Prime Bank Limited

Kenya Bank Analysis

Security class
Long term
Short term

September 2008

Rating scale

Currency

Rating

Rating watch

Expiry date

National
National

Kshs
Kshs

BBB+
A2

No

07/2009

Financial data:

Rating rationale

(US$m Comparative)
31/12/07 31/03/08**
Kshs/US$ (avg.)
67.8
67.7
Kshs/US$ (close)
63.9
64.2
Total assets
248.1
293.2
Tier II capital
12.9
12.7
Tier I capital
17.2
23.6
Net advances
98.6
118.8
Liquid assets
105.3
119.7
Operating income
12.1
4.0
NPAT
3.5
1.3
Market cap
n.a.
Market share*
1.6%

The rating is based on the following key factors:

*
Calculated as a % of total industry assets as at
31 December 2007.
**
Relates to the first quarter results post-merger.
Relates to the calculation of regulatory capital
as per CBK submissions.

Fundamentals:
Operating under a commercial
banking license, Prime Bank Limited
(Prime) was founded in 1992. The
Kantaria family primarily owns the
bank with a 53% stake as at endMarch 2008. The bank offers a broad
range of retail and corporate banking
services, although business is
considered to be primarily corporate.
Correspondent relationships with
international banks enable Prime to
offer trade finance and foreign
exchange services. Operations were
consolidated through a merger with
its sister company Prime Capital &
Credit Limited in January 2008.

GCR contacts:
Dirk Greeff
dgreeff@globalratings.net
+27 11 784 - 1771
Paul Greeff
greeff@globalratings.net
+27 11 784 - 1771
Website: www.globalratings.net

The recent merger between Prime and its sister company, Prime
Capital & Credit (Prime Capital), saw the financier join a list of
several financial institutions that have taken the consolidation
route in cognisance of the changing regulatory environment in
Kenya. The new and larger entity is set to benefit from lower
operating costs and improved efficiencies as the need for separate
banking licenses and management teams has been eliminated.
Notwithstanding a 17% rise in risk-weighted assets over the first
quarter, capitalisation ratios remained well above statutory
requirements. In this regard, the banks core capital to risk
weighted assets, and total deposits, increased to 17% and 11%
respectively (Prime F07: 15% and 10% respectively).
Asset quality indicators for the combined entity showed mixed
results when compared to Primes pre-consolidated position. The
capital value in arrears position declined to 7.2% of gross loans
(Prime F07: 8.1%), while the proportion of net non-performing
loans (NPLs) to net loans remained unchanged at 3%. However,
net NPLs accounted for a higher 11% of total capital (Prime F07:
10%).
Key liquidity indicators weakened somewhat in response to the
banks enlarged asset base. As such, cash and liquid assets
declined to 41% and 58% as a percentage of total assets and
deposits respectively (Prime F07: 43% and 61% respectively).
Cognisance was taken of Prime Capitals poor earnings
performance in 2007 (profits declined by 44%), whilst its parent
company, Prime, recorded a 73% rise in after tax earnings
(NPAT), exceeding year-end expectations by 20%.
Financial flexibility
The bank is primarily funded via a combination of customer deposits,
retained earnings and borrowings. Following the merger, the bank
decided to settle all outstanding balances on its trade finance facilities
(totalling US$10.9m), while also reducing interbank borrowings to
negligible levels. That saw deposits emerge as the consolidated
banks main funding source with Private Banking and Corporate
deposits accounting for 74% and 26% of total funding respectively.
Overall, the banks consolidated deposit base totalled Kshs13.3bn
(Prime F07: Kshs11.1bn) as at 31 March 2008, while total capital and
reserves was recorded at Kshs2.3bn (Prime F07: Kshs1.9bn).

This document is confidential and issued for the information of clients only. It is subject to copyright and may not be reproduced in whole or
in part without the written permission of Global Credit Rating Co. (GCR). The credit ratings and other opinions contained herein are,
and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any
securities. No warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular
purpose of any such rating or other opinion or information is given or made by GCR in any form or manner whatsoever.

Corporate profile

Operating environment

Prime was established in April 1992 and was licensed

as a commercial bank during that same year. Prime
Capital commenced operations as a registered finance
company in 1998. These two entities merged their
respective operations, with effect from 1 January
2008, thereby forming a larger, better capitalised and
more efficient business. Recent developments saw
Prime being licensed by the Capital Markets
Authority (CMA) of Kenya as an authorised
depository, approved to hold securities, financial
instruments or documents of title to assets.

