When Dr Patrick Njoroge, the outgoing Central Bank of Kenya Governor, took over in June 2015, his first Monetary Policy Meeting – on July 7, 2015, saw the Central Bank Rate (CBR) rise by 1.5% to 11.5%. It was the largest in his eight years at the helm. The CBR is the rate at which […]
We lower our FY23-27e earnings per share (EPS) estimates for KCB by an average of 12.2%. Its risk pricing model (RPM) will result in lower gross yields reducing our average NIM estimates by 110 basis points to 7.9%. We also raise our FY23-27e operating expenditure (OPEX) estimates by 14.0% on average to reflect the impact […]
We forecast a net interest income (NII) compound average growth rate (CAGR) of 16.0% between FY22-27e, driven by a net loan CAGR of 14.3%. The NII growth rises as net interest margin (NIM) expands 6.2% in FY23e (from 5.6% in FY22) because of a rising rate environment and then up to 6.4% by FY27e as […]
The Co-op’s earnings compound average growth rate (CAGR) decelerated from 34.6% over FY07-13 to 10.0% during FY13-22. It was due to: i) Net interest margin (NIM) contraction from an average of 8.4% over FY07-16 (before the introduction of rate caps) to 8.1% over FY17-22; ii) an increase in the cost of risk from 0.5% over […]