A Snapshot of FY18 For Various Kenyan Commercial Banks

Standard Chartered Bank

For the Standard Chartered Bank Limited, the NIC EPS grew by 17.6 percent on a year/year basis to 23.09 shillings. The net interest income was up 4.5 percent to 19.4 billion shillings.

Noninterest revenue went down 4.9 percent to 9.2 billion shillings while the operating expenses before provisions went up 13.6 percent to 14.8 billion shillings.

The Loan Loss Provisions was down 53.9 percent to 1.9 billion shillings while the loan book shrunk 6.1 percent 118.7 billion shillings.

Total Dividend is up 11.8 percent at 19.00 shillings from 17.00 shillings in FY17 with book closure slated for 26th April 2019.

Diamond Trust Bank

Diamond Trust Bank Kenya Plc released FY18 financial results reporting a 2.3 percent increase in Profit after Tax (PAT) to 7.1 billion shillings.

The performance was supported by Net Interest Income (NII) which grew 1.8 percent to 20.0 billion shillings coupled with Non-interest Revenue (NIR) that grew 3.0 percent to 5.4 billion shillings.

Operating income was up 2.0 percent to 25.5 billion shillings. Total operating expenses grew 8.9 percent to 11.5 billion shillings attributed to a 5.5 percent rise in staff costs to 4.2 billion shillings.

The Loan Loss Provisions (LLP) declined 30.7 percent to 3.0 billion shillings. Deposits rose 6.2 percent, and consequently, the balance sheet grew 4.0 percent.

The loan book remained depressed (-1.5 percent) at 193.1 billion shillings as an investment in government securities increased 4.3 percent to 117.3 billion shillings.

A total dividend of 2.60 shillings was declared, similar to FY17, which translates to a dividend yield of 1.9 percent.

NIC Group

For the NIC Group, the EPS declined 7.3 percent 6.01 shillings while the net interest income went down 1.8 percent to 10.58 billion shillings.

Noninterest revenue were up 11.4 percent to 4.64 billion shillings. Operating expenses before provisions were up 10.8 percent to 7.04 billion shillings while Loan Loss Provisions down 21.0 percent to 2.35 billion shillings.

Loan book regressed 1.4 percent to 118.07 billion shillings. Gross non-performing loan book moved up 17.6 percent to 16.84 billion shillings.

Final Dividend NIC Group shareholders increased by 25 percent to 1.25 shillings with books closure slated for 18th April 2019.

Co-operative Bank

The Co-operative Bank of Kenya Ltd reported a 9.5 percent growth in FY18 EPS to 2.18 shillings outpacing our expected EPS of 2.09 shillings.

The increase was buoyed by Net Interest Income (NII) which grew 9.5 percent to 30.8 billion shillings. However, Non-interest Revenue (NIR) fell by 4.4 percent on account of a 77.8 percent drop in fees and commissions on loans, attributed to the Effective Interest Rate (EIR) application under IFRS 9.

Total operating expenses before provisions grew by 9.8 percent on account of a 12.9 percent increase in staff costs to 11.45 billion shillings.

The balance sheet grew 6.9 percent primarily driven by investment in government securities (+10.5 percent), despite the 3.3 percent decline in the loan book.

A final dividend of 1.00 shillings was declared, a 25.0 percent increase, which translates to a dividend yield of 6.6 percent.