Bloomberg News

Equity Bank Jumps Most in a Month on Profit Bets: Nairobi Mover

July 19, 2012

July 19 (Bloomberg) --Equity Bank Ltd. (EQBNK), Kenya’s largest lender by customers, rose for a second day, headed for the highest in almost a month on speculation of increased first-half earnings.

The stock climbed as much as 2.3 percent to 22.25 shillings and traded at 22 shillings as of 1:21 p.m. in Nairobi. A close at that level would be the highest since June 22.

First-quarter profit climbed 13 percent to 2.64 billion shillings ($31.4 million) as loans surged, Managing Director James Mwangi said April 26. The lender’s price estimate was increased to 27.9 shillings from 25.5 shillings, Renaissance Capital said in an e-mailed report on July 16.

“Based on what they did for first quarter, the bottom line is likely to increase by 15 percent to 20 percent generally because the interest expenses came down in the second quarter,” Faith Atiti, an analyst at Nairobi-based Sterling Investment Bank said in a phone interview today.

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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