By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Youth Village KenyaYouth Village KenyaYouth Village Kenya
  • Home
  • Education
  • Employment
  • Entertainment
    • Celebrity News
    • Celebrity Interviews
    • Sports
    • Fashion
    • Politics
    • Tech
  • Opportunities
  • Health
  • Contact Us
Search
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Reading: Most Stable And Unstable Banks In Kenya According To Cytonn Banking Report 2016
Share
Sign In
Notification Show More
Font ResizerAa
Youth Village KenyaYouth Village Kenya
Font ResizerAa
Search
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Youth Village Kenya > Blog > Business > Most Stable And Unstable Banks In Kenya According To Cytonn Banking Report 2016
Business

Most Stable And Unstable Banks In Kenya According To Cytonn Banking Report 2016

Editor
Last updated: 2016/06/20 at 10:32 PM
Editor
Share
4 Min Read
SHARE

Months after the Kenyan banking industry financial health was in crisis, we can now tell from Q1 2016 Cytonn Banking Report which banks are now stable and healthier.

Contents
FUTURE PERFORMANCE AGGREGATE GROSS LOANS

According to the report KCB Group emerged top in Q1’2016 Cytonn Banking Report, supported by a strong franchise and intrinsic value score while National Bank was ranked the lowest, ranking lowest in both franchise and intrinsic value score.

Equity Group emerged second, followed by Co-operative Bank of Kenya, with Barclays Bank of Kenya emerging fourth, and I&M Bank ranked fifth.

Diamond Trust Bank declined three positions to position …6, mainly as a result of a drop in franchise ranking due to lower Return on Equity of 16.0%, compared to the industry average of 18.6%.  It also ranked poorly in revenue diversification with Non Interest Income to Total Revenue of 20.5%, against an industry average of 28.7%. CfC Stanbic declined three positions to position 9, affected by both poor franchise and total return score.

Ranking By Franchise Value Image Courtesy: Cytonn Investments

Ranking By Franchise Value
Image Courtesy: Cytonn Investments

The low franchise score was due to a low Net Interest Margin of 5.3% against an industry average of 8.3%.

FUTURE PERFORMANCE

The report themed ‘Transition continues, to a new and different landscape’analyzed all listed banks in the Kenyan market so as to recommend to investors which banks are the most stable from a franchise value and future growth opportunity perspective.

“The analysis covers the health and future performance of the financial institution, by highlighting their performance using… metrics that measure profitability, efficiency, growth, asset quality, liquidity, revenue diversification, capitalization and intrinsic valuation. The overall ranking was based on a weighted average ranking of Franchise value (accounting for 40%) and Intrinsic value (accounting for 60%),” said Elizabeth Nkukuu, Cytonn’s Chief Investment Officer.

Ranking By Intrinsic Value Image Courtesy: Cytonn Investments

Ranking By Intrinsic Value
Image Courtesy: Cytonn Investments

Banking sector in Kenya experienced growth in Q1’2016 in assets, deposits, profitability and products offering, and this was supported by increased use of alternative channels of distribution and the favourable macroeconomic environment.

AGGREGATE GROSS LOANS

The listed banks aggregate gross loans and advances grew by 14.6% to Kshs. 1.7 trillion in March 2016 from Kshs. 1.5 trillion in March 2015 while deposits grew by 11.5% to Kshs. 2.0 trillion in March 2016 from Kshs 1.8 trillion in March 2015.

Total assets grew by 10.5% in March 2016 to Kshs 2.8 trillion, from Kshs 2.5 trillion in March 2015. Since 2010, deposits have grown at a CAGR of 15.1%, with loans and advances having grown faster than deposit at a CAGR of 18.7%.

ranking 3

Composite Bank Ranking, Image Courtesy; Cytonn Investments

For Q1’2016, listed banks recorded a core earnings growth of 13.5% compared to 8.6% in Q1’2015 as a result of improved economic conditions in the country.

“The growth in Kenya’s banking sector can be attributed to increased use of alternative channels of distribution such agency, mobile and internet banking in deposit mobilisation and loan disbursement, branch network expansion strategy both in Kenya and in the region and the banks among other reasons said Maurice Oduor, Investment Manager.

You Might Also Like

Build a Powerful Online Presence with Paid Article Placement in Kenya

Corporate Governance Scores Drop Among Kenyan Companies, Says CMA 2023/2024 Report

Botswana Businesses Relaunches as the Premier Resource for Entrepreneurs and Business Leaders

10 Things You Should Know About Tom Gitogo

10 Things You Should Know About Peter Ndegwa

TAGGED: banks, Business, CYTONN, equity, KCB

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
[mc4wp_form]
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Editor June 20, 2016 June 21, 2016
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article How To Create Your Speech Outline In 5 Minutes
Next Article Anyone Who Reports Any Case 0f A Guinea Worm Infection In Kenya Can Still Win Sh100,000 Reward
- Advertisement -

Latest News

Samidoh Under Fire After Politically Charged Chant, Shares Defiant Post from the UK
Entertainment May 30, 2025
Wycliffe Oparanya Beams with Pride as Son Graduates from Princeton University
Life Style May 30, 2025
Kenya Mourns the Death of Literary Icon Ngugi wa Thiong’o as Daughter Wanjiku Pays Emotional Tribute
Breaking News May 30, 2025
Juma Jux and Priscilla Ojo’s Glamorous Wedding Sparks Talk as He Urges Bahati to Marry Diana Marua
Entertainment May 30, 2025
Mulamwah and Ruth K Spark Reconciliation Rumours After Birthday Post Drama
Entertainment May 30, 2025
Blogger Njambi Fever Welcomes Baby Girl Weeks After Civil Wedding
Life Style May 29, 2025
Karen Nyamu Jokes About Wanting a Baby with Every Man She Dates in Candid Chat with American Woman
Entertainment May 29, 2025
Kenyan Celebrities Stun at Juma Jux and Priscilla Ojo’s Glamorous Wedding in Tanzania
Entertainment May 29, 2025
- Advertisement -
Follow US
© 2023 Youth Village Kenya By Nine80 Digital Media
Welcome Back!

Sign in to your account

Lost your password?