• KCB Group
  • XUGA:KCB KAMPALA/Uganda
  • 1379.00 UGX
  • 0.00 0.00%
  • As of 2017/05/26
Refreshing....
  • About the Company
  • KCB Bank Group is East and Central Africa's oldest and largest commercial bank ,listed on the Nairobi, Dar es Salaam , Uganda and Rwanda Securities Exchange. KCB has regional network of over 236 branches, 6 713 agents and 955 ATMs, in six countries.
  • KCB Group Plc, formerly KCB Group Limited, is a financial institution. The Bank provides corporate and retail banking and Bancassurance services in various parts of the country.

    It offers corporate and retail banking services. Its segments include Retail banking, Corporate banking, Mortgages and Treasury. The Retail banking segment incorporates banking services, such as customer current accounts, savings and fixed deposits to individuals. Retail lending are mainly consumer loans and mortgages based lending. The Corporate banking segment incorporates banking services, such as current accounts, fixed deposits, overdrafts, loans and other credit facilities both in local and foreign currencies. The Mortgages segment incorporates the provision of mortgage finance. The Treasury segment operates the Company’s funds management activities. Its other operations comprise of trade finance and forex business.

    It also participates in investments in Treasury Bills and Bonds from the Central Banks.

    Website

    https://kcbbankgroup.com/

    Address

    P.O. Box 48400
    Nairobi, 00100
    Kenya

flip phone to landscape for better view
After a low of $149m in net revenues in 2013, net revenues have grown 7.7% this year slower than last year when they grew at 10%. With this growth they have not recovered to their 5-year peak of £170m
Revenue per year in US $ The higher, the better.
Profits have increased for the last 3 years $47.3m but have not recovered to peak of $51.8m in 2012
Profits per year in US $ The higher, the better.
Profit margins have remained below 30% despite increase in profits indicating a struggle to keep control of costs.
Profit Margin compared to competitors The higher, the better.
Stanbic has maintained return on assets above 3% which is double the global average but is still below the local average.
Management of Assets compared to competitors The higher, the better.
Costs as a percentage of revenue is at 62.82% significantly lower than its peak of 69.85% in 2013. This cost percentage is a lot better than the local average but worse than African average.
Management of Costs compared to competitors The lower, the better.
Cash generation by Stanbic has halved since 2012 but better than 2013 when cash generation was negative due to increased losses in government securities.
Cash Generation compared to competitors The higher, the better.
Assets are currently 90% financed by banks, this may seem high but is similar for both local and African banks. This dependence on debt has reduced slightly over the last few years
Level of Debt compared to competitors The lower, the better.
Stanbic Bank can comfortably cover its immediate debts similar to all local banks. The margin between the liquid assets and current liabilities for Stanbic is lower than other local banks but this has been driven by a drastic increase in customer deposits.
Ability to pay debt compared to competitors The higher, the better.
The available cash (working capital) has increased by 70% over the last 5 years from $112m to $191m. This shows that Stanbic has become more efficient and healthier. This enables that Stanbic to invest more money within the business.
Liquidity/Cash Availability compared to competitors The higher, the better.
Revenues have grown slower than other local banks but the growth in profits has been faster than its local peers. In 2013, Stanbic experienced a 12% drop in profits and 33% drop in revenues, similar to other local banks - this drop in earnings was due to slowdown following the 2011 Ugandan election.
Revenue Growth compared to competitors The higher, the better.
Profit Growth compared to competitors The higher, the better.
Stanbic continues to have pay out the highest level of dividends in Uganda and Africa. Currently Stanbic pays out 3% of its share price but this is half of what it paid out the previous year. This is different from other local banks where dividends have gone back.
Despite Stanbic having high levels of dividend, this drop in dividend yield raises concern about how long this will be sustained.
Return on Equity compared to competitors The higher, the better.
Dividend Yield compared to competitors The higher, the better.
Stanbic Uganda has increased the investment in the business since 2011, and is doing it at the highsest levels both locally and in Africa.
Level of Investment per year in US $ The higher, the better.
Investment Ratio compared to competitors The higher, the better.

A law capping interest rates continues to pile pressure on Kenyan banks, with at least three banks posting a drop in earnings in the first quarter of this year.

NIC Bank, Stanbic Bank and Kenya Commercial Bank (KCB) posted 3.9 percent, 9.3 percent and 1.9 percent decline in profit, with the performance attributed to the capping of loan rates.

