KCB | KCB Group FY20 Earnings Note | AIB AXYS Africa

    KCB Group’s FY20 PAT declined 22.1% y/y to KES 19.6B below our expectation of a 9.8% y/y decline in net earnings. The drop was driven by a 209.5% y/y surge in loan loss provisions to KES 27.5B coupled with a 11.6% y/y uptick in operating expenses to KES 43.2B. The group announced a first and final dividend of KES 1.00 (dividend yield of 2.5%).

    We maintain a BUY recommendation on KCB Group with a target price of KES 46.17 offering a potential upside of 15.1% on the current price of KES 40. 10.

     

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    AIB-AXYS Africa
    AIB-AXYS Africa Ltd is the fusion of two established companies; AIB Capital Limited and Apex Africa Capital Limited, both with over 25 years of experience in the Securities market. With the solid reputation and experience of the professional teams, we leverage talent and networks to better service businesses and investors looking to capitalize on the African growth story, and its vibrant financial sector.
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