Par Value: 2/-
Closing Price: 10.30
Total Shares Issued: 5431536000.00
Market Capitalization: 55,944,820,800
EPS: 0.77
PE: 13.377
ABSA GroupKenya reports H1 2021 Earnings versus H1 2020
HY Total Assets 398.151996b versus 391.878841b
HY Kenya Government Securities held for dealing purposes 44.206563b versus 41.857346b
HY Kenya GVT Securities [FVOCI] 77.064445b versus 92.013288b
HY Loans & Advances [net] to Customers 218.872997m versus 201.948138m +8.38%
HY Customer Deposits 263.943909m versus 248.745829b
HY Total Interest Income 15.190383b versus 15.317579b
HY Total Interest Expenses 3.195293b versus 4.013160b
HY Net Interest Income 11.995090b versus 11.304419b
HY Total non interest income 5.845105b versus 5.509087b
HY Total Operating Income 17.840195b versus 16.813506b
HY Loan Loss Provision 1.942104b versus 5.384951b -62.49%
HY Staff Costs 4.414972b versus 5.109598b -13.594%
HY Other Operating expenses 2.939744b versus 2.300290b
HY Total Operating Expenses 9.894947b versus 13.554039 -26.99%
HY Profit before Tax 7.945248b versus 3.259467b
HY Profit after Tax 5.571915b versus 0.588992b +846%
HY EPS 1.03 versus 0.11 +836.36%
HY Net NPLs 2.054507b versus 1.821742b
Commentary
In the first half of 2021, we delivered a strong performance largely driven by growth in interest income particularly in the small and medium enterprises segment as we accelerated our efforts in supporting businesses to recover from the effects of the pandemic.
The performance was also supported by a significant reduction in impairments related to improving macro economic variables.
The outcomes of the first half of 2021 are a validation that our Growth, Transformation and Returns strategy is working and delivering value for our stakeholders.
On Growth: Revenue increased by 6% to KES17.8 billion and customer assets increased by 8% to KES219 billion with total assets at KES398 billion.
On Transformation: The efficiency efforts paid off with operating expenses reducing by 3% resulting into a cost to income ratio of 45%.
On Returns: Return on equity increased to 22%. This was supported by the strong growth in profits, improved efficiency, and well managed capital.
The evolving impact of the pandemic required us to re-visit our strategic priorities, we took decisive actions towards capital and liquidity preservation, supporting our customers through various interventions such as loan moratoriums and restructures, fee waivers for digital transactions, capacity building for SMEs among other Force for Good initiatives.
These decisions are paying off, our customer operations are resilient as we have seen with credit book quality and our franchise is strong
Our business remains very well positioned to help our clients manage through the uncertain times with the improved capital and liquidity levels well placed to help us capture opportunities for growth.
With the improved efficiency levels, the bank will continue re investing in digital transformation in order to improve customer experience.
We would like to thank our customers, our staff and all stakeholders for their support as we continue to navigate the COVID 19 pandemic, whose impact is still unfolding and may remain with us for a long time.
The Board has not recommended an interim dividend.
Customers have resumed payments on 94% of all restructured loans as of June, we had restructured a total of Ksh.62 billion Jeremy Awori , CEO @AbsaKenya @MaudhuiHouse
https://twitter.com/MaudhuiHouse/status/1430785423673016326?s=20
Conclusions
simply outstanding and significantly above H1 2019 Pre Covid Earnings
This is a very cheap stock on a Forward implied PE Basis
ABSA Group Full Year 2020 Earnings versus FY through 2019
FY Total Assets 379.440676b versus 373.981791b
FY Kenya Government and Other Securities held for dealing Purposes 36.375211b versus 43.774296b
FY Fair Value through other comprehensive Income [FVOCI] Kenya Government Securities 89.681995b versus 79.221471b
FY Loans and Advances to Customers [Net] 208.854694b versus 194.894941b
FY Customer deposits 253.630105b versus 237.738654b
FY Total Interest Income 31.440093b versus 31.023921b
FY Total Interest Expenses 8.058839b versus 7.845382b
FY Net Interest Income 23.381254b versus 23.178539b
FY Total Non Interest Income 11.140304b versus 10.588312b
FY Total Operating Income 34.521558b versus 33.766851b
FY Loan Loss Provision 9.026772b versus 4.200588b
FY Staff Costs 9.761649b versus 10.158447b
FY Total Operating Expenses 25.673338b versus 21.845616b
FY Profit before Tax and Exceptional Items 8.848220b versus 12.281235b
FY Exceptional Items [3.201987b] versus [1.528986b]
FY Profit after Exceptional items 5.646233b versus 10.752249b
FY Profit after Tax 4.162009b versus 7.456077b
FY EPS 0.77 versus 1.37
FY 0 Dividend
Company Commentary
Repayment holiday extended to 40+% of total loan accounts
abridged financial statements @AbsaKenya for FY 2020: @MwangoCapital
https://twitter.com/MwangoCapital/status/1374582126599888896?s=20
Net interest income up 2%
Loan loss provisions are up by more than 100%
Normalized Profit After Tax down 23%
Exceptional items [income statement] went up 109%
No dividend
During the period , Impairment costs went up by 115% KES9bn from 4.2Bn in 2019 @AbsaKenya @MaudhuiHouse
https://twitter.com/MaudhuiHouse/status/1374342997303775235?s=20
Conclusions
The Dividend Miss will disappoint.
