May'23 Review
• FY’23 Earnings Season – During the month, we had FY’23 earnings release from Safaricom where the telco reported a (22.24%) decline in PAT to KES 52.48Bn driven by a significant increase in operating costs as a result of commencement of full commercial operations in Ethiopia, effects of high inflation and the continued depreciation of the shilling. A final dividend of KES 0.62 was declared bringing the total dividend per share to KES 1.20.
• Q1’23 Banking Results - During the month, we had Q1’23 earnings releases from the banking sector. Equity Q1’23 results were a 7.90% increase in PAT to KES 12.80Bn driven by an increase in interest income and non-interest income. KCB Q1’23 results were a (1.50%) decline in PAT to KES 9.75Bn attributed to higher operating expenses and increased impairment provisioning. Standard Chartered results were a 45.65% increase in PAT to KES 4.03Bn driven by higher operating income. I&M Q1’23 results were a (1.96%) decline in PAT to KES 2.66Bn driven by increased operating expenses and higher impairment provisioning. Co-operative Q1’23 results were a 4.72% increase in PAT to KES 6.11Bn driven by an increase in operating income. DTBK Q1’23 results were a 10.78% increase in PAT to KES 2.65Bn driven by higher interest income and non-interest income. Bank of Kigali Q1’23 results were a 16.67% increase in PAT to KES 2.10Bn attributed to higher operating income. NCBA Q1’23 results were 48.15% increase in PAT driven by improved operating income. ABSA Q1’23 results were a 50.75% increase in PAT to KES 4.45Bn driven by increased interest income and non-interest income.
• Corporate Profit Warning - The month of May saw the announcement of an expectation of greater than 25% decline in prior year PAT from KPLC. The decline is attributed to increased foreign exchange losses arising from the continued weakening of the shilling as well as a partial impact of 15% reduction of the end user electricity tariff.
• Local Pump Prices Increase - EPRA increased the pump prices in all fuel categories following the removal of all the fuel subsidies. Increased fuel prices was largely attributed to an increase in the landing costs, continued shilling depreciation and increased FOB price of Murban crude oil. Petrol will retail at KES 182.70/litre, diesel at KES 168.00/litre and kerosene at KES 161.13/litre.
What does June hold ?
Listed Companies AGM- In the month of June, several listed companies will be holding their AGM’s where we anticipate continued use of virtual meetings. The listed companies that will hold their AGM’S in June are Sanlam (SLAM), BAT Kenya (BAT), Total Kenya (TOTL), Bamburi Cement (BAMB) Kenya Reinsurance (KNRE), BOC Kenya (BOC) and Standard Group (SGL).
