K-Rep Bank Records 15 Percent Drop in Net Income

NIC Records 9% Growth in PAT

At the close of trading on Wednesday, the market recorded varied movements as indicated by the market indicators. The NSE 20 share index edged up by 0.60% to close at 4044.72 points while the NSE 25 Share Index advanced marginally by 0.14% to close at 4215.71 points. The NSE All Share Index closed on the red, losing ground by 0.21% to perch at 145.65 points.

Market capitalization contracted by 0.21% to KES 2,048.83 Billion while the equity turnover followed suit, shedding 62.64% to clinch at KES 0.348 Billion. The decliners outweighed the advancers resulting in an A/D ratio of 0.89x. NIC Bank Ltd (NSE: NIC) announced their Q3 2015 results, recording a 9% growth in profit after tax to KES 3.6Bn. This was attributed to an increase in lending to the retail, SME segment and Corporates. Customer’s deposits was also on the rise, as a result of increased branch networks and roll out of new banking products. In addition, the non-funded income was bolstered as the Bank sought to grow its fees income through cross selling to the increasing customer base as well as improved digital channels.

On the other hand, K-Rep Bank recorded a 15% drop in net income for the Q3 2015 to KES 281 Million as a result of tight liquidity prevalent in the market during that period. We are positive that Krep Bank, a subsidiary of Centum Investment Ltd, will bolster its topline performance as plans are underway to diversify its products as well as expanding its network from the recent KES 1.2 Bn pumped in.

Equity Market Highlights

Kenya Commercial Bank Ltd (NSE: KCB) was the most actively traded stock today accounting for 59.46% of the total market value traded activity. This was mostly driven by increased net outflows. Safaricom Ltd (NSE:SCOM) was the second most active stock, accounting for 13.74% of the days traded value.

Total Kenya Ltd (NSE: TOTL) topped the gainers chart, posting the highest gain of 5.76% to close the day at KES 18.35. Nation Media Group Ltd (NSE: NMG) soared by 5.59%, to close at KES 151.00.

Atlas Development & Support Services Ltd (NSE: ADSS) was the top loser of the day, declining by 9.09% to close at KES 2.50. TPS Serena E.A Ltd (NSE: TPS) was second, losing 6.14% to close at KES 26.75.