Double Digit PE is considerably higher than Peers but I surmise they have been very aggressive on the write down side where they will probably have a cushion this Year unlike their Peers
Absa H1 2020 Earnings
HY Total Assets 391.878841b versus 353.836b
HY Loans and Advances [Net] to Customers 201.948138b versus 186.655058b
HY Total Operating Income 16.813506b versus 16.319118b
HY Loan Loss Provision 5.384951b versus 1.641335b
HY Total Operating Expenses [13.554039b] versus [10.045547b]
HY Profit Before Tax 1.592538b versus 5.712761b
HY Profit After tAX 588.992M VERSUS 3.877714B
HY EPS 0.11 versus 0.71
Provisions by @AbsaKenya increased due to COVID-19 and IFRS9 and from 1.6 billion in 2019 to 5.3 billion @bankelele
.@Absabank has posted a Ksh 1.2 Billion Normalized Profit after Tax (PAT) for the half year period ended June 30th 2020. @MaudhuiHouse
ABSA Bank Kenya Plc (NSE: ABSA) announced an 84.8% y/y decline in Profit after Tax (PAT) to KES 0.6Bn.
The performance was primarily attributed to a 228.1% y/y (282.7% q/q) rise in Loan loss provision (LLP) to KES 5.4Bn
The gross non performing loans (NPLs) rose 8.4% y/y (-1.9% q/q) to KES 17.0Bn
a big chunk of the provisioning being undertaken on the performing book, on the back of the economic outlook.
The bank has restructured KES 57.0Bn worth of loans, representing 28.2% of the loan book.
56.0% of the KES 17.0Bn NPL book was attributed to the corporate space, primarily originating from Manufacturing (KES 5.8Bn), Real Estate & Construction (KES 1.5Bn) and Trade (KES 1.4Bn).
Conclusions
Threw the Kitchen sink into these results which is commendable.
Absa Bank Kenya Plc FY 2019 results through 31st December 2019 vs. 31st December 2018
FY Kenya Government Securities 79.221471b vs. 63.230224b +25.291%
FY Loans and advances to customers (net) 194.894941b vs. 177.353969b +9.890%
FY Total assets 373.981791b vs. 324.839666b +15.124%
FY Customers deposits 237.738654b vs. 207.407834b +14.624%
FY Loans and advances to customers interest income 22.544646b vs. 21.527991b +4.722%
FY Government securities interest income 8.101769b vs. 7.382300b +9.746%
FY Total Interest income 31.023921b vs. 29.061293b +6.753%
FY Customer deposits expenses [6.454616b] vs. [6.126393b] +5.358%
FY Net Interest income 23.178539b vs. 21.992411b +5.393%
FY Fees and commissions income on loans and advances 1.410349b vs. 1.052491b +34.001%
FY Other fees and commissions 4.710388b vs. 4.572316b +3.020%
FY FX trading income 3.640577b vs. 3.279548b +11.008%
FY Total non interest income 10.588312b vs. 9.702070b +9.135%
FY Total operating income 33.766851b vs. 31.694481b +6.539%
FY Loan loss provision [4.200588b] vs. [3.870757b] +8.521%
FY Staff costs [10.158447b] vs. [9.768076b] +3.996%
FY Total operating expenses [21.485616b] vs. [21.048750b] +2.075%
FY Profit before tax and exceptional items 12.281235b vs. 10.645731b +15.363%
FY Exceptional items [1.528986b] vs.
FY Profit after tax and exceptional items 7.456077b vs. 7.416042b +0.540%
EPS 1.37 vs. 1.37
Dividend per share 1.10 vs. 1.10
Net NPL and advances 3.109474b vs. 4.280497b -27.357%
Message from the directors:
The separation from Barclays PLC continues to have an impact on our financial results.
This includes a substantial change spend, as we invest in the systems required to be separated, the Transitional Service Agreement costs wepay to Barclays PLC for the provision of various services during the separation period together with the costs incurred for branding.
