Bloomberg News

Kenya Commercial Reaches 7-Month High on Earnings: Nairobi Mover

March 02, 2012

Kenya Commercial Bank Ltd. (KNCB), the East African nation’s third-biggest lender by market value, rose to a seven-month high after full-year earnings surged, beating analyst estimates.

The stock jumped as much as 6.1 percent and closed 3.7 percent higher at 21.25 shillings in Nairobi, the capital, the most since Aug. 8. The volume was more than five times the stock’s three-month trading average, according to data compiled by Bloomberg.

Net income increased to 11 billion shillings ($132 million) in the 12 months through December from 7.18 billion shillings a year earlier, the Nairobi-based lender said in a statement e- mailed by the city’s stock exchange yesterday. Net interest income climbed 19 percent to 23.3 billion shillings.

“The bank showed an improvement in asset quality, good growth in fees and commissions as transaction volumes came through, reasonably contained costs and improved returns,” Renaissance Capital, a group whose interests include asset management and investment banking, said in an e-mailed note to clients today.

KCB, as the lender is known, beat Renaissance’s earnings estimate by 18 percent on reduced provisions for bad debt and a lower-than-forecast tax rate, according to the note. The target price for the stock is 24.6 shillings, Renaissance said.

To contact the reporter on this story: Eric Ombok in Nairobi at

To contact the editor responsible for this story: Shaji Mathew at

The Aging of Abercrombie & Fitch
blog comments powered by Disqus