{{Equity Bank gained four per cent at the stock market on Tuesday as positive investor reaction to first quarter results and planned expansion of its payments business continued.}}
The counter closed the day on a five week high at Sh34 up from Sh32.75 on a volume of 2.95 million shares, dominating the trading in the banking segment of the market.
The bank’s net profit stood at Sh3.88 billion in the three months ending March, compared to Sh3.21 billion for a similar period the year before.
It announced last week that it would from next month issue 300,000 smartphones to retailers to facilitate cashless tap-and-go (Near Field Communication- NFC) transactions using the new micro chip ATM cards.
The move is expected to boost the bank’s income from its payments processing business, which brings in an average of Sh40 million monthly in revenue from commissions on payments processing volumes of about Sh1.8 billion every month.
Equity has also been looking to expand its non interest income, and recently acquired a Mobile Virtual Network Operator (MVNO) licence as it looks to the mobile industry potentially in money transfer.
“Last year, the bank was actively involved in developing its infrastructure in line with its growth strategy. The lender has also expressed plans to expand into five other countries within a five-year span,” said Genghis Capital in a coverage note on the bank.
Standard Chartered also opened the week on a gaining note with investors looking to take a position ahead of closure of books on a Sh14.50 dividend on April 24.
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