In this period, we have reported separation costs of Shs 1.5 billion this is reported as an exceptional item in the financial statements.
We are pleased with our financial outcomes, which are a validation that our strategy is working.
Excluding the one-off exceptional item of Shs 1.5 billion related to the transition expenses, our Normalised PAT
is Shs 8.5 billion or 15% up from 2018.
Pre provision profit is Shs 16.5 billion 14% growth from 2018.
Normalised Return on Equity (ROE) is 18.4% an improvement from 16.8% in 2018 while normalized cost to
income ratio is 51%
Total assets have grown by 15% and customer deposits is 15%.
Since 2018 to end of 2019, our stock price out performed all key indices at 39% growth.
The Directors note that an interim dividend of Shs 0.20 per ordinary share of the company was paid on October 11 2019. As such, subject to the approval of the shareholders, the directors have resolved to recommend to members at the forthcoming Annual General Meeting a final dividend for the year of Shs 0.90 per ordinary share of the company. The Capital Markets Authority (CMA) advised in a press statement dated 18 March 2020 that AGMs scheduled for March, April and May 2020 be deferred to a later date. In view of this the date of the AGM will be advised later
The above consolidated statement of comprehensive income and statement of financial position are extracts of the Banks financial statements which have been audited by Ernst & Young LLP and can be accessed on the institution's website www.absabank.co.ke
Conclusions
Excluding the one-off exceptional item of Shs 1.5 billion related to the transition expenses, our Normalised PATis Shs 8.5 billion or 15% up from 2018.
Barclays Bank of Kenya H1 2019 results through 30th June2019 vs. 30th June 2018
H1 Kenya Government and other securities held for dealing purposes 32.861890b vs. 22.985975b +42.965%
H1 Kenya Government Securities Available for Sale 81.185169b vs. 70.342919b +15.413%
H1 Loans and advances to customers (net) 186.655050b vs. 176.115166b +5.985%
H1 Total assets 353.836906b vs. 316.628855b +11.751%
H1 Customers deposits 229.669376b vs. 216.808933b +5.932%
H1 Total shareholders funds 42.387341b vs. 40.806896b +3.873%
H1 Total Interest income 15.183007 vs. 14.138810b +7.385%
H1 Total interest expenses [4.150546b] vs. [3.172289b] +30.838%
H1 Net Interest income 11.032461b vs. 10.966521b +0.601%
H1 FX trading income 1.707565b vs. 1.641627b +4.017%
H1 Total non interest income 5.286657b vs. 4.696931b +12.556%
H1 Total operating income 16.319118b vs. 15.663452b +4.186%
H1 Loan loss provision [1.641335b] vs. [1.716942b] -4.404%
H1 Total operating expenses [10.045547b] vs. [10.377635b] -3.200%
H1 Profit before tax and exceptional items 6.273571b vs. 5.285817b +18.687%
H1 Exceptional items [560.810m] vs.
H1 Profit after tax and exceptional items 3.877714b vs. 3.762069b +3.074%
EPS 0.71 vs. 0.69 +2.899%
Interim dividend per share 0.20 vs. 0.20
Total NPL and Advances 12.676816b vs. 10.931660b +15.964%
Net NPL and Advances 2.173966b vs. 3.590426b -39.451%
Liquidity ratio 38.7% vs. 38.3% +0.400%
Conclusions
Exceptional Item [560.81m] crimped what was a +18.687% performance
Barclays Bank of Kenya FY 2018 results through 31st December 2018 vs. 31st December 2017
FY Kenya Government Securities 63.230224b vs. 58.476028b +8.130%
FY Loans and advances to customers (net) 177.353969b vs. 168.397417b +5.319%
FY Total assets 324.839666b vs. 271.177377b +19.789%
FY Customers deposits 207.407834b vs. 185.977380b +11.523%
FY Loans and advances to customers interest income 21.527991b vs. 21.259156b +1.265%
FY Government securities interest income 7.382300b vs. 5.775128b +27.829%
FY Total Interest income 29.061293b vs. 27.171214b +6.956%
FY Customer deposits expenses [6.126393b] vs. [4.834902b] +26.712%
FY Net Interest income 21.992411b vs. 21.801422b +0.876%
FY Fees and commissions income on loans and advances 1.052491b vs. 635.895m +65.513%
FY Other fees and commissions 4.573316b vs. 4.636524b -1.363%
FY FX trading income 3.279548b vs. 2.863594b +14.526%
FY Total non interest income 9.702070b vs. 8.457129b +14.721%
FY Total operating income 31.694481b vs. 30.258551b +4.746%
FY Loan loss provision [3.870757b] vs. [3.115113b] +24.257%
FY Staff costs [9.768076b] vs. [10.113604b] -3.416%
FY Total operating expenses [21.048750b] vs. [19.897572b] +5.786%
FY Profit before tax and exceptional items 10.645731b vs. 10.360979b +2.748%
FY Profit after tax and exceptional items 7.416042b vs. 6.926319b +7.070%
EPS 1.37 vs. 1.28 +7.031%
Dividend per share 1.10 vs. 1.00 +10.000%
Net NPL and advances 4.280497b vs. 3.787981b +13.002%
2018 was the best financial year of growth for Barclays Kenya in over a decade. @JeremyAwori @Barclays_Kenya #BBKResults2018 @MaudhuiHouse
https://twitter.com/MaudhuiHouse/status/1104980214445158401
Timiza virtual banking platform grows to 3 million customers and KES 10 billion of lending within the first year of launch, @JeremyAwori @Barclays_Kenya #BBKResults2018 @MaudhuiHouse
https://twitter.com/MaudhuiHouse/status/1104977956924022785
The @Barclays_Kenya is managing over 320 billion worth of customer assets and has over 207 billion shillings in customer deposits #BBKResults2018 @jumaf3
https://twitter.com/jumaf3/status/1104978129167233024
Conclusions
slightly stronger Earnings than at the Half Year mark.
