Investors’ favourite bank stocks in April

April was the month that saw coronavirus spread to more places in Kenya and deaths from the disease increase in the country.

Despite the Covid-19 fallout that has slowed down investing as people hold on to cash in the face of economic uncertainty, some bank stocks caught the eyes of investors last month.

Here are the three bank stocks that investors jostled to purchase in April.

1. Equity stock jumps more than 10%
Equity Group Holdings (EQTY) stock rose 10.90% in April, making it investors’ top stock pick in the banking sector that month. The stock wrapped the month at Ksh37.65 a share.

Equity’s stock rise came on the back of the company delivering 14% increase in profit to Ksh22.6 billion for the 2019 financial year. Moreover, the stock rose after Equity said it would pay a dividend of Ksh2.50 per share this year, up from Ksh2 it paid last year.

2. KCB stock rises over 5.70%
KCB Group (KCB) stock jumped 5.71% in April to wrap up the month at Ksh37 a share. It was investors’ second-best bank stock pick in the month.

KCB made a profit of Ksh25.2 billion in the 2019 financial year, reflecting an increase of 5% from the previous year. The company plans to pay a dividend of Ksh3.50 per share this year, same as the dividend it paid last year.

3. Standard Chartered Bank stock jumps over 5.3%
Standard Chartered Bank Kenya (SCBK) stock jumped 5.34% in April to close the month at Ksh187.50. It took the spot as investors’ third-best bank stock pick.

Standard Chartered Bank, also known as StanChart, made a profit of Ksh8.1 billion in 2019, which reflected an increase of more than 1% from 2018. The company plans to pay dividend of Ksh20 per share this year, up from Ksh19 it paid last year.