Bloomberg News

Standard Chartered of Kenya Drops on Profit Bets: Nairobi Mover

March 12, 2012

Standard Chartered Bank Kenya Ltd. (SCBL), the local unit of Standard Chartered Plc, (STAN) retreated to its lowest level in almost a week, slipping for a second day, on bets it will announce full-year profit dropped in 2011.

The shares fell as much as 3.4 percent to 170 shillings before closing trading down 0.6 percent at 175 shillings by 3 p.m. in Nairobi, the lowest since March 6, according to data compiled by Bloomberg.

Both earnings per share and profit after tax could retreat 3.4 percent, Francis Mwangi, head of research at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today. StanChart, as the lender is known, could have a made a loss of 400 million shillings ($4.86 million) from sales of its holdings in fixed-income securities, he said

“By the third quarter, earnings per share had declined 15 percent,” Mwangi said. “They were a bit quiet on lending for the first half of 2011 then there was a substantial amount of lending in quarter three.”

In the nine months through September, StanChart’s net income declined to 3.86 billion shillings from 4.3 billion shillings a year earlier, it said Nov. 23. The lender is scheduled to report full-year earnings tomorrow.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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