Timiza has traction.
The ABSA situation will also mean Barclays will be better poised to capture growth going forward.
Barclays Bank Kenya reports H1 2018 Earnings versus H1 2017 Earnings
H1 2018 Total Assets 316.628855b versus 268.186848b
H1 2018 Customer Deposits 216.808933b versus 188.652234b
H1 2018 Total Interest Income 14.138810b versus 13.136813b
H1 2018 Net Interest Income 10.966521b versus 10.544100b
H1 2018 Total Non Interest Income 4.696931b versus 4.394476b
H1 Total Operating Income 15.663452b versus 14.938576b
H1 2018 Loan Loss Provision 1.716942b versus 1.353470b +26.85%
H1 2018 Total operating expenses 10.377635b versus 9.786409b +6.04%
H1 2018 Profit before Tax 5.285817b versus 5.152167b +2.59%
H1 2018 Profit After Tax 3.762069b versus 3.542638b +6.194%
H1 2018 EPS 0.69 versus 0.65 +6.153%
H1 2018 Dividend 0.20 unchanged
Conclusions
a Sequential Q on Q slowing +9.375% EPS at Q1 2018 now +6.153% at H1 2018
Q1 Kenya government securities available for sale 67.003592b vs. 44.019539b +52.213%
Q1 Loans and advances to customers (net) 165.541052b vs. 168.701793b -1.874%
Q1 Customer deposits 193.286258b vs. 181.535911b +6.473%
Q1 Net interest income/ [loss] 5.462851b vs. 5.034852b +8.501%
Q1 Total operating income 7.712938b vs. 7.405120b +4.157%
Q1 Total operating expenses [5.000344b] vs. [4.885258b] +2.356%
Q1 Profit before tax and exceptional items 2.712594b vs. 2.519862b +7.649%
Q1 Profit after tax and exceptional items 1.882425b vs. 1.749567b +7.594%
EPS 0.35 vs. 0.32 +9.375%
Net NPL 3.578829b vs. 3.386027b +5.694%
FY Earnings 2017
FY Kenya Government Securities available for sale 58.476028b vs. 48.698795b +20.077%
FY Loans and advances to customers (net) 168.397417b vs. 168.509529b -0.067%
FY Total assets 271.177377b vs. 259.692012b
FY Customers deposits 185.977380b vs. 178.179795b +4.376%
FY Total shareholders funds 44.099136b vs. 42.388242b +4.036%
FY Loans and advances to customers interest income 21.259156b vs. 20.617217b +3.114%
FY Government securities interest income 5.775128b vs. 5.587158b +3.364%
FY Total Interest income 27.171214b vs. 28.121189b -2.386%
FY Customer deposits expenses [4.834902b] vs. [4.551312b] +6.231%
FY Total interest expenses [5.396792b] vs. [5.786958b] -6.742%
FY Net Interest income 21.801422b vs. 22.334231b -2.386%
FY Other fees and commissions 4.636524b vs. 4.811540b -3.637%
FY FX trading income 2.863594b vs. 2.620337b +9.283%
FY Total non interest income 8.457129b vs. 9.349881b -9.548%
FY Total operating income 30.258551b vs. 31.684112b -4.499%
FY Loan loss provision [3.115113b] vs. [3.927137b] -20.677%
FY Staff costs [10.113604b] vs. [9.729330b] +3.950%
FY Other operating expenses [3.957602b] vs. [4.566946b] -13.342%
FY Total operating expenses [19.897572b] vs. [20.831705b] -4.484%
FY Profit before tax and exceptional items 10.360979b vs. 10.852407b -4.528%
FY Profit after tax and exceptional items 6.926319b vs. 7.399396b -6.393%
EPS 1.28 vs. 1.36 -5.882%
Dividend per share 1.00 vs. 1.00
Total NPL and advances 9.358657b vs. 8.782749b +6.557%
Liquidity ratio 33.4% vs. 28.3% +5.100%
Capital adequacy ratio at 18% vs regulatory limit of 14.5%
The implementation of the interest rate cap compressed our margins and resulted in a decline in our revenues. Currently, our strategy is to close the income gap by increasing sales volumes in the upper segments, increasing our product penetration in our current client base and increasing our focus on transactional banking deposits, Barclays Kenya MD, Jeremy Awori, said.
