non Executive Directors
  Retirement of Non Executive Directors

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  31-MAR-2017 ::  Notice of Annual General Meeting.
  Annual General Meeting of KCB Group Limited.

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  09-MAR-2017 ::  Full Year Results
  Audited Results & Other Disclosures for the Year Ended 31st December 2016.

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  20-JAN-2017 ::  Custody Services Change of Office Location
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