Mon 27, KCB held an earnings call.
Make of it what you will but to me they said
"dear @Cde Monomotapa, our relationship is going to face some minor turbulence, but we love you, and we have plans for a rosy future together"Key highlights:· FY13 results to announce Thu 27th Feb.
· South Sudan accounts for 11.0% asset book while contributing 9.2% of PBT as of 3Q13. Bank definitely affected by disruption, yet to estimate the impact
· Net Interest Margin to decline by approximately 100bps to 9.3% in FY14. Loan book growth plans revamp of its SME, Micro, peronsal loans to make up for shrinking NIM. Corporate currently accounts for 44.0% of loans.
· Bank plans to improve its NPL ratio with target of 6.0% in FY14 from 8.4% in 3Q13 and a coverage ratio of 50.0-60.0% in FY14 compared to 44.5% in 3Q13.
· Customer numbers are expected to almost double to 5.0m, customer deposits grow 20% y/y by the end of FY14 through aggressive use of alternative delivery channels and agency banking.
· Non Interest Income estimating 44.0% y/y growth in FY14 to account for 35.0% of total income, through tech & supported by forex trading.
· Reduction of the cost to income ratio to 49.9% in FY14 from 53.2% in 3Q13
(adapted from http://www.rich.co.ke/rctools/wrapup.php)