This archive report was first published on 30 August 2019.
Published on August 30, 2019, Kenyan companies listed on the Nairobi Securities Exchange (NSE) have been rushing to report their half year financial results, with many firms releasing their reports in the final week leading up to the deadline.
The firms, like their Kenyan citizens, have been waiting until the last minute to submit their reports, resulting in a surge of financial results in the business news cycle.
According to the Capital Markets Authority (CMA) handbook, companies on the NSE are required to submit their half year financial reports within 60 days of the interim reporting date, which is June 30 for companies with a financial year that begins on January 1.
However, the CMA accepts half year reports until the end of August, giving companies a bit of leeway to meet the deadline.
Among the firms that released their half year results in the final week of reporting were Standard Chartered Bank, Kenya Airways, Liberty Kenya, and Total Kenya, as well as BOC Kenya, Jubilee Holdings, Barclays Bank of Kenya, and Nation Media Group.
Other banks that released their half year financials during this period included KCB, Equity, Stanbic, Co-op Bank, and Diamond Trust Bank (DTB), as well as Crown Paints, Kenya Re-Insurance, and Sanlam Kenya.
Some companies, such as Safaricom, which has a financial year that begins in April, still have some time to meet the deadline.
The banks' performances have been affected by a combination of factors, including stiff international financial reporting standards, a slowing economy, and the rates cap law.
Available financial results show that KCB Group's provisions for bad loans increased from Ksh800 million in the first six months of 2018 to Ksh3 billion in the six months ending June 30, making it the most profitable lender in Kenya.
Equity Bank also doubled its loan-loss provisions to Ksh450.6 million at the end of June 30, 2019, up from Ksh259.4 million as at the end of the same reporting period last year.
Co-operative Bank of Kenya expanded its bad loans provisions from Ksh1.05 million last year to Ksh1.15 million over the past six months of this year.
“This big increase in loan provision is mostly due to the impact of day one adjustments done during the implementation of IFRS 9 last year,” said KCB Group Chief Finance Officer Lawrence Kimathi, speaking at a recent investor briefing.
