BARCLAYS BANK OF KENYA: 1Q17 EARNINGS UPDATE

-Barclays Bank of Kenya (BBK) released its 1Q17 results recording a 19.8% y-o-y decline in profit after tax (PAT) to KES 1.8 BN.
-Its 1Q17 EPS stands at KES 0.32.
-Annualized ROE declined 473 bps y-o-y to 15.9% while annualized ROA shed 93 bps y-o-y to 2.7%. -Trailing EPS stands at KES 1.28 (-17.7% y-o-y).
-Net interest income declined 7.1% y-o-y to KES 5.0 BN. This was on the back of a 5.0% y-o-y contraction in interest income to KES 6.4 BN.
-Non-funded income contracted 7.8% y-o-y to KES 2.4 BN courtesy of an 11.8% and 55.6% y-o-y decline in fees and commission income and other income to KES 1.5 BN and 107 MN respectively.
-Forex income however noted a 19.0% y-o-y growth to KES 805 MN arising from the relatively increased KES volatility against the major trading currencies in 1Q17.
-The cost to income ratio rose 358 bps y-o-y to 55.5%. This was due to the decline in total income (-7.3% y-o-y) outpacing the decline in operating expenses (-0.9% y-o-y).
-Total assets rose 7.9% y-o-y to KES 260.8 BN. This was driven by a 10.7% y-o-y growth in loans and advances to KES 168.7 BN.
-Deposits due from banks similarly rose 22.0% to KES 6.6 BN due to increased activity in the interbank market and increased intra-group activity.

-Gross NPLs rose 30.4% y-o-y to KES 7.9 BN (-31.2% q-o-q) whereas Total NPL (Gross NPL less interest in suspense) rose 45.1% y-o-y (-27.2% q-o-q) to KES 6.4 BN.
-The NPL ratio rose 65 bps y-o-y to 4.5%.

-On a trailing basis, Barclays Bank of Kenya is trading at a P/E ratio of 6.8x, relative to an industry median of 6.5x, a P/B of 1.1x relative to an industry median of 1.0x, an ROA of 2.7% in line with the industry’s median.
-Barclays Bank’s ROE stands at 15.8% relative to an industry median of 18.3%.

(Company Filings, DBIB Research)

http://www.businessdailyafrica.com/corporate/Barclays-slashes-stake-in-South-African-unit/539550-3950978-rx58ny/index.html

Once details of the institutional investors who bought are known the counter wil be attractive.
Any price below 8 pita nayo

http://www.businessdailyafrica.com/corporate/Barclays-slashes-stake-in-South-African-unit/539550-3950978-rx58ny/index.html

Once details of the institutional investors who bought are known the counter wil be attractive.
Any price below 8 pita nayo