Why this is the right time to buy bank stocks
We maintain that bank stocks are undervalued, a chance that presents a good opportunity to buy. Banks have a lower stock price-to-book ratio. According to EFG Hermes, despite the strong earnings outlook, Kenya banks’ average 2023 price-to-book ratio of 0.7x and price-to-equity of 3.4x, are significantly below its 2008-21 average of 1.6x and 14.2x, respectively. The banking sector has maintained strong performance and we project earnings growth in FY 2022 for the upcoming financial results. The net profits of the banking sector reported in third quarter (Q3) 2022 grew compared to Q3 2021. Profits for FY 2022 are expected to grow further after banks reported…
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