Economic overview
Kenyas economy grew by an estimated 6.4% in 2007
compared to 6% in 2006. Agriculture (accounting for
more than a quarter of the economy), manufacturing,
telecommunications and tourism have underpinned
growth in the past three years, albeit erratic weather
patterns significantly reduced agriculture production
at times. Whilst the economys outlook remains
positive, growth estimates for 2008 have had to be
revised downwards to 4% (previously 7%) as a direct
consequence of the disruptions caused by the postelection violence. Kenya's annual inflation reflected a
steady climb throughout 2007, buoyed by higher
food, transport and energy prices. This was despite a
marked decline in the first quarter of 2007, when the
y-o-y growth in CPI reduced to 5.9% in March 2007
from 15.6% in March 2006. Inflation soared to 12%
in December 2007. Overall, average inflation for the
year amounted to 9.8%. Key interest rates, notably
Central Bank of Kenyas (CBK) overdraft rate and
the 91-day Treasury bill (T-bill) rate displayed
mixed trends throughout 2007, with the latter
recording a 209 basis points increase between
December 2006 and November 2007, mainly on the
back of reduced liquidity in the run up to the
elections.

Primes business strategy comprises three main areas

of operation as detailed below.
Personal Banking

Savings accounts
Current accounts
FX accounts
Call deposits
Fixed deposits
Visa credit card

Corporate Banking

Current accounts
FX accounts
Call deposits
Fixed deposits
Visa credit card
Asset Finance

Other Banking

Treasury services
Custodial service
Trade Finance
Salary services
Safety deposits
Value adds

Business is predominantly corporate, with the bank

targeting companies with turnover in excess of
Kshs100m per year. Retail business is primarily
linked to employees of large clients, as well as high
net worth individuals (HNWI). Corporate banking
services include: loan & overdraft facilities, invoice
and bill discounting, insurance premium financing,
asset financing as well as non-borrowing facilities
such as performance guarantees and bid bonds.
The bank has a network of ten branches (staffed by
222 employees as at end-March 2008), with eight
located in Nairobi and one each in Mombassa and
Kisumu. The bank has also implemented extended
banking hours and an aggressive marketing campaign
in order to boost growth and ultimately market share.
No ATMs are planned, with Primes strategy being to
piggy-back off the domestic markets existing
network.
Ownership
The Kantaria family controls the bank with a majority
53% stake. Shareholder support is evidenced by a
history of capital injections when required.
Table 1 provides a brief summary of the top three
ultimate beneficiaries (post-merger), as at January
2008, with the respective shareholdings held through
a combination of investment holding companies.
Table 1: Shareholding Structure (%)
Kantaria Family
R.L. Raja
N.V. Amlani
Other
Source: Prime.

Post-merger
2008
53.4
14.6
10.7
21.3

Global Credit Rating Co. Kenya Bank Credit Rating Report

Industry overview
Kenyas banking industry is highly fragmented and,
as at December 2007, was populated by forty three
institutions, including: forty one commercial banks
(including two development banks); one mortgage
finance company; and one building society. Total
commercial banking sector assets increased by 16.7%
to Kshs795bn over the 12-months to December 2007,
largely supported by positive economic conditions
and the availability of affordable credit facilities. The
quality of the banking sectors assets continued to
improve, with non-performing loans (NPLs)
representing a reduced 9% of total loans in December
2007, compared to 16% in the previous year. Revised
Prudential Guidelines that were issued in November
2005 became effective on 1 January 2006. Other
regulatory changes include the In Duplum rule,
which limits the amount of interest that an institution
can recover on NPLs, enacted into law during May
2007. The minimum capitalisation level, has also
been adjusted upwards from Kshs250m to Kshs1bn.
However, whilst set out in the recent budget, this has
not been ratified by Parliament. If agreed, all banks
must be compliant by 1 January 2010.
Competitive position
The following table above provides an analysis of the
bank (pre-merger) relative to its peers, focusing on
the key operational indicators for the period ending
31 December 2007. Although both CFC Bank and
Diamond Trust Bank are considerably larger then

Prime, in assets and capital, management regards

these institutions as significant competitors, and as
such, has been included in the comparative below.
Table 2: Peer analysis
(Kshs'm)

Prime

Capital and reserves

Net profit after tax
Total assets
Market share (%)
Net loans
Market share (%)
Deposits
Market share (%)

1,925.8
238.9
15,855.7
1.6
6,298.2
1.3
11,090.5
1.5

1,580.1
376.0
14,653.9
1.5
7,000.8
1.4
9,749.9
1.3

6,013.0
924.7
47,079.4
4.9
16,702.5
3.4
22,070.9
3.0

5,478.7
740.0
40,239.4
4.2
23,181.9
4.7
29,347.3
3.9

12.1
50.3
1.7
14.7

10.8
61.0
3.6
25.6

12.8
80.6
2.2
15.9

13.6
54.3
2.6
17.7

Imperial

CFC

Diamond

Ratios (%)
Capital/Assets
Cost ratio
ROaA
ROaE
Source: Metropol.

