Barclays Bank Kenya Ltd. (BCBL), the country’s second-biggest lender by market value, closed at its highest level in more than 14 months on bets profit in the nine months through September will grow as much as 30 percent.
The shares advanced 4.4 percent to 15.50 shillings by the 3:00 p.m. close in Nairobi, the capital.
The stock has risen for seven straight sessions, the longest streak in a year, and closed at the highest level since July 25, 2011, according to data compiled by Bloomberg. About 720,000 shares traded, more than double the three-month moving average volume.
“They have been looking to grow their loan book,” Davis Mika, an analyst at Nairobi-based Contrarian Investing Kenya Ltd., said by phone today. “Investors are taking positions ahead of the announcement of third-quarter earnings that I estimate will grow between 20 and 30 percent.”
Lenders in the east African nation are expected to begin announcing earnings any time starting next week, he said.
In the six months through June, Barclays Kenya’s profit rose 17 percent as it boosted earnings from loans amid record interest rates. Net income increased to 4.27 billion shilling ($50 million) in the six months through June from 3.64 billion shillings a year earlier. Net interest income, the money banks earn from charges on loans, grew 21 percent to 8.97 billion shillings.
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