My Observation
Jubilee operating income declined by 37% (from 1,692,717 to 1,070,097). They were saved by share of results of associates which was up 167% (from 420,978 to 1,123,735).
However, the brighter side of things is that the operating income was messed up by Net Fair Value Gains on Financial Assets at FVTPL which went down 120% (from 1,633,103 to a loss of 329,164). This will improve when stock markets improve.
Their underwriting business is doing well and recorded a profit of 540,000 up from 476,000. And a feather was added to their rich cap by Bima Awards 2012 because of this insurance business.
Also notable is that they increased their holding of government securities by 3,919,999. This will give them good returns in an era where rates at primary market are declining (meaning good valuation of the bond and good returns on trading in secondary market)
From a holistic view, these are fair results. From a futuristic view, the stock is a BUY.
…. And applause that Jubilee is now also No. 1 (market leader) in Tanzania.
N.B. Figures are in KES '000'