Profile

National Bank of Kenya Limited is a Kenya-based company engaged in the provision of banking, bank assurance, financial and related services.

The Bank operates in the segments: Retail Banking, Business Banking, Islamic Banking, Corporate & Institutional Banking, Treasury, Bancassurance, Investor services and Chinese Business.

It offers solutions to corporates, institutions, businesses and retail customers.

A spectrum of products offered by the bank includes financing, trade services, mortgages, account services, custody services, Islamic banking and cards services, among others.

It has a network of approximately 75 branches outlets, 140 automated teller machines (ATMs) and electronic channels of mobile and Internet banking across Kenya.

Its wholly owned subsidiaries include Natbank Trustee and Investment Services Limited, Kenya National Capital Corporation Limited, and NBK Insurance Agency Limited.

Financials

For the nine months ended 30 September 2015, National Bank of Kenya Limited total interest income increased by 27.7% to KES9.75B.

Net interest income increased by 15% to KES 5.697B. Loan loss provision KES 586M.

Value of government securities held to maturity fell by 11.9% to KES 23B this due to the demand of short term high interest gov’t securities.

Profit before Tax and Exceptional Items went up by 79.5%.

EPS went up by 120.5% to KES 8.05.

Cash and cash equivalents are negative KES 1.647B as at 30 September 2015.

No interim dividend was declared.

Top Ten Shareholders

1. •BOARD OF TRUSTEES NATIONAL SOCIAL SECURITY FUND – 48.1%
2. •THE PERMANENT SECRETARY TO THE TREASURY – 22.5%
3. •KENYA REINSURANCE CORPORATION LIMITED – 1.4%
4. •BEST INVESTMENT DECISIONS LTD – 0.7%
5. •CO-OP BANK CUSTODY A/C 4003A – 0.6%
6. •NIC CUSTODIAL SERVICES A/C 077 – 0.4%
7. •CRAYSELL INVESTMENTS LIMITED – 0.4%
8. •EQUITY NOMINEE LTD A/C 00084 – 0.4%
9. •NATBANK TRUSTEE & INVESTMENT SERVICES LTD A/C 1 – 0.3%
10. •ENG EPHRAIM MWANGI MAINA – 0.3%

Note: This % figures can change anytime.

Share Price

On Friday, National Bank of Kenya Ltd closed at 17.00, 17.24% above the 52 week low of 14.50 set on Oct 23, 2015. NBK is on a 3 year low.

Analysis

NBK counter calls for the brave and shrewd investor.

Based on our short term Full Year EPS forecast of KES 5.25 per share we project a cheap p/e ratio of 3 times compared to an average of 11 times from global peers.

Investment professionals give NBK a sell recommendation. On the contrarian side is it the best time to buy? 3 year low perhaps?

Getting in this counter requires pure guts.

Profile

National Bank of Kenya Limited is a Kenya-based company engaged in the provision of banking, bank assurance, financial and related services.

The Bank operates in the segments: Retail Banking, Business Banking, Islamic Banking, Corporate & Institutional Banking, Treasury, Bancassurance, Investor services and Chinese Business.

It offers solutions to corporates, institutions, businesses and retail customers.

A spectrum of products offered by the bank includes financing, trade services, mortgages, account services, custody services, Islamic banking and cards services, among others.

It has a network of approximately 75 branches outlets, 140 automated teller machines (ATMs) and electronic channels of mobile and Internet banking across Kenya.

Its wholly owned subsidiaries include Natbank Trustee and Investment Services Limited, Kenya National Capital Corporation Limited, and NBK Insurance Agency Limited.

Financials

For the nine months ended 30 September 2015, National Bank of Kenya Limited total interest income increased by 27.7% to KES9.75B.

Net interest income increased by 15% to KES 5.697B. Loan loss provision KES 586M.

Value of government securities held to maturity fell by 11.9% to KES 23B this due to the demand of short term high interest gov’t securities.

Profit before Tax and Exceptional Items went up by 79.5%.

EPS went up by 120.5% to KES 8.05.

Cash and cash equivalents are negative KES 1.647B as at 30 September 2015.

No interim dividend was declared.

Top Ten Shareholders

1. •BOARD OF TRUSTEES NATIONAL SOCIAL SECURITY FUND – 48.1%
2. •THE PERMANENT SECRETARY TO THE TREASURY – 22.5%
3. •KENYA REINSURANCE CORPORATION LIMITED – 1.4%
4. •BEST INVESTMENT DECISIONS LTD – 0.7%
5. •CO-OP BANK CUSTODY A/C 4003A – 0.6%
6. •NIC CUSTODIAL SERVICES A/C 077 – 0.4%
7. •CRAYSELL INVESTMENTS LIMITED – 0.4%
8. •EQUITY NOMINEE LTD A/C 00084 – 0.4%
9. •NATBANK TRUSTEE & INVESTMENT SERVICES LTD A/C 1 – 0.3%
10. •ENG EPHRAIM MWANGI MAINA – 0.3%

Note: This % figures can change anytime.

Share Price

On Friday, National Bank of Kenya Ltd closed at 17.00, 17.24% above the 52 week low of 14.50 set on Oct 23, 2015. NBK is on a 3 year low.

Analysis

NBK counter calls for the brave and shrewd investor.

Based on our short term Full Year EPS forecast of KES 5.25 per share we project a cheap p/e ratio of 3 times compared to an average of 11 times from global peers.

Investment professionals give NBK a sell recommendation. On the contrarian side is it the best time to buy? 3 year low perhaps?

Getting in this counter requires pure guts.