Standard Bank’s Kenya Unit Drops on Profit Bets: Nairobi Mover
CFC Stanbic Holdings Ltd., the Kenyan unit of South Africa’s Standard Bank Group Ltd. (SBK), fell the most in seven weeks on speculation that first-quarter profit retreated from the previous three months in line with other lenders.
The stock declined 4.2 percent to 57 shillings by 2:13 p.m. in the capital, Nairobi, the biggest decrease since March 20, according to data compiled by Bloomberg. Almost 3.9 times the three-month daily-average volume of shares were traded.
“Quarter-on-quarter we are seeing a depressing image across the banking industry because of politics and delayed investment decisions at the beginning of the year,” Ted Macharia, a research analyst at Nairobi-based AIB Capital Ltd., said by phone today.
Profit at Equity Bank Ltd., the second-biggest lender by market value, dropped 15 percent in the first quarter of this year from the last three months of 2012, while earnings at Housing Finance Co. slumped 44 percent on the same basis. Both banks reported gains in profit annually. CFC Stanbic hasn’t given a date for its first-quarter earnings release.
Uhuru Kenyatta won a presidential election on March 4 and was sworn in on April 9, almost half a century after his father, Jomo Kenyatta, became the East African nation’s first post-independence president. In the last vote in 2007, ethnic clashes left at least 1,100 dead.
CFC Stanbic’s shares have gained 36 percent this year, compared with a 30 percent jump on the Nairobi Securities Exchange All-Share Index (NSEASI), according to data compiled by Bloomberg.
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