Kenya | NSE

DTB group FY’21 EPS edged up 20.35% to KES 13.98 higher than our expectations of KES12.96. PAT rose 20.35% y/y to KES 3.91Bn driven by a 8.67% y/y increase in Total operating income to KES 26.30Bn supported by interest income from Government securities. Customer deposits grew 11.16% (better than our +7.00% y/y growth forecast) to KES 331.45Bn while the loan book grew slower at 5.67% to KES 220.43Bn (lower than our expectation of a +7.76% y/y growth), highlighting the bank’s lending apathy.

NCBA Group PAT increased by 123.67% y/y to KES 10.22Bn while the EPS grew by a similar margin to KES 6.21, both were above our expectations. Growth was driven by a 5.85% y/y increase in Total operating income to KES 49.15Bn and a 37.79% reduction in loan loss provisioning. Net-interest income grew at 6.06% to KES 27.04Bn mainly driven by income from government papers. Non-funded income grew by 5.59% to KES 22.11Bn on the back of increased digital transactions. Subsequently, the revenue mix for NII:NFI remained at 55:45 similar to FY’20 being one of the industry’s best balance.

Equity Group FY’21 net earnings edged up by 99.37% to KES 40.07Bn which was above our expectations of a KES 25.67Bn PAT, while the EPS also grew 98.09% y/y to KES 10.38. The impressive growth in bottom-line was mainly driven by a 21.07% growth in operating income to KES 113.39Bn and a 78.05% y/y decline in Loan Loss provisioning to KES 5.84Bn. Customer deposits grew 29.45% y/y to KES 958.98Bn while the loan book increased 23.00% y/y to KES 587.78Bn, both were above our expectations. Loan book growth was driven by increased lending in Kenya, South Sudan and Tanzanian markets while deposits mobilization through digital channels was highest in Kenya, Uganda and DRC.

COOP Bank FY’21 EPS edged up 43.94% to KES 2.85, well above our expectations . PAT came above our expectations by edging up 53.00% y/y to KES 16.54Bn driven by a 12.27% y/y increase in Total Operating income to KES 60.43Bn supported by interest income from loans and government securities. Customer deposits grew 7.68% to KES 407.73Bn while the loan book grew faster at 8.22% to KES 310.20Bn, both were above our expectations. Notably, Kingdom Bank also registered a PAT of KES 497.79Mn from a loss of KES 10.18Mn in FY’20 while the balance sheet expanded 2.2% y/y to KES 31.69Bn. Bancassurance (KES 803.90Mn) and Asset management business (KES 140.40Mn) were also profitable with the South Sudan subsidiary recording a KES 421.70Mn loss.

KCB Group's FY’21 EPS edged up 74.43% to KES 10.64, well above our expectations. PAT shot up 74.32% y/y to KES 34.17Bn, which was also above our expectations, driven by a double boost of a 13.53% y/y increase in Total Operating Income to KES 108.63Bn and a 52.27% y/y decline in Loan Loss Provisions to KES 12.99Bn. Customer deposits grew 9.11% to KES 837.21Bn driven by term deposits while the loan book increased by 13.48% to KES 675.48Bn, both were above our expectations. Loan book growth was driven by increased lending in Kenya, Rwanda and the Ugandan markets supplemented by mobile loans which grew to KES 158.0Bn.

Absa Group's FY’21 EPS edged up 159.74% to KES 2.00, higher than our expectations. PAT was up 161.17% y/y to KES 10.87Bn driven by a 6.95% y/y increase in Total Operating Income to KES 36.92Bn supported by interest income from loans. Customer deposits growth (+5.95% y/y to KES 268.72Bn) was driven by cheaper mobilization while the loan book grew marginally faster (+12.15% y/y to KES 234.23Bn) owing to a reduced lending risk environment. Notably, the exceptional items reduced 100% as an indication of the completion of the transition from the Barclays brand.