Risk management
Following the implementation of the Basel II accord
in 2007, the central banks of Kenya, Uganda and
Tanzania have indicated that they will only
implement the new risk based principles upon
implementation of certain key prerequisites. These
include:

The full implementation of the Basel I Accord;

Adoption of Risk Based Supervision; and
Adherence to the Basel Core Principles for
Effective Banking Supervision.

The CBK is currently undertaking various initiatives

within its current 2006-9 strategic plan to ensure full
compliance with the aforementioned prerequisites. Of
critical importance, however, has been the shift to
Risk Based Supervision (RBS), which began in
2004. RBS focuses on assessing the adequacy of
banks risk management frameworks in identifying,
measuring and mitigating inherent business risks.
Management and corporate governance
The Chief Executive (CEO) of Prime, Mr. Vasant
K. Chetty, continues to lead the management team
post-merger. Mr. Amar Kantaria and Mr. Baharat
Jani, serving as the current Deputy Chief Executive
and General Manager (GM), assist the CEO in the
day-to-day running of the bank. The majority of
Primes
management team holds multiple
qualifications with an average of 24 years experience
across all layers. Table 2 below provides a
breakdown of the banks main Board and
Management Committees, their composition,
membership, and the frequency of meetings.
The current Board of Directors consists of seven
members, including the Chairman, Mr. Rasiklal C.
Kantaria. It was noted, however, that the entire Board
of Directors were classified as Non-Executive
Global Credit Rating Co. Kenya Bank Credit Rating Report

Directors (NEDs). This implies that any executive

decision needs the approval of the CEO, Mr. V.K.
Chetty, who is the ex-officio present in the Board of
Directors. GCR note that Primes disclosure of vital
information, as outlined by the Principals of Good
Corporate Governance (and developed by the Private
Sector Corporate Governance Trust), is considered
lacking when compared to its peers in general.
Monthly Board meetings are held to review the
banks performance, collections and recoveries. The
Board has also appointed committees for audit, assetliability management (ALM) and credit. Internal
audits are carried out in-house, whilst Ernst & Young
(Kenya) is responsible for the yearly audit of the
banks financial statements.
Table 3: Board and Management committees
Committee

Composition

Frequency

Executive
Audit
Credit
Debt Management
ALCO
Operations
Source: Prime.

Senior Management ("SM")

Two NED's & SM
Two NEDs & SM
One NED & SM
SM
SM

Bi-monthly
Quarterly
Quarterly
Quarterly
Quarterly
Bi-monthly

Credit risk
As at 31 March 2008, 71% of the consolidated
entitys balance sheet is considered exposed to the
underlying credit quality, and ultimate performance,
of third party obligors. Post-merger net advances,
primarily local currency loans, continued to account
for the majority of risk assets at 41%. This is in-line
with the banks strategy to increase its lending base.
Contingent liabilities remained significant at 12% of
total assets. Investment securities accounted for 16%
of total risk exposures, however, of this total 55% is
considered to be risk free, relating to the Kenyan
government.
Table 4: Credit risk exposure
Interbank placements
Local banks
Foreign banks
Advances*
Local currency
Foreign currency
Investment securities held
Local Treasury bills/bonds
Investment securities
Contingencies
Letters of credit & guarantees
Other contingencies
Total assets
* Net advances.

