Stake of banking tycoon James Ndegwa in NCBA Group gains $626,418 in 10 days

The stake of Kenyan multimillionaire businessman James Ndegwa in NCBA Group Plc has gained $626,418 (Ksh67.62 million) in 10 days on the back of a rise in the company’s share price.

The East African financial services conglomerate recorded a profit of $26.31 million (Ksh2.84 billion) in Q1 2021, which translates to an increase of 74 percent compared to the $14.82 million (Ksh1.6 billion) in profits that it posted in Q1 2020.

In the same quarter, the group’s total assets grew by six percent to $5.02 billion (Ksh542 billion), while customer deposits increased by 11 percent thanks to strong business development efforts that attracted new customers to the group.

These impressive results spiked investor buying interest. However, shares in NCBA Group are trading nearly three percent lower than its opening price of $0.248 (Ksh26.75) on Jan. 24.

As of press time, 10:00 am (UTC+1), July 12, the group’s shares were trading at $0.241 (Ksh26). At this price, its market capitalization was $396.84 million (Ksh42.84 billion).

NCBA Group is an East African financial services conglomerate headquartered in Nairobi, Kenya.

Aside from its operations in Kenya, the group has an operational footprint in Kenya, Tanzania, Rwanda, Uganda and Cote D’Ivoire.

In recent weeks, its shares on the Nairobi Stock Exchange have increased from $0.232 (Ksh25.00) per share on July 2 to $0.241 (Ksh26.00) per share on July 12. This translates to a four-percent gain for shareholders.

Ndegwa, the former chairman of the Capital Markets Authority and son of the late Kenyan economist Philip Ndegwa, is the group chairman of NCBA Group.

The multimillionaire businessman owns a four-percent equity stake in the financial services group, which amounts to 67,615,945 issued ordinary shares.

Research by Billionaires.Africa revealed that his equity position’s market value has risen from $15.66 million (Ksh1.69 billion) to $16.29 million (Ksh1.56 billion) between July 2 and July 12.

This translates to a gain of $626,418 (Ksh67.62 million) for the multimillionaire in 10 days.