Bank shares were on the list of counters that recorded a dip in price when trading at the Nairobi Securities Exchange (NSE) ended this Friday, 20th November 2020.
Absa Bank and Equity Group were on the list of top 5 worst performers as foreigners turned into net sellers, reacting to drop in earnings by these lenders.
This Friday, Absa Bank’s share price was down 1.84% to close at KSh 9.58 from the previous KSh 9.76 while Equity Group lost 1.67% to trade at KSh 35.35.
Foreign investors, who dominate activity at the bourse, were also net sellers on the Equity Group counter, resulting in a considerable turnover of KSh 3.4 Million.
Absa Bank is one of the counters that has seen foreigners become net seller, offloading a volume of 398,200 shares Absa Bank shares in 53 deals which resulted in a turnover of KSh 3.82 Million. Bank Shares have been alternating with Telco Safaricom, the most dominant mover at the Nairobi bourse.
Bank Shares Q3 Earnings
By the close of trading on Friday this week, the list of lenders that had released their Q3 financials included Equity, KCB, Co-operative Group, and ABSA Bank. Considered leading players in Kenya’s banking business, all these 4 banks have reported a fall in Q3 earnings.
Q3 Net earnings for Stanchart declined 30.6% to KSh 4 Billion similar earnings for Co-operative Bank fell 10% to KSh 9.8 Billion. KCB Group considered the largest lender by assets, reported a 43.2% decline in net earnings to KSh10.9Billion in Q3 2020; the performance weighed down by colossal loan loss provisions.
All attention remains on bank shares as more lenders release their Q3, 2020 results. Initial signs indicate a tough time for the banking industry that has seen mergers layoffs and loan restructuring regime, all hitting on the bottom-line of each lender.
READ;
Absa’s Q3 Net Profit Down by 65%