1Q F08
Kshs'm
541.6
312.2
229.4
7,629.7
6,670.4
959.3
2,992.3
1,657.4
1,334.9
2,190.8
1,613.3
577.5
18,826.4

%
2.9
1.7
1.2
40.5
35.4
5.1
15.9
8.8
7.1
11.6
8.6
3.1
70.9
Source: Prime

Liquidity risk
Although slightly lower than in previous years, key
liquidity indicators remained strong with cash and

liquid assets at end-March 2008 covering 58% and

41% of deposits and assets respectively. As
illustrated in the liquidity gap analysis in table 5
below, the consolidated entity displayed cumulative
liquidity buffers across all maturity buckets, largely
due to the sizeable liquid asset component.
Furthermore, 65% of loans mature within three
months compared to a higher 89% of deposits. The
short dated nature of Primes deposits is a general
feature of banks in Kenya, and throughout Africa,
where volatile operating environments generally
preclude longer dated deposit funding. This liquidity
concern, however, is ameliorated by the diverse
nature of the banks deposit book and the fact that
92% of fixed deposits are generally rolled over..
Table 5: Liquidity gap
analysis (Kshs'm)
Cash & liquid assets
Advances
Fixed assets
Other assets
Total

<1

1-3

3-12

>12

Month
Months Months Months
7,682.5
1,662.7 3,302.9 1,229.3 1,434.8
342.2
491.1
412.7
9.7
67.8
9,836.3 3,715.6 1,239.0 1,844.8

Deposits
Other
Shareholders equity
Total equity and liabilities

6,383.9
119.9
6,503.8

5,454.4
837.2
6,291.6

Liquidity buffer / (gap)

Cumulative liquidity buffer
As at 31 March 2008.

3,332.6 (2,576.0)
3,332.6
756.6

1,371.4
95.9
1,467.3

42.2
2,330.8
2,373.0

(228.3) (528.2)
528.3
Source: Prime

Currency risk
As depicted in table 6 below, negative currency
mismatches are displayed across most major trading
currencies as at end-March 2008. However, given
that the majority of assets and liabilities are
denominated in local currency, the accumulated net
deficit across all foreign currency obligations
accounted for less than 2% of capital.
Table 6: Currency risk
analysis (Kshs'm)

GBP

US$

Other

LCY

Cash & liquid assets

Advances
Other assets
Total

31.3
10.9
62.5
104.7

186.8
850.6
0.6
1,038.0

30.7 7,432.9
97.1 6,670.4
39.7 1,220.8
167.5 15,324.1

Deposits
Long-term borrowings
Other
Shareholders equity
Total equity and liabilities

124.2
3.6
127.8

1,033.2
12.3
1,045.5

172.6 11,920.6
4.1 1,036.9
- 2,330.8
176.6 15,288.3

Net position
As at 31 March 2008.

(23.1)

(7.5)

(9.1)
35.8
Source: Prime

Lending operations
Gross loans and advances totalled Kshs8bn as at endMarch 2008, translating into a 21% increase over
Primes pre-consolidation position. However, when
compared to the combined loan books as at year-end
2007, the loan portfolio actually declined by 9%.
Global Credit Rating Co. Kenya Bank Credit Rating Report

Moreover, insider loans (comprising loans to

directors, shareholders and employees) accounted for
9% and a significant 32% of gross loans and capital
respectively as at end March 2008.
Table 7: Gross loan and advances book characteristics
By sector: *
Mining and quarry
Manufacturing
Building and construct.
Wholesale and retail
Transport and comm.

By type:
Term loans
Overdrafts
Other loans
Contingencies
As at 31 March 2008.
* Excluding contingencies.

%
32.6
42.0
4.0
21.4

0.2
20.3
4.4
40.2
4.5

Finance and insurance

Real estate
Business services
Other

Largest exposures:
Single largest
Five largest
Ten largest
Twenty largest

0.3
2.9
12.9
14.3

%
2.7
11.7
20.5
32.5
Source: Prime

In terms of economic sector, the advances book is

reasonably well diversified, with major exposures in
manufacturing and commerce (primarily short-term
trade and import finance), and other sectors that have
robust growth prospects. The book is relatively well
spread in terms of loan size, with the twenty largest
exposures accounting for 33% of the total book.
Overdrafts and commercial loans continued to
account for the bulk of the advances portfolio,
constituting a combined 75% of the gross book.
Asset quality
When compared to Primes pre-consolidation
position, asset quality indicators have remained
relatively unchanged over the first three months of
operation. Supported by the augmented loan
portfolio, the banks capital value in arrears
accounted for a marginally lower 7% of gross loans
(Prime F07: 8.8%).
Table 8: Asset quality
(Kshsm)
Gross advances*
Performing
Non-performing
Non-performing loans
Less: Interest in suspense
Capital value in arrears
Less: Provisions
Net NPLs
Gross NPL ratio (%)
Net NPL ratio (%)
Net NPLs/Total Capital (%)
* Excluding interest in suspense.

