Sunday, February 04, 2007

Bank shares in '06

Share performance of financial institutions listed at the Nairobi Stock Exchange in 2006.

Share prices as at: Dec 05 Dec 06 Change
Barclays Bank 263 77 (385) 46%
C.F.C Bank 75 89 19%
Diamond Trust 32.25 72.5 125%
Equity (listed in August '06) 70 139 99%
Housing Finance 13.95 48 244%
I.C.D.C Investments 72.5 325 348%
Jubilee Insurance ]83 323 289%
Kenya Commercial 113 241 113%
National Bank 28.75 58 102%
NIC Bank 51 102 100%
Pan Africa Insurance 40 91.5 129%
Standard Chartered 139 205 47%

Other share activity
- Barclays had a 5-for-1 share split and a bonus issue of 1 for 3 and still paid the highest dividend of about 14 sh. per share in 2006
- Standard Chartered paid a 7.5 sh per share dividend
- Jubilee paid 4.25 sh dividend
- KCB paid a much improved dividend of 4 sh per share
- NIC paid a 2.5 sh dividend
- Equity joined the NSE as the entire shareholding was listed in August 2006 at 70 shillings per share after earlier paying a dividend of 2 sh per share.
- ICDCI shares rocketed up into the stratosphere as the company announced a 10 for 1 share split
- Pan Africa Insurance paid a 1.2 sh dividend
- CFC paid a dividend of 0.84sh per share
- Diamond Trust paid a 0.7sh dividend
- National Bank and Housing Finance had improved earnings but no dividend.


Riba Capital said...

Banks: The listed companies that are in the financial industry made the most head way in capital gains and continue to do so as this service industry continues minting dollars at an unstoppable rate.
Those with a position in these players are in for another good first quarter as the players report their full year(2006) results in the coming days.I must say that some of these shares are heavily overpriced if look at individual counters but as a whole this is one segment that should feature in any serious investors' portfolio.

I think with Barclay's record profits it could hit Kes: 100.00 in near future as the Insurance companies also continue to impress.

Another indicator that Banks are going to dominate financial talk is the merger activity and restructuring that the industry is engaged in.
CFC - Stanbic
Equity - NBK
Stanbic - NBK (Should not be ruled out)
Diamond Trust - Habib

This is an industry driven intiative to consolidate which places Kenya in a better position than the forced consolidation of Nigerian Banks.

Other recent happenings include:
Citibank - ABN Amro
CBA - First American
I&M - Biashara Bank

This is good news for bankers and the industry watchdog the CBK.

pesa tu said...

Now the problem is that NBK/HFCK capital gains only for the medium term.
ShareHolders of these two had better hope that the NSE keeps rising coz thats the only way they will make money.

pesa tu said...

i.e. HFCK/NBK holders wont get dividends for a while

MainaT said...

Pesa-tu, I think you'll see HFCK rise because of several reasons. I think their FY results will be very good especially compared to '05; the rights issue which I think will lead to some CDC divesture and possible new more dynamic principal shareholder. NBK may again rise if market anticipates a takeover

bankelele said...

Riba Capital: They wer all profitable and but with an abundance of cash and that streak should continue as they announce their results for 2006 starting this month - & the merger talk could push up some prices.

pesa tu: speculaton will continue to prop up these prices. NBK's books carry a recapitalization & restructuring pledge each year by the government, but which is yet to happen

pesa tu: hold only for speculation on M&A

MainaT: Performance at HFCK has improved, but not enoguh to justify the current prices and in absence of divdend. Once their shareholding and rights issue are sorted out, it will be easier to price & forecast

MainaT said...

Banks, i believe the premium on the share price includes a couple of things the good numbers they had for first 9 months so expectations of the same for FY; take-over of change of controlling interest and Ireri the new MD.

On a related-matter, do you know where I could source could banking industry data e.g. number of accounts, customers, mortgage holders, branches, atms etc by bank?

Anonymous said...

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