StanChart rises to fifth in NSE market valuation

Standard Chartered Bank of Kenya last year spent Sh205.63 million on redundancies.

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Standard Chartered Bank Kenya has risen to become the fifth most valuable bank amid rapid changes in the ranking of the country’s listed lenders.

Its share price gained 1.1 percent to close at Sh152.75 on Friday, giving it a market value of Sh57.7 billion and lifting it close to Absa Bank Kenya which is ranked fourth with a market capitalisation of Sh58.3 billion. StanChart was previously sixth among the Nairobi Securities Exchange-listed banks.

Equity Group remains the most valuable bank at Sh140.7 billion, followed by Co-operative Bank of Kenya (Sh62.4 billion) and NCBA Group (Sh57.6 billion).

StanChart has recorded share price gains, rising from the 52-week low of Sh134 set on May 12, 2023. The bank has the highest valuation in relation to its net assets and earnings, with the institution also having the highest dividend yield of 14.4 percent.

StanChart paid a total dividend of Sh22 per share in the year ended December 2022 when most other lenders also increased their cash distributions to shareholders. It is followed by Co-op Bank (14 percent) and I&M Group (12.8 percent).

These are the highest yields seen among listed banks in recent decades, coming amid investor flight to developed economies.

Some investors have also cut their holdings of listed equities in favour of Treasury bills and bonds that are offering even higher cash returns approaching 18 percent. The listed banks will in the next few weeks announce their performance for the nine months ended September, a period characterised by rising interest rates.

StanChart had reported a 27.7 percent growth in net income to Sh6.91 billion in the half year ended June, aided by higher interest income from customer loans and foreign exchange commissions.

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