31 December 2007

1Q F08

Prime

Consol

Prime Cap

6,646.1
6,107.8
538.3

2,192.9
2,121.0
71.9

8,020.4
7,440.7
579.7

561.5
(23.2)
538.3

87.3
(15.4)
71.9

621.6
(41.9)
579.7

(347.0)

(56.2)

(331.6)

191.3

15.7

248.1

8.1
3.0
9.9

3.3
0.7
0.9

7.2
3.2
10.6
Source: Prime

Considering the contraction in provisions held,

arrears coverage declined to 57% (Prime F07: 64%).
Accordingly, the consolidated entitys net NPL ratios
increased slightly in comparison with Primes year-

end position. It was noted, however, that although

net NPLs are fully covered by the value of pledged
securities, timeous realisation is difficult given a
cumbersome judicial system.
Funding
The bank is primarily funded via a combination of
customer deposits and retained earnings. Following
the merger, the bank settled all outstanding balances
on its trade finance facilities (totalling US$10.9m),
while also reducing interbank borrowings to
negligible levels.
1Q F08

Table 9: Funding mix

Corporate deposits
Private banking customer deposits
Interbank borrowings
Long term funding
Total
Source: Prime.

Kshs'm
3,401.6
9,846.7
3.6
13,251.9

%
25.7
74.3
0.0
100.0

As at 31 March 2008, the banks consolidated

funding base totalled Kshs13.3bn, while total capital
and
reserves
increased
to
Kshs2.3bn.
Notwithstanding a 17% rise in risk-weighted assets
over the first quarter, capitalisation ratios remained
well above statutory requirements. In this regard, the
banks core capital to risk weighted assets, and total
deposits, increased to 17% and 11% respectively
(Prime F07: 15% and 10% respectively).
Financial performance
Given Primes dominant position pre-merger, this
section will focus solely on that entitys year-end
performance relative to budget.
Table 10: Budget vs. actual
results (Kshs'm)

Actual

Budget

F07
Interest income
1,020.1
Interest expenditure
(464.8)
Net interest income
555.4
Other income
265.3
Total operating income
820.7
Operating expenditure*
(504.0)
NPBT
316.7
Tax
(77.9)
NPAT
238.9
* Includes the loan loss provision of Kshs92m
(Budget).
Source: Prime.

Budget

F07
(%)
933.4
109.3
(416.8)
111.5
516.6
107.5
279.0
95.1
795.6
103.2
(508.0)
99.2
287.6
110.1
(87.6)
88.9
200.0
119.4
(Actual) and Kshs78m

As depicted above, net after tax earnings (NPAT)

increased by a robust 73% year-on-year, thereby
exceeding budget by just under 20%. This can largely
be ascribed to higher than expected interest earnings
and the containment of costs to budgeted levels. Noninterest income was slightly behind budget, and as
such, accounted for a lower 32% of total operating
income (F06: 35%). Effective costs controls across
all business units saw Primes cost ratio decline for a
third consecutive year to 50% (F05: 61%; F06: 56%).
Global Credit Rating Co. Kenya Bank Credit Rating Report

The improvement in efficiency was further supported

by a drop in the operating expenses to average assets
ratio from 3.9% in 2006 to 3.5%. Key profitability
indicators strengthened in view of the banks strong
performance with the ROaA and ROaE increasing to
1.7% and 14.7% respectively (F06: 1.3% and 13.4%
respectively).
Future prospects
Given the emergence of a somewhat different entity,
prior comparatives are distorted. As such, the
following section will focus on the combined entitys
performance over the first six months of 2008 relative
to the full year budget.
Table 11: Budget vs. actual
results (Kshs'm)
Interest income
Interest expense
Net interest income
Other income
Total operating income
Bad debt charge
Operating expenditure
NPBT
Balance sheet
Advances
Deposits
Total capital
Total assets excl. contingencies
Source: Prime.

