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Kenyan multimillionaire banker Andrew Ndegwa has suffered a Ksh294.28-million ($2.65 million) loss in the last 59 days, as shares in the Kenya-based financial services conglomerate NCBA Group retreat from record highs.
NCBA Group is a Nairobi-based financial services conglomerate functioning as a non-operating holding through its broad network of subsidiaries in Tanzania, Rwanda, Uganda and Cote d’Ivoire.
It offers personal, business, corporate and investment banking services through five wholly owned subsidiaries, including National Industrial Credit Trustees Limited and Mercantile Finance Company, among others.
Ndegwa, who is the executive director of First Chartered Securities Limited, holds a substantial 4.3-percent stake in the group. He is also a non-executive director.
The recent decline in the market value of his stake can be linked to a 14.7-percent decline in NCBA stock price, as investors booked profit after U.S. credit rating agency Fitch Ratings assigned the group’s default and viability ratings a negative outlook.
On Aug. 31, the group’s shares surged to a record high of Ksh28.15 ($0.2531), as investors reacted to a 77-percent growth in profit from KSh2.8 billion ($25.9 million) to N5.1 billion ($46.0 million) in the first half of 2021.
The group’s bottom-line performance for the period came off strong growth in its total interest income that more than doubled in the half-year period.
Since Aug. 31, investor profit-taking actions and portfolio-rotation activities have seen the market price of NCBA shares slide from Ksh28.15 ($0.2531) to Ksh24 ($0.2158) as of the time of writing.
The downward price movement in the NCBA stock price has led to a 14.7-percent loss for shareholders in 59 days.
Meanwhile, the market value of Ndegwa’s stake has declined from Ksh2 billion ($17.9 million) on Aug. 31 to Ksh1.7 billion ($15.3 million) on Oct. 29.
This translates to a Ksh294.28 million ($2.65 million) loss for the multimillionaire in 59 days.