Kenya introduced the law to cap interest rates in the third quarter of 2016, with the move aimed at deepening access to credit especially among small borrowers.

The rates were capped at 4 percent above the Central Bank Rate which currently stands at 10 percent. Banks, therefore, are currently charging borrowers a maximum of 14 percent, down from between 18 and 28 percent.

The result, however, is that commercial banks are reeling from the effects of the reduced earnings as the law leads to unintended outcomes, including layoffs and slow credit growth.

Financial results of the three banks released last week indicated the squeeze the banks are facing following the implementation of the law. KCB posted a 1.9 decline in core earnings per share to 14.4 billion U.S. dollars from 15 billion dollars.

The Capital Markets Authority (CMA) has expressed concern over the overwhelming dominance of five of the country’s top firms at the bourse.

The regulator in a new report released yesterday said five companies accounted for two-thirds of the total market capitalisation at the Nairobi Securities Exchange (NSE) in the three months to March, exposing the stock market to concentration risk.

The combined market capitalisation of the stocks of Safaricom, East African Breweries, Kenya Commercial Bank (KCB), Equity Bank and British American Tobacco (BAT), the Capital Markets Soundness Report showed, accounted for about 64 per cent of the market capitalisation.

“The top five companies accounted for between 63.7 per cent and 65 per cent of the market capitalisation, which is a heavy level of concentration on a few counters and exposes the market to concentration risks,” said CMA Chief Executive Paul Muthaura during the the report’s launch in Nairobi.

There are 67 companies listed at the NSE. The Capital Markets Soundness Report is a publication on capital markets stability indicators and industry risks.

Kenya Commercial Bank (KCB) Group’s net profit for quarter one of this year has dropped to Sh4.5 billion.

The 1.9 per cent decline from Sh4.6 billion posted in the same period last year came as interest rates, a tough economic environment and hyperinflation in Sudan started taking toll on Kenya’s largest lender by asset base. The drop in profitability came despite a 14 per cent increase in the uptake of loans.

The group’s non-interest income rose 20.3 per cent to Sh5.6 billion, up from Sh4.6 billion in the first quarter of last year, underscoring the growing importance of income derived from alternative revenue channels.

Challenging environment

Last year, the bank saw its net profit grow by 0.5 per cent in its full-year earnings to Sh19.72 billion, the slowest growth in seven years.

Kenya’s top 10 banks registered a 10.8 per cent growth in net earnings to Sh93.81 billion for the financial year ended December 31, 2016.

The growth was despite four of the lenders – Equity Bank, Barclays Bank of Kenya (BBK), Stanbic Bank and NIC Bank – registering a drop in profits after tax.

Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank remained the top three most profitable lenders respectively and also the only ones with double-digit-billions profits.

However, for the first time in over 10 years, Equity recorded a drop (5.9 per cent) in profits. Despite KCB Group recording a 0.5 per cent growth in profits, the slowest pace in seven years, KCB Bank saw its after-tax profit soar by 19.9 per cent to Sh19.78 billion.

At the same time, Co-operative Bank registered a 24.6 per cent growth in profit to Sh13.05 billion.

Money transfer firm WorldRemit says that it will set up an office in Kenya this year as it seeks to diversify its business to intra-African remittances.

Kenya counts as WorldRemit’s second largest receiving market after the Philippines. About 93 per cent of transfers to Kenya are received via mobile money accounts.

The UK-based company said that the Nairobi office will focus on growing the WorldRemit brand and setting the stage for cross-border mobile money transfer services within the region.

“Because we have a treasury platform with many African currencies and because we’re connected to most of the major mobile money platforms, it is easier for us to help cross border transfers in Africa… this is part of the business we’re looking at now,” said WorldRemit chief executive Ismail Ahmed. WorldRemit said that it can execute money transfers directly to 112 million mobile money accounts globally.

The company has already been making some strides in intra-African transfers after it signed a deal with Kenya Commercial Bank to enable real-time money transfers from the diaspora to Kenya and five other countries in the East African region.

The Nairobi office will be the company’s second in Africa. 

KCB Group Plc, formerly KCB Group Limited, is a financial institution. The Bank provides corporate and retail banking and Bancassurance services in various parts of the country.

It offers corporate and retail banking services. Its segments include Retail banking, Corporate banking, Mortgages and Treasury. The Retail banking segment incorporates banking services, such as customer current accounts, savings and fixed deposits to individuals. Retail lending are mainly consumer loans and mortgages based lending. The Corporate banking segment incorporates banking services, such as current accounts, fixed deposits, overdrafts, loans and other credit facilities both in local and foreign currencies. The Mortgages segment incorporates the provision of mortgage finance. The Treasury segment operates the Company’s funds management activities. Its other operations comprise of trade finance and forex business.

