NSE investors smile all the way to bank

Nairobi Securities Exchange investor Baloobhai Patel last month bought an additional 8.8 million shares worth Sh145.2 million at Kenya’s third largest bank by asset size, Co-operative Bank, pushing his stake to close to two per cent.

This week, bank counters at the Nairobi bourse will blink green as lenders announce billions in net profits for the financial year ended December 31, 2024.

It will be harvest season for investors like Baloobhai, who bought more shares just weeks before the release of the year’s financial results and are likely to earn an extra shilling per share if the market maintains trend witnessed last week.

Stanbic Bank was the top gainer on Tuesday last week after the lender made a 13 per cent increase in net earnings for the year ended December 31, 2024, despite a drop in revenue.

The listed lender’s profits for the year surged to Sh13.7 billion net, pushing its share price by seven per cent to Sh168.50. Pundits expect bank counters to gain between Sh0.50 to Sh2.50 or an average of Sh1.50, a move that is likely to see investors like Baloobhai earn at least Sh13.2 million in just two weeks.

Last week, Co-operative Bank’s share price closed the week at Sh16.90, having gained 50 basis points. Equity Bank gained 0.21 per cent to close the week at Sh48.50 while KCB gained 0.25 per cent to hit Sh44.70 on Friday.

The Bank of Kigali was the biggest gainer on Friday at 7.99 per cent, pushing its share price to Sh37.15. In a bizarre incident that defied market trends, NCBA was the biggest loser at the bourse on Friday, recording a 4.2 per cent drop from its previous closing price of Sh54.

It began the year with a share price of Sh48.20 and has since gained 7.37 per cent on that price.