mwanahisa wrote:wangugi wrote:@vituvingi, I agree with you but guys should not over celebrate the 100% + growth, DTB is not very aggressive in their core business, interest income grew by only 13.5% actually if you remove the 1 b they made from bonds profits will remain flat if not decline
And even on this point, the facts do not bear you out.
PBT Minus Other Income (assuming it's all bond trading profits) grew by 27%. We can hardly call that flat. After all, SCBK grew their PAT by 17% vis-a-vis Q3 2009. It's still trading on a forward PE of 12.75.
@ Mwanahisa: Good point.
It is not only DTB that was trading in bonds within the Banking Sector. All banks owe part of their good performances this year also to the same activity (bond trading). Its only that DTB seems to be better than most at this activity.
For sustainability of growth , the loan book seems to be growing well and the Ksh 2B they got recently will further enhance growth in the loan book.
If you use the Wazua performance calculator and go back six to seven years, you will realise that DTB is one of the companies that has delivered the highest capital gains over time. Its ability to sustain a growth momentum should not be in question especially if the economic upturn continues next year.
The fact of the matter is that at current prices, this share is a definite buy in comparison with other banking stocks. I will be surprised if the share does not trade in the 150-160 levels in the coming few weeks of November.
Happy hunting.
x handle: @stocksmaster79