Actual
June F08
795.8
(501.7)
294.1
315.1
609.2
(33.6)
(292.8)
282.8

Budget
F08
1,542.8
(871.2)
671.6
653.2
1,324.8
(60.0)
(690.1)
574.7

Budget
(%)
103.2
115.2
87.6
96.5
92.0
112.0
84.9
98.4

Actual

Actual

Growth

June F08
7,629.7
13,251.9
2,330.8
16,635.7

F07
6,298.2
11,090.5
1,925.8
13,861.8

(%)
21.1
19.5
21.0
20.0

On an annualised basis, net profit before tax

(NPBT) for the first half of 2008 was marginally
below full year expectations. This was due to a
shortfall in non-interest income coupled with a larger
than anticipated bad debt charge. Notwithstanding the
aforementioned, operating expenditure was well
curtailed, thus enabling the near attainment of the full
year budget on an annualised basis.
In accordance with the banks recently introduced
strategy guidelines (spanning the period 2008
2010), loans and deposits are both expected to grow
at a rate of around 20-25% per annum. This will be
achieved by broadening its existing branch network,
widening available delivery channels, and by
aggressively marketing its brand. NPAT is expected
to increase by 26% during 2008 and a further 19%
and 10% during the following two years respectively.
With regards to NPLs, Prime has been selective in
taking up new advances, thereby ensuring that net
NPLs do not exceed 3% of net advances on a year-toyear basis.

Prime Bank Ltd

(KShs in Millions except as noted)
For the year ended 31 December
Income Statement
Interest income
Interest expense
Net interest income
Other income
Total operating income
Loan loss provision
Operating expenditure
Exceptional items
NPBT
Tax
NPAT
Other after-tax income / (expenses)
Net income

Prime Cap
2006
333.4
(165.0)
168.4
62.2
230.6
(13.5)
(58.3)
14.6
173.4
(38.2)
135.2
0.0
135.2

Prime
2006
760.8
(366.4)
394.4
207.9
602.3
(71.5)
(339.5)
0.0
191.3
(53.1)
138.1
0.0
138.1

Prime Cap
2007
357.7
(156.2)
201.5
8.4
209.9
(8.3)
(95.9)
(4.5)
101.2
(25.7)
75.5
0.0
75.5

Prime
Consolidated*
2007
1Q 2008
1,020.1
385.8
(464.8)
(175.5)
555.4
210.3
265.3
58.8
820.7
269.1
(91.5)
(18.1)
(412.4)
(121.2)
0.0
0.0
316.7
129.8
(77.9)
(40.0)
238.9
89.8
0.0
0.0
238.9
89.8

Balance Sheet
Tier I capital
Tier II capita
Total capital and reserves
Deposits, current and other accounts
Acceptances and other liabilities
Total capital and liabilities

1,462.1
0.0
1,462.1
2,309.2
206.1
3,977.4

860.7
457.1
1,317.8
8,363.7
2,876.3
12,557.9

1,807.1
0.0
1,807.1
2,123.9
134.4
4,065.4

1,099.6
826.2
1,925.8
11,090.5
2,839.3
15,855.7

1,517.1
813.7
2,330.8
13,251.9
3,243.7
18,826.4

Cash and liquid assets

Advances
Investments
Other assets
Total assets

1,716.8
2,028.2
57.3
175.1
3,977.4

4,877.8
4,880.3
0.0
2,799.8
12,557.9

1,809.6
2,136.7
51.7
67.4
4,065.4

6,731.5
6,298.2
0.0
2,826.0
15,855.7

7,682.5
7,629.7
0.0
3,514.2
18,826.4

Key ratios (%)**

Capitalisation
Total capital / Deposits
Total capital / Assets
Total capital / Advances

63.3
36.8
72.1

15.8
10.5
27.0

85.1
44.5
84.6

17.4
12.1
30.6

17.6
12.4
30.5

Liquidity
Advances / Total deposits
Cash and liquid assets / Total assets
Cash and liquid assets / Total deposits

87.8
43.2
74.3

58.4
38.8
58.3

100.6
44.5
85.2

56.8
42.5
60.7

57.6
40.8
58.0

Asset quality
Loan loss provision / Average advances
Loan loss provision / Total operating income

n.a
5.9

1.7
11.9

0.4
4.0

1.6
11.2

0.3
6.7

Profitability
Net interest margin
Non interest income / Total operating income
Cost ratio
Net profit margin
Effective tax rate
ROaE
ROaA

n.a
27.0
25.3
68.9
22.0
n.a
n.a

4.8
34.5
56.4
31.8
27.8
13.4
1.3

5.2
4.0
45.7
50.4
25.4
4.9
2.0

4.9
32.3
50.3
38.6
24.6
14.7
1.7

5.9
21.9
45.0
48.2
30.8
27.5
2.1

n.a
n.a
n.a
n.a
n.a

46.3
43.6
78.8
37.6
57.7

2.2
5.3
23.6
(8.0)
(44.2)

26.3
29.1
46.1
32.6
72.9

18.7
21.1
38.0
19.5
(62.4)

Nominal growth indicators

Assets
Advances
Shareholders equity
Deposits
Net income
* Unaudited
** Ratios have been annualised where deemed necessary