It also participates in investments in Treasury Bills and Bonds from the Central Banks.

Website

https://kcbbankgroup.com/

Address

P.O. Box 48400
Nairobi, 00100
Kenya

Kampala — The interconnectedness of the Uganda Securities Exchange (USE) to the Nairobi Securities Exchange (NSE) has a lot to do with the dismal market performance in 2016.

The market had started the year with a capitalisation of Shs24.5 trillion but by Wednesday December 28, with only two days left to trading, it had fallen to Shs20.3 trillion.

The USE has eight cross-listed firms from the NSE, especially on account of commercial banks in Kenya losing value in their shareholding. Kenya Airways, Jubilee Holdings, Centum Investments, KCB Group, Equity Group, UCHUMI, Nation Media Group and East African Breweries are the eight cross-listed companies.

Cross-listing refers to where company shares are floated on a different stock exchange – in this case, a foreign country – after being listed on the primary stock exchange. In this case, the eight Kenyan companies are listed on the primary market (NSE) but cross-listed on the secondary market (USE).

These companies do have subsidiaries that do business in Uganda.

Capping interest rates On August 24, 2016 president Uhuru Kenyatta signed into law a law that allows Kenya to cap interest rates.The following day, listed Kenyan banks saw the value of their shares tumbled sending the stock markets in Kenya […]

Equity Group’s liquidity ratio has more than doubled its minimum statutory requirement after it got an additional Sh35 billion customer deposits in the last financial year.

According to its financial statements for the year ended December 31, 2016, the group – which operates in six countries – benefited from the deposit flight that saw customers move money to banks they considered more stable.

Equity’s liquidity ratio, a yardstick for measuring a lender’s ability to meet short-term liabilities, is now at 47.6 per cent against the statutory minimum of 20 per cent.

This is from 33.2 per cent at a similar time last year.

Last year, Dubai Bank, Imperial Bank and Chase Bank faced serious integrity crises, forcing the regulator to put them under receivership.

This resulted in panic withdrawals, leading to skewed distribution of deposits among the 43 banks. ALSO READ: KCB forced into 300pc pay rise for S Sudan staff after inflation woes “Banks were initially perceived to be of the same risk, but after the receivership, two curves emerged on the interbank (market) and banks perceived to be of high risk were borrowing at much higher rate. Customers had to move money to where they felt safe,” said Equity Group Chief Executive. 

Kenya’s central bank on Thursday invited investors interested in buying a stake in Chase Bank to submit their bids, with the aim of concluding the transaction by the end of September. The mid-sized lender is under receivership and was temporarily closed in April 2016 by the regulator after an unexplained loss of billions of Kenyan shillings. It is now in the hands of Kenya Deposit Insurance Corporation (KDIC), a state body that protects depositors in the case of a bank failure, and the central bank has said it wants to find a strategic investor for Chase but has not said what size stake it will sell. KCB Group <KCB.NR> was appointed its manager and the central bank had promised to return the bank to normal operations by the end of the first quarter of 2017 but this has been pushed back. Bidders will be required to provide an array of information including an understanding of the local banking industry, details of shareholders, capital available and the preferred transaction mode, by April 21, the central bank said. “No information beyond what is already available in the public domain will be made available. 

NMG,  Kenya Commercial Bank (KCB), I&M Bank and Equity Bank have outperformed their listed peers in capital gains at the Nairobi bourse since mid-February, riding on healthy dividends and positive corporate announcements.

Banks over the past six weeks, been releasing their full-year results. In the period, the KCB share has gained 28.2 per cent to Sh33, Equity is up 21.5 per cent to Sh32.50 and I&M Bank 20.1 per cent to Sh92.50.

KCB announced three weeks ago it will pay shareholders a dividend of Sh3 per share for the 2016 financial year, up from Sh2 per share in 2015. This was despite reporting a flat net profit of Sh19.7 billion for the year.

The Sh9.1 billion total dividend pay-out is the largest ever by a financial services firm in the country.

“The rebound in some bank stocks is a reaction to the full year 2016 results which have raised investors’ appetite due to the improved dividend yields,” said Kingdom Securities senior analyst Mercyline Gatebi.

“However, the price rebound is likely to be short-term in nature as the fundamentals don’t support the same.