To manage costs, we are making sustainable investments in a number of running initiatives designed to create sustainable efficiencies. These initiatives include the automation of our processing centers, investments in alternate channels and the implementation of branch rationalisation programmes, said Awori.
Conclusions
I thought these were resilient results.
Trailing PE of less than 9.
In fact Barclays Kenya was one of my picks for the year
02-JAN-2018 :: @StanChartKE and @Barclays_Kenya (I expect more than +25% in 2018)
https://rich.co.ke/media/docs/PX_014NSX0101-3.pdf
Barclays 1 2017 Earnings versus H1 2016
H1 Kenya Government securities 52.649364b vs. 47.225521b +11.485%
H1 Loans and advances to customers (net) 163.782554b vs. 153.304212b +6.835%
H1 Total assets 268.186848b vs. 256.142225b +4.702%
H1 Customers deposits 188.652234b vs. 182.875680b +3.159%
H1 Total shareholders funds 40.786729b vs. 39.103237b +4.305%
H1 Net interest income 10.544100b vs. 11.097121b -4.983%
H1 Total non-interest income 4.394476b vs. 5.137897b -14.469%
H1 Total operating income 14.938576b vs. 16.235018b -7.985%
H1 Loan loss provision [1.353470b] vs. [2.009443b] -32.645%
H1 Staff costs [5.123834b] vs. [4.875849b] +5.086%
H1 Total operating expenses [9.786409b] vs. [10.411894b] -6.007%
H1 Profit before tax and exceptional items 5.152167b vs. 5.823124b -11.522%
H1 Profit after tax and exceptional items 3.542638b vs. 4.086689b -13.313%
EPS 0.65 vs. 0.75 -13.333%
Dividend per share 0.20 vs. 0.20
Total NPL and Advances 8.765817b vs. 6.553440b +33.759%
Net NPL and Advances 2.919576b vs. 1.746398b +67.177%
Liquidity Ratio 36.1% vs. 36.6% -0.500%
Conclusions
In the context of the new Rate Cap Landscape these are actually better tan satisfactory results.
FY Kenya Government securities 48.698795b vs. 45.805987b +6.315%
FY Loans and advances to customers (net) 168.509529b vs. 145.378553b +15.911%
FY Customers deposits 178.179795b vs. 165.082830b +7.934%
FY Total shareholders fund 42.388242b vs. 39.716371b +6.727%
FY Total interest income 28.121189b vs. 25.285748b +11.214%
FY Total interest expenses [5.786958b] vs. [4.875227b] +18.701%
FY Net interest income 22.334231b vs. 20.410521b +9.425%
FY Total operating income 31.684112b vs. 29.461760b +7.543%
FY Loan loss provision [3.927137b] vs. [1.765778b] +122.403%
FY Total operating expenses [20.831705b] vs. [17.388180b] +19.804%
FY Profit before tax and exceptional items 10.852407b vs. 12.073580b -10.114%
FY Profit after tax and exceptional items 7.399396b vs. 8.400582b -11.918%
EPS 1.36 vs. 1.55 -12.258%
Total dividend 1.00 share vs. 1.00 share
Total NPL and advances 8.782749b vs. 3.881678b +126.262%
Liquidity ratio 28.3% vs. 34.1% -5.800%
FY Loans and Advances [net] to Customers +15.91% to 168.509529b.
FY Total Assets +7.811% to 259.692012b
Customer Deposits +7.933% at 178.179795b
Final FY Dividend 80cents a share
Jeremy says We see a world where Digital Banking is Key BBKFY2016
Barclays Bank Kenya Gross NPLs Ratio increased to 6.5% from 3.6% vs an industry average of 9.1% as of Q3 2016 BBKFY2016
2016 is one of those years we will never forget in a short while SAYS Barclays Bank Kenya CEO BBKFY2016
Conclusions
The Dividend will underpin the price.
