Tuesday, January 03, 2006

Bank shares in '05

Share prices of financial institutions listed at the Nairobi Stock Exchange in 2005.
Share prices as at: Dec 04 Dec 05 Change
Barclays Bank 203 263 30%
C.F.C Bank 58 75 29%
Diamond Trust Bank 29 32.25 11%
Housing Finance 9.35 13.95 49%
I.C.D.C Investments 60.50 72.50 20%
Jubilee Insurance Co. 59 83 41%
Kenya Commercial Bank 68 113 66%
National Bank of Kenya 17.80 28.75 62%
NIC Bank 50 51 2%
Pan Africa Insurance 21 40 90%
Standard Chartered 128 139 9%

Dividends: Barclays paid 14 shillings per share as total dividends in 2004, followed by StanChart at 6.50 and KCB at 2.50, while other banks paid 2 shillings or less per share.

Other activity: Diamond Trust issued a 1 for 4 bonus share, while CFC had a rights issue in a 1:12 ratio. Jubilee insurance consolidated its African holdings, while a merger at Pan African insurance is pending in South Africa.

Summary: With no capital gains tax in Kenya, shares are still a good way to build savings and earn an excellent return for dedicated investors.

3 comments:

kuoasan said...

Please provide details on the Jubilee consolidation as well as the Pan Africa merger.

bankelele said...

Jubilee: http://www.eastandard.net/archives/cl/mags/fs/news.php?articleid=24964&date=12/7/2005

Pan Africa: http://66.102.9.104/search?q=cache:i0qd-IoHmnQJ:www.sanlam.co.za/NR/rdonlyres/euaqwxduue7qmgetq4e4l53cymm3tlmtexdhvjw5e3r6ods23kmailty5uz5lkwgeipdwmslijnnojlcxpfu6omrk5a/eSanlam_acquire_African_Life_presentation.pdf+sanlam+kenya&hl=en

kuoasan said...

Bankelele:

I have to disagree with your views on JIC & PAI...

Jubilee Insurance Company (JIC)closed the Mauritius operation (75%)but has not consolidated its Africa operations. Since JIC owns >51% of JIC(K), JIC(U) & JIC(T), they do consolidate for accounting/financial purposes BUT not operational - likw TPSEA is doing.

JIC will probably do so in the FUTURE esp with the tax treaties signed with Ug & Tz but not in effect. Since the tax laws in EA are generally vague & subject to multiple interpretations thus it is better to leave these units "operationally unconsolidated" though they share directors, staff & a back office.

Anyway, Jubilee will probably follow the TPS model as will the other Aga Khan firms like Diamond Trust & bring all units under one shareholding structure as well as list on all 3 exchanges.

JIC, TPS & DTK have operations in all 3 EA countries & will probably expand to Rwanda & Sudan with time.

PAI (on NSE) is NOT being merged with Sanlam but African Life (listed on JSE & a large shareholder in PAI)is being "bought out/merged" with Sanlam.

Of course, in the future, Sanlam might offer to buy out the existing Kenyan shareholders OR offer an exchange of shares like TPSEA has done.

Please keep us updated on the happenings in Kenya!

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