Market Performance

The equities market registered mixed performance during the week, reflecting cautious investor sentiment amid continued foreign outflows and sector-specific earnings announcements.

• NASI: ↑ 0.3% – the only index to post gains
• NSE 10: ↓ 0.9%
• NSE 25: ↓ 0.7%
• NSE 20: ↓ 0.7%

Year-to-date (YTD), the market remains strongly positive across all indices, supported by robust corporate earnings and improving macroeconomic stability:

• NSE 20: +53.4%
• NASI: +49.9%
• NSE 10: +45.4%
• NSE 25: +45.1%

Weekly performance was weighed down by notable declines among key large-cap counters, including:

• Absa Bank (–8.4%)
• Co-operative Bank (–3.4%)
• Stanbic Bank (–2.6%)

However, market losses were tempered by gains in:

• Safaricom (+2.8%)
• NCBA (+1.5%)

The resilience of Safaricom—Kenya’s largest counter—played a crucial role in keeping the overall market stable.

Market Activity

Market activity picked up modestly during the week:

• Equities turnover: ↑ 6.0% to USD 29.4 million, from USD 27.8 million
• YTD turnover: USD 957.2 million

Foreign investors maintained their selling momentum for the seventh consecutive week, driven by global risk-off sentiment and rising dollar strength:

• Net foreign outflows: USD 6.4 million (previous week: USD 3.0 million)
• YTD net selling: USD 88.2 million

Foreign participation remains high, but sustained outflows suggest continued caution among global investors toward frontier markets.

📊 Weekly Corporate Highlights

A number of listed banks released their Q3’2025 financial results, providing key insights into sector health, asset quality, and profitability.

1. KCB Group – Q3’2025 Results

Key Take-Outs

• Earnings: EPS grew marginally by 0.7% to Kshs 19.1, supported by a 4.5% rise in total operating income.
• Expenses: Operating expenses increased 2.1%, slower than income growth.
• Asset Quality: Gross NPL ratio improved to 17.2% (from 18.1%).
• Balance Sheet: Total assets expanded 2.6% to Kshs 2.04 trillion, supported by higher government securities holdings.

2. I&M Group – Q3’2025 Results

Key Take-Outs

• Earnings: EPS grew 24.2% to Kshs 6.9, driven by a 20.2% jump in operating income.
• Asset Quality: Gross NPL ratio improved to 10.2% (from 11.8%).
• Balance Sheet: Total assets expanded 12.8% to Kshs 640.4 billion.
• Lending: Net loans rose 7.3%.
• Dividend: Interim dividend of Kshs 1.5, annualized dividend yield at 7.0%.

3. DTB Kenya – Q3’2025 Results

Key Take-Outs

• Earnings: EPS increased 12.3% to Kshs 29.9.
• Asset Quality: NPL ratio improved to 12.4% (from 13.5%).
• Balance Sheet: Total assets increased 8.7% to Kshs 641.8 billion.
• Lending: Customer loans increased 7.8%, showing continued appetite for credit expansion.

4. Absa Bank Kenya – Q3’2025 Results

Key Take-Outs

• Earnings: EPS grew 14.7%, supported primarily by a significant 13.9% reduction in operating expenses.
• Asset Quality: Deteriorated — NPL ratio rose to 13.0% from 12.6%.
• Balance Sheet: Total assets increased 14.4%, driven by a 71.1% increase in government securities.
• Lending: Loan book contracted slightly (–0.6%) due to high industry NPLs.

5. NCBA Group – Q3’2025 Results

Key Take-Outs

• Earnings: EPS increased 8.5% to Kshs 9.9.
• Asset Quality: Improved — NPL ratio decreased to 12.1%.
• Lending: Loan book contracted 2.6%, reflecting cautious credit risk management.
• Balance Sheet: Total assets contracted 2.0% to Kshs 665.3 billion.

6. Stanbic Bank – Q3’2025 Results

Key Take-Outs

• Earnings: EPS declined 7.7% due to lower operating income.
• Asset Quality: Improved — NPL ratio down to 8.2% (from 10.4%).
• Balance Sheet: Total assets increased 3.0%.
• Lending: Customer loans grew 15.7%, supported by stable economic conditions and CBR easing.

🧩 Overall Market Insight

The week’s mixed market performance reflects a balancing act between earnings optimism and persistent foreign outflows. Banking sector earnings remained generally strong, with many banks reporting improved asset quality and income growth—although cost pressures and selective loan book contractions persist.

As we move toward year-end, key watchpoints include:

• Foreign investor flows
• Corporate earnings momentum
• Direction of monetary policy
• Shilling stability
• Global risk appetite for frontier markets

#KenyaMarkets #EquitiesUpdate #NairobiSecuritiesExchange #KenyaStocks #InvestmentInsights #MarketAnalysis #BankingSector #NupathAdvisory #FinancialResults #InvestorUpdates