Barclays Bank of Kenya Limited H1 2016 results through 30th June 2016 vs. 30th June 2015
Loans and advances to customers (net) 153.304212b vs. 133.554804b +14.787%
Customers deposits 182.875680b vs. 163.473717b +11.869%
Total shareholders funds 39.103237b vs. 36.237869b +7.907%
H1 Loans and advances to customers income 10.177970b vs. 8.848247b +15.028%
H1 Total interest income 13.903457b vs. 12.166365b +14.278%
H1 Customer deposits expense [2.209507b] vs. [1.878009b] +17.652%
H1 Total interest expenses [2.806336b] vs. [2.126208b] +31.988%
H1 Net interest income 11.097121b vs. 10.040157b +10.527%
H1 Total non-interest income 5.137897b vs. 4.782011b +9.532%
H1 Total operating income 16.235018b vs. 14.822168b +9.532%
H1 Loan loss provision [2.009443b] vs. [585.975m] +242.923%
H1 Total operating expenses [10.411894b] vs. [8.386854b] +24.145%
H1 Profit before income tax and exceptional items 5.823124b vs. 6.435314b -9.513%
H1 Profit after tax and exceptional items 4.086689b vs. 4.552192b -10.226%
EPS 0.75 vs. 0.84 -10.714%
Dividends per share 0.20 vs. 0.20
Gross NPL and advances 8.764640b vs. 5.946804b +47.384%
Total NPL and advances 6.553440b vs. 4.686544b +39.835%
Liquidity ratio 36.6% vs. 41.1% -4.500%
Interim Dividend 20 cents a share unchanged
Conclusions
Expanded the Loan Book +14.787%
FY Kenya government securities 45.805987b vs. 51.032847b -10.242%
FY Loans and advances to customers (net) 145.378553b vs. 125.423371b +15.910%
FY Total assets 240.877020b vs. 225.842434b +6.657%
FY Customers deposits 165.082830b vs. 164.778726b +0.185%
FY Loans and advances to customers income 18.839544b vs. 16.707198b +12.763%
FY Government securities income 5.140534b vs. 4.586553b +12.078%
FY Total interest income 25.285748b vs. 22.941044b +10.221%
FY Customer deposit expense [4.275161b] vs. [2.912416b] +46.791%
FY Net interest income 20.410521b vs. 19.603614b +4.116%
FY Other fees and commission income 5.086219b vs. 4.827151b +5.367%
FY Total operating income 29.461760b vs. 28.288488b +4.148%
FY Loan loss provision [1.765778b] vs. [1.404959b] +25.682%
FY Staff costs [9.305169b] vs. [8.100426b] +14.873%
FY Other operating expenses [4.039908b] vs. [4.291941b] -5.872%
FY Total operating expenses [17.388180b] vs. [15.994964b] +8.710%
FY Profit before tax and exceptional items 12.073580b vs. 12.293524b -1.789%
FY Profit after tax and exceptional items 8.400582b vs. 8.387346b +0.158%
EPS 1.55 vs. 1.54 +0.649%
Dividend per share 1.00 vs. 1.00
FY Total non performing loans and advances 3.881678b vs. 4.554426b -14.771%
FY Loan loss provision [2.012924b] vs. [2.109563b] -4.581%
FY Net non performing loans 1.868754b vs. 2.444863b -23.564%
Liquidity ratio 34.1% vs. 44.2% -10.1%
Conclusions
Loans and Advances clocked +3.976% at H1 ended the Year at +12.763%
With the BAG shareholding now on the block, its going to be much more difficult growing and defending the Franchise.
