Kenya

Diamond Trust Bank: Weak results on low balance sheet growth and asset quality; downgrade to Hold

  • We downgrade the bank to a Hold, with the poor performance evidence of downside risk for our estimates

  • EPS grew by just 1% yoy to KES24.27, with total operating income down by 3% yoy on weaker net interest margin

  • Gross NPLs unexpectedly increased by 12% yoy, which we find concerning

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March 20th, 2020
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This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a research recommendation because the subject of the research is not listed on any European exchange, it has nevertheless been treated as a research recommendation to ensure consistent treatment of all Tellimer's research. This report has been produced by the analyst(s) named above (the "Analyst").

The Analyst certifies that the views and forecasts expressed in this report accurately reflect their personal views about the subject, securities, or issuers specified herein. In addition, the Analyst certifies that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.

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