NIC bank headquaters.[photo/nic-bank.com]

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Asset manager Cytonn Investments has acquired 7.5 million shares of NIC Bank.

According to Cytonn, the investments are its latest bets on banks it believes are cheap.

The company’s chief executive, Edwin Dande, has stated that the banking stock investments started with a large position in KCB in February last year.

“We believe the market was wrong and we bought a big stake in KCB which we have sold, earning a return of about 80 per cent,” Mr Dande is quoted by Business Daily.

“We are seeing the same thing at NIC where we have bought shares to become the ninth largest investor.”

He further stated that Kenyan banks have historically traded at between two to three times their book value.