Kenya Commercial Bank Climbs to Record High: Nairobi Mover
Kenya Commercial Bank Ltd., the country’s biggest lender by assets, rose to a record high on speculation profit increased last year.
KCB, as the lender is known, climbed 3.5 percent to close at 36.75 shillings a share in Nairobi, the highest since at least May 1997. More than 2 million securities changed hands, 123 percent of the three-month daily average. The stock has risen for six straight days, the longest streak in almost a month.
The company will announce full-year earnings later this month. Profit in the nine months through September surged 35 percent to 8.69 billion shillings ($99.3 million) as income from loans grew, it said Oct. 25.
“We expect strong earnings based on what they had done by the end of the third quarter,” Ted Macharia, a research analyst at Nairobi-based AIB Capital, said by phone. Profit after tax will be about 13 billion shillings, he said.
KCB’s earnings per share in the fourth quarter are estimated to climb to 1.3 shillings from 1.11 shillings the previous quarter, George Bodo, head of Africa banking research at Ecobank Capital Ltd., said in a phone interview.
The stock has climbed 25 percent this year, compared with a gain of 19 percent for the Nairobi Securities Exchange All Share Index, according to data compiled by Bloomberg.
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