These are stunning set of results...well beyond expectations...the bank retooled its balance sheet again in 2013...instead of lending to banks & packing money at Central Banks...the bank is now lending to customers...net effect of this new strategy is strong growth in net advances.

Meanwhile the bank continues to gain market share from the likes of KCB and Equity Bank as evidenced by the strong growth in customer deposits.

I expect 2014 to be another year of stunning growth.

I expect loan book growth, South Sudan (banker of the government) & non interest income to drive growth in 2014.

Fair Value is now at Ksh200.

And it's not a joke.

1st Half 2013 EPS was around 5.9, that means for the 2nd half 2013, they managed EPS of 7.0. (note that 1st half had elections and GoK had frozen paying contractors).

So, using the 2nd half EPS to project the future, that means EPS for FY2014 can be 14/-. Using a conservative PER of 12x, then this stock should be around 168/- this year.

Note that I used a very mean EPS meaning it will grow at 8% (12.95 to 14.00, for 2012-2013, they managed 31% growth), and the PER is for a stagnating company ( the likes of Standard Chartered and Barclays that seems to have reached menopause).

HOWEVER, THE DIVIDEND PAYOUT IS TOO SMALL! THEY NEED TO ATTRACT DIVIDEND HUNTERS.

Bulls eye