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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.

INVESTMENT CONSIDERATIONS
  • KCB’s mobile transactions using KCB-MPesa, KCB Mobi-Bank, KCB Pepea Card and Inua Jamii platforms increased by 75% from September 2014.
  • 135% agency banking growth with 63% alternative transactions vs 37% branch transactions in Q3 2015. In comparison, Q3 2014 had 58% alternative transactions vs 42% branch banking. Merchant banking increased by 13%, mobile banking by 75% and ATM use rose by 6% compared to Q3 2014.
  • Deepening financial inclusion with KCB-Mpesa which now has over four million registered customers.
  • Strong asset book driven by 32% growth in advances; net loans and advances grew from KSh284Mn in FY 2014 to KSh348Mn in Q3 2015.
  • Non-performing loans are below 7% which is attributed to robust credit management.
  • Strong funding base driven by 35% growth in deposits; deposits were KSh377Bn in FY 2014 and KSh471Bn in Q3 2015.
  • 28% Assets contribution from International Subsidiaries with 17% from South Sudan, 4% from Uganda, 3% each from Rwanda and Tanzania and 1% from Burundi.
  • 12% PBT contribution from International Subsidiaries in South Sudan, Rwanda, Uganda and Tanzania.
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