Turnover at the Bourse Hits 1.8 Billion Shillings

Turnover continued to rise to close the day at 1.8 billion shillings on Thursday driven by short and medium-tenor trades.

The CBK injected liquidity yesterday on account of a skewed market with 1.3B billion shillings being taken up at 9.7 percent.

The shilling overnight rate continued to ease marginally holding at 4.905 percent. The shilling continued to power on closing at an average of 100.1 as inflows continued to support it.

In the corporate world, Stanbic Bank Kenya Limited announced its 1Q18 financial performance reporting a stellar 78.9 percent y/y growth in EPS to 11.29 shillings.

This was driven by 17.9 percent y/y and 55.4 percent y/y growth in both net interest income (NII) and non-interest revenue (NIR) respectively. NII growth was supported by a 30bps y/y increase in yield on the loan book (10.4 percent).

Delightedly, NIR contribution outpaced our FY18 expected 45.0% to record high level of 49.2 percent from an average of 42.8 percent in FY17. This is the highest observed in the sector in the past 5 years.

1Q18 financials comply with IFRS 9 reporting requirements and we have observed minimal capital impact though we see cautious lending due to the 1.6 percent q/q decline in loan book.