Turnover slid to USD 8.9m (-22.6%) with activity on large caps: EABL, (21% of turnover), KCB (19%), Safaricom (11%), BBK (11%), Equity (10%). EABL was up 2.8% to KES 181, with the banks also gaining as KCB closed at KES 19.85 (+0.8%) and BBK up 0.8% to KES 13.10. Safaricom and Equity Bank were however down 4.5% (to KES 3.15) and 0.3% (to KES 18.95) respectively. Top gainers included: Pan Africa Insurance (+21.9% to KES 22.25), Express Kenya (+11.1% to KES 4) and NIC Bank (+11% to KES 27.75). Access Kenya (-16.5% to KES 3.55), Standard Group (-15.0% to KES 21.25) CFC Insurance (-7.9% to KES 6.45) were the top decliners of the week.
BAT Kenya published impressive results for its FY11, with turnover up 48.7% to KES 20bn and earnings up 75% (EPS: KES 30.98). This was on the back of cut-rag export revenue of KES 4.8bn as well as the benefit of the weak shilling that uplifted export revenues. Operating margins expanded 144bps to 23.2% showing efforts at cost containment in the high inflationary environment of 2011. BAT declared a DPS of KES 30.50 (98% DPR and 11.7% Dividend yield).
Bamburi Cement also released its FY11 results with a 28% increase in FY11 revenues to KES 36bn. This was on the back of growth in domestic and export volumes from the new line in Uganda. Additionally, stable domestic prices and a weak shilling leading to better export prices boosted revenue growth. Operating profit edged up 7.2% to KES 8bn. Operating margin was however squeezed 377bps to 22.2% as a result of higher operating costs. A dividend of KES 8.00 per share was declared (FY10 KES 7.00).
NIC Bank recorded a 46.7% growth in FY11 EPS to KES 6.72. Interest income rose 38.2% to KES 6.8bn with income from loans and advances growing 37.2% to KES 6bn. The bank managed to grow its loan book by 38.9% to KES 57bn. Loan loss provision declined 18.5% to KES 0.3bn. The bank’s cost to income ratio came in at 42.0%. A dividend of KES 0.25 was declared (FY10: KES 0.25). The bank will be seeking approval from shareholders for a rights issue at the AGM.
Pan Africa Insurance recorded a 25% drop in FY11 earnings to KES 443m following a 20.6% drop in total income (to KES 3.9bn). Net written premium was down 6.9% (to KES 3.3bn), reflecting reduced purchasing power of individual and corporate clients. The group also recorded a KES 896m fair value loss due to unrealised losses in the marked to market bonds and equities portfolios. A first and final dividend of KES 2 per share (2010: KES 3 before a 1:1 bonus share issue) was recommended.
Source: African Alliance