Equity Analysis /
Kenya

NCBA Group: NIC Bank: Q1 18 – core earnings decline yoy

    Faith Mwangi
    Faith Mwangi

    Equity Research Analyst, Financials (East Africa)

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    Tellimer Research
    18 May 2018
    Published byTellimer Research
    Performance is disappointing, with numbers already falling behind our FY 18 forecast of 29% EPS growth. Key downsides were: 1) the 8% yoy decline in net interest income on a 160 bps yoy decline in net interest margin; 2) non-interest revenue rose by a mere 4% yoy; and 3) operating expenses rose by 9% yoy against our 6% FY 18 estimate. Overall, pre-provision profit was down by 13% yoy.