During the month of May 2016, Kenyan listed banks released their Q1’2016 results recording an average growth in core earnings per share of 12.8% compared to 5.0% in Q1’2015. In summary, the listed banks can be categorized into four main buckets:
- The strong growth banks, with above 20% earnings per share growth: HF Group and Standard Chartered. However, it is notable that for both HF Group and Standard Chartered, growth was driven by real estate sales and forex income, respectively, which may not be sustainable in the future
- The stable growth banks, with 10% and above growth in earnings per share: Equity Group
- Anemic growth banks, with below 10% earnings per share growth: Diamond Trust Bank, Co-operative Bank, KCB Group, Barclays Bank, NIC Bank, I&M Bank and CFC Bank
- Negative growth banks: National Bank of Kenya
Below is a summary of the key metrics:
| Listed Banks Q1’2016 Earnings and Growth Metrics | |||||||||||
| Bank | Core EPS Growth | Deposit Growth | Loan Growth | Net Interest Margin | Fee income to Operating Revenue | LDR | |||||
| Q1’2016 | Q1’2015 | Q1’2016 | Q1’2015 | Q1’2016 | Q1’2015 | Q1’2016 | Q1’2015 | Q1’2016 | Q1’2015 | Q1’2016 | |
| HF Group | 47.6% | -33.7% | 23.6% | 15.9% | 12.1% | 28.0% | 6.6% | 6.2% | 20.0% | 16.7% | 130.8% |
| Stanchart | 42.7% | -28.0% | 12.9% | 9.2% | -3.7% | -10.6% | 9.4% | 9.2% | 32.6% | 24.3% | 59.5% |
| Equity Group | 19.8% | 10.5% | 8.1% | 34.6% | 22.4% | 34.6% | 11.0% | 10.7% | 33.3% | 42.5% | 81.2% |
| DTB Bank | 9.5% | 9.4% | 26.1% | 21.6% | 24.1% | 26.0% | 1.8% | 1.7% | 20.5% | 27.0% | 87.2% |
| Co-op Bank | 7.7% | 28.7% | 11.9% | 24.9% | 16.1% | 19.0% | 16.9% | 9.8% | 33.8% | 33.7% | 81.7% |
| KCB Group | 6.1% | 6.5% | 6.6% | 26.7% | 16.5% | 27.1% | 8.5% | 8.8% | 26.0% | 33.3% | 81.7% |
| Barclays Bank | 2.6% | 8.3% | 8.3% | 8.1% | 21.7% | 7.3% | 10.4% | 11.2% | 20.7% | 21.6% | 90.2% |
| NIC Bank | 0.0% | -4.9% | 14.8% | 4.1% | 6.1% | 25.3% | 8.1% | 7.5% | 26.8% | 31.3% | 101.5% |
| I&M Bank | 0.0% | 0.0% | 15.7% | 18.3% | 11.3% | 21.5% | 1.8% | 1.7% | 25.6% | 25.7% | 96.1% |
| CFC Bank* | 0.0% | 0.0% | 3.2% | 17.3% | 14.7% | 19.5% | 5.9% | 5.7% | 41.0% | 45.0% | 95.2% |
| National Bank | -38.4% | 20.5% | 16.6% | 4.3% | -5.3% | 48.4% | 6.8% | 7.8% | 24.5% | 29.3% | 66.7% |
| Weighted Average** | 12.8% | 5.0% | 10.9% | 22.2% | 15.6% | 21.1% | 9.2% | 8.3% | 29.3% | 32.9% | 83.2% |
| *CFC and I&M numbers are for the bank only and not for the listed holdings entities. We have excluded them in calculation of the weighted average | |||||||||||
| **Average is Market cap weighted | |||||||||||
Source: Cytonn Research.