This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Investments Considerations
  • We re-rate our coverage on Equity Holdings from HOLD to ACCUMULATE based on a fair value estimate of KES 46.09, an Expected Return of +11.7% from the current market price of KES 41.25. Our investment case is informed by the Group’s loan book growth momentum which is driven by aggressive product/service marketing, product innovation and better exploitation of its value chain across all its branches in the region. With sufficient capital buffers, we believe that this momentum will be maintained thus we forecast a 3-year Compound Annual Growth Rate of 15.3% and 14.8% in customer deposits and advances respectively in FY 17(OMS estimates.)
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