First Half Earnings through June 2015 versus through June 2014
First Half total Assets 234.699871b versus 213.439675b +9.96%
First Half Loans and Advances 133.554804b versus 128.446955b +3.97%
First Half Total Interest Income 12.166365b versus 11.097427b
First Half Total Interest Expenses 2.126208b versus 1.407108b
First Half Net Interest Income 10.040157b versus 9.690319b
First Half Total Non Interest Income 4.782011b versus 4.260241b
First Half Total Operating Income 14.822168b versus 13.950560b
First Half Loan Loss Provision 585.975m versus 720.031m
First Half Staff Costs 4.529345b versus 3.909648b
First Half total Operating Expenses 8.386854b versus 7.838722b +6.99%
First Half Profit before Tax 6.435314b versus 6.111838b +5.29%
First Half Profit after Tax 4.552192b versus 4.233294b +7.533%
First Half EPS 0.84 versus 0.78 +7.69%
Interim Dividend 20cents a share
Conclusions
Assets +9.96% and Loans and Advances an anaemic 3.97%
However, I think Barclays can accelerate from here
Barclays Bank reports FY Earnings through 31st December 2014 versus through 31st December 2013
Full Year Total Assets 225.845434b versus 206.736932b +9.24%
Full Year Loans and Advances [net] to Customers 125.423371b versus 118.361911b +5.965%
Full Year Total Interest Income 22.941044b versus 21.296617b
Full Year Total Interest Expenses 3.337430b versus 2.437621b
Full Year Net Interest Income 19.603614b versus 18.858996b
Full Year Total Non Interest income 8.684874b versus 9.062943b
Full Year Total Operating Income 28.288488b versus 27.921939b
Full Year Total Operating Expenses 15.994964b versus 16.000500b
Full Year Profit Before Tax 12.293524b versus 11.921439b +3.1211%
Full Year Profit after Tax 8.387346b versus 7.622642b +10.03
Full Year Earnings Per share 1.54 versus 1.40 +10.00%
Full Year Dividend 1.00 versus 0.70 +42.85%
Conclusions
The +42.85% hike in the dividend is going to spike the price.
+5.965% Asset Base Expansion and excellent cost control.
The Network Effect is primed to kick in meaningfully
Barclays Bank first Half Earnings through June 2014 versus through June 2013
First Half Loans and Advances to Customers [Net] 128.446955b versus 107.050039b +19.987%
First Half Total Assets 213.166988b versus 185.562330b +14.876%
First Half Total Interest Income 11.097427b versus 10.457145b +6.1229%
First Half Total Interest Expenses 1.407108b versus 1.225780b
First Half Net Interest Income 9.690319b versus 9.231365b +4.971%
First Half Total non interest Income 4.260241b versus 4.491906b -5.157%
First Half total Operating Income 13.950560b versus 13.723271b
First Half Total Operating Expenses 7.838722b versus 7.460262b
First Half Profit before Tax before exceptional items 6.111838b versus 6.263009b -2.4137%
First Half exceptional items 0 versus [0.788259b]
First Half Profit before Tax after exceptional items 6.111838b versus 5.474750b +11.636%
First Half Profit after Tax 4.233294b versus 3.732269b +13.424%
First Half Earnings Per Share 0.78 versus 0.69 +13.043%
No interim Dividend
Company Commentary
Mr Jeremy Awori The Banking industry is currently undergoing unprecedented disruption resultant from a highly dynamic market environment. We have therefore amplifies our innovations agenda
Additionally we have set up an investment Banking Arm
Conclusions
Clearly Barclays is now positioning for Growth and that is evidenced in a 19.987% expansion in Loans and Advances to Customers.
However the 11.636% improvement in Profit before Tax was achieve off the back of a non recurrent exceptional Item which cost 0.788259b in 2013.
FY Results through Dec 2013 versus Dec 2012
FY Total Interest Income 21.296617b versus 21.041003b +1.214%
FY Total Interest Expenses 2.437621b versus 2.895835b -15.82%
FY Net Interest Income 18.858996b versus 18.145168b
Total Other Operating Income 9.062943b versus 9.279219b
Total Operating Income 27.921939b versus 27.424387b
Loan Loss Provision 1.222900b versus 144.376m +847%
FY Staff Costs 8.114254b versus 7.814148b +3.84%
Total Operating Expenses 16.000500b versus 14.404643b +11.078%
FY Profit before Tax 11.921439b versus 13.019744b
FY Profit after Tax and Exceptional Items 7.622642b versus 8.740703b -12.79%
FY EPS 1.40 versus 1.61 -13.043%
Final Dividend 0.50 a share
FY Dividend Pay Out 0.70 versus 1.00 -30.00%
Barclays Bank Kenya Managing Director Jeremy Awori said Whereas total income rose by 2% to reach 27.9b, operating costs increased by 9% loan impairment charges by 747% and a one off exceptional Restructuring cost of 788m was incurred leading a a 14% decline in profit before Tax compared to the previous Year.
Going Forward we see great opportunities for our Business.
Conclusions
These Results were a Known Known. I expect the One Africa Strategy to pay off via a Network Effect and think its likely Jeremy will adopt a more offensive Stance going forward.
