Standard Chartered Bank Kenya has been surpassed by NCBA Group and Absa Bank
Kenya in the market capitalization ranking among Kenya’s listed lenders.
On Tuesday, NCBA’s market value reached Sh64.5 billion, making it the fifth-largest
bank.
The institution was rated sixth on September 30, 2019, and had an inferred worth of
Sh44.8 billion.
Following the merger of the former CBA Group and NIC Group, which was listed on the
stock exchange and adopted the new name after the business combination, NCBA was
established on that day.
Following the merger, NCBA issued an extra 793.8 million shares to the former CBA
Group shareholders, who collectively acquired a 53 percent ownership in the bank listed
on the Nairobi Securities Exchange.
As of Tuesday, Absa Bank has a market capitalization of Sh66.5 billion, making it the
fourth-largest bank.
On September 30, 2019, the lender had a market value of Sh59.7 billion, placing it sixth
behind Stanchart, whose value was Sh68.6 billion.
Since then, Stanchart’s market capitalization has dropped to Sh58.6 billion, placing it
sixth as of Tuesday.
The other listed banks kept their positions despite reporting a mixed trend in
shareholder wealth growth and depreciation.
With a market capitalization of Sh174.3 billion, Equity Group, which has historically
traded at the largest premium, continues to be the most valuable bank.
The bank’s market value increased by the most money, from Sh141.3 billion on
September 30, 2019, to Sh33 billion.
In the year that concluded in December 2020, Equity surpassed KCB in absolute
earnings, increasing its dominance across a number of metrics, including assets.
At Sh19.7 billion, NCBA recorded the second-largest increase in shareholder wealth.
This takes into account the effects of the extra shares issued as a result of the merger,
the bank’s increased profitability, and the larger dividend payout that has caused its
share price to rise the most recently among all listed lenders.
On Tuesday of last week, the stock soared to a 52-week high of Sh40.2 before falling to
end at Sh39.2 this Tuesday.
In the nine months that ended in September, NCBA almost doubled its net income to
Sh12.8 billion.
Additionally, the bank stated that coming future, it will distribute up to half of its
profits, indicating more generous payouts than before.
Third place goes to Absa, which increased shareholder wealth by Sh6.7 billion during
the review period.
On the strength of increasing income from lending, the bank reported a 30% increase in
net profit to Sh10.7 billion in the nine months that ended in September.
Absa, which finished the costly process of severing ties with its former parent company
Barclays Plc, has joined other publicly traded banks in restoring dividend payments that
had become inconsistent following the Covid-19 crisis.
The market capitalization of Stanbic Holdings increased by Sh6.3 billion to Sh44.2
billion, although it maintained its ranking as the seventh most valuable bank.
Co-op Bank increased shareholder wealth by Sh2.3 billion to reach Sh72.1 billion,
maintaining third place.
