CFC: VWAP KES 60, P/E 6x, P/B 0.87, ROA 2.1, ROE 11%, ROaA 3.1%, ROaE (excl. goodwill) 21.6%, Gross NPL/Loans 1.9%

Give us the comparative numbers for Equity Bank and KCB on the following metric to support your statement above:

1.Average interest on loans
2.Average interest expense
3.Spread

For HF,

2012
Average interest on loans 14.16%
Average interest expense 10.01%
Spread 4.14%

2011
Average interest on loans 11.54%
Average interest expense 4.55%
Spread 6.99%

2010
Average interest on loans 11.39%
Average interest expense 4.98%
Spread 6.42%

I will give you the figures for Equity Bank.

Net Interest Margin

2012-13%

2011-11.6%

2010-11.9%

Source: Equity Bank Investor Briefing 2012.

I hope its clear now.

@Yscun. Fantastic thread. #getting back to bizness.

HF is hands down the best bargain.
NIC looks interesting too. the only other that id consider due to its valuation.

Tier I banks truly have a huge a advantage in maintaining higher interest rates on loans than Tier II banks yet their cost of customer deposits is much lower than that of Tier II. The Tier I Banks interest rate spread are multiples more than those of Tier II Banks:


2012

HFCK
Average interest on loans 14.16%
Average interest expense 10.01%
Spread 4.14%

NIC
Average interest on loans 13.63%
Average interest expense 6.90%
Spread 6.74%

KCB
Average interest on loans 16.05%
Average interest expense 3.90%
Spread 12.15%

Equity Bank
Average interest on loans 20.25%
Average interest expense 3.12%
Spread 17.13%


2011

HFCK
Average interest on loans 11.54%
Average interest expense 4.55%
Spread 6.99%

NIC
Average interest on loans 10.62%
Average interest expense 3.65%
Spread 6.98%

KCB
Average interest on loans 11.88%
Average interest expense 1.47%
Spread 10.41%


Equity Bank
Average interest on loans 14.57%
Average interest expense 1.52%
Spread 13.05%

Note to Wazua admin >>> pls add a feature allowing posting of ms excel sheets/table