FY Results through Dec 2012 versus Dec 2011
Assets
Loans and advances to Customers 104.204295b versus 99.072495b
Total Assets 184.825892b versus 165.993878b
Liabilities
Customer Deposits 137.915391b versus 124.207289b
Total Liabilities 155.242443b versus 139.000971b
Total Interest Income 21.041003b versus 17.632272b
Total Interest Expenses 2.895835b versus 1.296149b
Net Interest Income 18.145168b versus 16.336123b
Total Non Interest Income 9.279219b versus 10.001966b
Total Income 27.424387b versus 26.338089b
Operating Expenses
Loan Loss Provision 0.144376b versus 0.728680b -80.186%
Total Operating Expenses 14.404643b versus 14.267534b
FY Profit Before Tax 13.019744b versus 12.070555b +7.86367%
FY Profit After Tax 8.740703b versus 8.112637b +7.741%
FY Earnings Per Share 1.61 versus 1.49 +8.0536%
FY Dividend 70 cents a share
[Barclays paid an Interim of 30cents a share]
Conclusions
Barclays has reported a +7.741% FY PAT Increase.
The Loan Loss Provision of 80.186% was helpful
The Total Dividend Pay Out inclusive of the Interim is 1 shilling a share.
The Dividend Pay Out Ratio is 62.111%
Swot Analysis H1 2012 versus H1 2011
Loans and Advances to Customers Net 101.100229b versus 99.072495b End Dec 2011 +2.0467%
Total Interest Income 10.63446b versus 7.807137b
Total Interest Expenses 1.661076b versus 0.413748b +301.47%
Loan Loss Provision 0.458922b versus 0.392580b
Staff Costs 3.808989b versus 3.706186b +2.77%
Total Operating Expenses 7.382713b versus 7.135333b +3.466%
Profit Before Tax 6.313685b versus 5.345672b +18.108%
Profit After Tax 4.267039b versus 3.641244b +17.186%
Earnings Per Share 0.79 versus 0.67 +17.1904%
Dividend 0.30 versus 0.20 +50%
Conclusions
Loan Growth was 2.0467% since End Dec which confirms the Macro Backdrop and its Complexities.
Staff Costs held to +2.77% speaks to Barclays Capacity to play solid Defence.
Raising The Interim by 50% is a Statement of Muscular Intent.
If I were Pairs Trading I would want to be long Barclays Kenya versus the PLC.
Swot Analysis FY 2011 versus FY 2010
Government Securities 37.598365b versus 55.995929b
Total Assets 167.304940b versus 172.090915b
Total Interest Income 17.632272b versus 17.130554b
Total Income 26.338089b versus 26.023691b
Staff Costs 7.346856b versus 8.398113b -12.5177%
Profit Before Tax 12.012555b versus 13.552702b -11.3641%
Profit after Tax 8.072637b versus 10.598962b -23.8355888%
Earnings Per Share 1.49 versus 1.95 -23.589%
Special Dividend 0.60
Final Dividend 0.70
Interim Dividend paid October 7 2011 0.20
Total 1.50 Yield 12.096%
Company Commentary
Underlying Profits excluding One Offs up 11%
Loan Loss Provision 0.5b versus 0.7b last time
Adan Mohamed focus on building a solid and resilient Business
Conclusions
The Headline PAT Decline of 23.8355888% is surely going to catch the Eye. However, look lower down and You will note that They booked an Extraordinary Gain the Previous FY and if You strip that out You get a Positive Number. Barclays Bank have been playing Defence and this is evidenced in the Staff Costs which fell 12.5177% Year on Year. The PE is now 7.798 and the Yield [Including the Interim] is 12.096% which is high and handsome.
Swot Analysis 6 Months to June 2011 versus 6 Months to June 2010
Profit Before Tax 5.345672b versus 4.749438 +13%
EPS 0.67 versus 0.68 -1.47%
Operating Expenses declined by a Billion
Half Year Dividend of 20 cents a share worth 1.29% of Yield.
Conclusions
Last FY Barclays bagged a windfall Gain from the Sale of its Custody Business. Through 2010 the Growth Trajectory [stripping out the Custody Gain] was just shy of 20%. PBT is now running at 13% and EPS at -1.47%. Clearly, the Turbulence seen in the Bond and Foreign Exchange Markets, have exacted a Price on the core underlying Organic Growth Rate. I see Barclays as having had to play Defence this Year and in that context the Results are a Defence Play. At a PE of 10.764 It looks fairly priced and the Interim Dividend is a well timed Sweetener.
Full Year 2010 versus Full Year 2009 Swot Analysis
Profit Before Tax 13.553b versus 9.002b +51%
Underlying Profits excluding Custody Sale 10.775b +19.695%
Provisions for Loan Impairment 1.199b versus 0.512b
EPS 7.80 versus 4.50 +73.33%
Final Dividend 4.70 Total Dividend 5.45 +118%
Share Split 4 for every 1 Held.
Total Assets 172.69b versus 165.151b
Total Interest Income 17.13b versus 17.516b
PAT 10.598b versus 6.091b
Conclusions
Barclays beat the Street Estimates by a Mile. |
