By Research Team, Mar 22, 2020
Valuation Summary
Key Highlights FY’2019
Income Statement
Balance Sheet
Key Take-Outs:
Going forward, we expect the bank’s growth to be driven by:
Below is a summary of the bank’s performance:
Balance Sheet Items |
FY'2018 |
FY'2019 |
y/y change |
FY'2019e |
Projected y/y change |
Variance in Growth Actual vs. Expected |
Net loans |
118.7 |
128.7 |
8.5% |
128.1 |
8.0% |
0.5% |
Total Assets |
285.4 |
302.1 |
5.9% |
289.8 |
1.5% |
4.3% |
Customer Deposits |
224.3 |
228.4 |
1.8% |
228.8 |
2.0% |
(0.2%) |
Total Liabilities |
238.8 |
254.4 |
6.5% |
246.3 |
3.2% |
3.4% |
Shareholder's Funds |
46.6 |
47.8 |
2.4% |
43.5 |
(6.8%) |
9.2% |
Balance Sheet Ratios |
FY'2018 |
FY'2019 |
y/y change |
Loan to deposit ratio |
52.9% |
56.3% |
3.4% |
Return on Average Equity |
17.5% |
17.5% |
(0.1%) |
Return on Average Assets |
2.8% |
2.8% |
(0.0%) |
Income Statement |
FY'2018 |
FY'2019 |
y/y change |
FY'2019e |
Projected y/y change |
Variance in Growth Actual vs. Expected |
Net Interest Income |
19.4 |
19.5 |
0.4% |
20.1 |
3.8% |
(3.4%) |
Net non-Interest Income |
9.20 |
9.23 |
0.3% |
9.8 |
6.6% |
(6.3%) |
Total Operating income |
28.6 |
28.7 |
0.4% |
29.9 |
4.7% |
(4.3%) |
Loan Loss provision |
1.9 |
0.6 |
(70.3%) |
1.9 |
(1.6%) |
(68.8%) |
Total Operating expenses |
16.8 |
16.5 |
(1.3%) |
16.9 |
0.9% |
(2.2%) |
Profit before tax |
11.8 |
12.2 |
2.8% |
13.0 |
10.1% |
(7.3%) |
Profit after tax |
8.1 |
8.2 |
1.7% |
8.9 |
9.8% |
(8.1%) |
Core EPS |
23.6 |
24.0 |
1.7% |
25.9 |
9.8% |
(8.1%) |
Income Statement Ratios |
FY'2018 |
FY'2019 |
y/y change |
Yield from interest-earning assets |
10.5% |
9.6% |
(0.8%) |
Cost of funding |
3.3% |
2.7% |
(0.6%) |
Net Interest Spread |
7.1% |
7.0% |
(0.2%) |
Net Interest Margin |
7.5% |
7.4% |
(0.1%) |
Cost of Risk |
6.8% |
2.0% |
(4.8%) |
Net Interest Income as % of operating income |
67.8% |
67.8% |
0.0% |
Non-Funded Income as a % of operating income |
32.2% |
32.2% |
0.0% |
Cost to Income Ratio |
58.6% |
57.6% |
(1.0%) |
Capital Adequacy Ratios |
FY'2018 |
FY'2019 |
Core Capital/Total Liabilities |
15.8% |
15.6% |
Minimum Statutory ratio |
8.0% |
8.0% |
Excess |
7.8% |
7.6% |
Core Capital/Total Risk Weighted Assets |
16.5% |
14.7% |
Minimum Statutory ratio |
10.5% |
10.5% |
Excess |
6.0% |
4.2% |
Total Capital/Total Risk Weighted Assets |
19.5% |
17.7% |
Minimum Statutory ratio |
14.5% |
14.5% |
Excess |
5.0% |
3.2% |
Liquidity Ratio |
66.6% |
62.6% |
Minimum Statutory ratio |
20.0% |
20.0% |
Excess |
46.6% |
42.6% |
Adjusted core capital/ total deposit liabilities |
15.9% |
15.7% |
Adjusted core capital/ total risk weighted assets |
16.6% |
14.8% |
Adjusted total capital/ total risk weighted assets |
19.7% |
17.8% |