Here are our views on the news making headlines today for Kenya:
Both EQBNK KN and COOP KN announced their Q1:15 results yesterday. COOP KN delivered 29.8%y/y growth in PBT to KES 4.5b outperforming EQBNK KN which posted 12.0%y/y growth to KES 6.1b. COOP KN seems to have won the match having given EQBNK KN several knockouts as highlighted below;
- COOP KN’s total interest income grew by 22.8%y/y versus EQBNK KN’s growth of 12.5%y/y. In addition, COOP KN’s interest expense grew at a slower pace (26.7%y/y) compared to EQBNK KN’s growth (31.9%). Overall, COOP KN’s net interest income grew by 21.3% vs EQBNK KN’s growth of 8.6%.
- In terms of efficiency, COOP KN’s CTI ratio improved to 49.4% in Mar-15 from 55.6% in Mar-14 outweighing EQBNK KN’s 53.9% in Mar-15 which is a slight deterioration from 51.5% in Mar-14.
- Nevertheless, EQBNK KN gave COOP KN a knockout on book quality which maintained at 1.6% versus EQBNK KN’s 2.8% which was a slight corrosion from 2.5% in Mar-14.