Equity Analysis /

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

    Faith Mwangi
    Faith Mwangi

    Equity Research Analyst, Financials (East Africa)

    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.