Equity Analysis /

GCB Bank: GHANA COMMERCIAL BANK: FY 17 and Q1 18: Near-term softness should reverse later this year, Buy

    Tellimer Research
    5 June 2018
    Published byTellimer Research
    FY 17 net income of GHS235mn was down 26% yoy on a combination of declining margins, high short-term consolidation costs following the acquisitions of UT Bank and Capital Bank, and a higher impairment charge. The results were 36% ahead of our forecasts on higher net interest and fee income. The results reflect: 1) contributions from weaker NIM businesses (recently acquired UT Bank and Capital Bank); and 2) poor cost efficiency post consolidation. We expect these to correct starting in 2019.