Growth in Non-Interest Income Bolster Gross Earnings: Gross earnings continue to grow at a slow pace for the bank. By Q1:2019, gross earnings grew marginally by 0.42%, supported by the growth in non-interest income by 17.77% which offset the decline in interest income (-7.81%). Interest income was pressured by the lower yield on earning assets as well as the decrease in earnings assets. In line with our expectation, the cost of the $200m syndicated loan it took in 2018 weighed in on interest expenses which increased by 7.11%. Hence, the Net Interest Margin (NIM) declined to 4.80% from 5.90% in FY2018; we hold the premise that the bank needs to improve its NIM which has been on a decline by increasing its earning asset base. For 2019, we maintain our projected growth of 10.94%, 11.05% and 10.72% for Interest income, non-interest income, and gross earnings respectively. Kindly find attached the full report.
Earnings Update- ETI: Q1 2019.
Growth in Non-Interest Income Bolster Gross Earnings: Gross earnings continue to grow at a slow pace for the bank. By Q1:2019, gross earnings grew marginally by 0.42%, supported by the growth in non-interest income by 17.77% which offset the decline in interest income (-7.81%). Interest income was pressured by the lower yield on earning assets as well as the decrease in earnings assets. In line with our expectation, the cost of the $200m syndicated loan it took in 2018 weighed in on interest expenses which increased by 7.11%. Hence, the Net Interest Margin (NIM) declined to 4.80% from 5.90% in FY2018; we hold the premise that the bank needs to improve its NIM which has been on a decline by increasing its earning asset base. For 2019, we maintain our projected growth of 10.94%, 11.05% and 10.72% for Interest income, non-interest income, and gross earnings respectively. Kindly find attached the full report.