Home ECONOMY Ranking of the most profitable Kenyan banks

Ranking of the most profitable Kenyan banks

by biasharadigest

Top Banks in Kenya: The month of March is usually a financial release season for banks in Kenya. This period gives Kenyans a peak into how local banks are performing. As the results for the financial ended December 2019 trickle in, we have compiled a list of the top banks in Kenya by profitability as per their posted net profit:

1) Kenya Commercial Bank

KCB Group net profit for the full-year to December 2019 grew by 4.8 percent to Sh. 25.1 billion from Sh. 23.99 billion the previous year bolstered by growth in interest income from consolidated book with National Bank of Kenya. The lender’s assets stand at Sh. 898.5 billion from Sh. 714.3 billion edging it closer to the Sh. 1 trillion psychological mark for the country’s largest bank by assets. The Group’s net interest income expanded 14.9 percent to Sh. 56.1 billion last year from Sh. 48.8 billion in 2018.

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2) Equity Bank Group

Equity Group’s net profit for the year ended December 2019 grew 13.8 percent to Sh. 22.6 billion, driven by increased interest and non-interest income. The rise in profits, from Sh. 19.8 billion in 2018, came on the back of a 23 percent growth in its loan book to Sh. 366.4 billion. Net interest income, mainly from loans and advances to customers, increased by 8.6 percent to Sh. 44.98 billion. Non-interest income, usually from fees and commissions, rose 19 percent to Sh. 30.78 billion, increasing its share in operating income.

3) Co-operative Bank

Co-operative Bank Group’s net profit grew 12.4 percent to Sh. 14.3 billion last year, lifted by strong growth in non-interest income. Total non-interest income, mainly from fees and commissions on loans and advances, increased by 33 percent from Sh. 12.8 billion to Sh. 17.3 billion. M-Co-op cash was pivotal in the growth of non-funded income as registered customers hit 4.8 million, helping it disburse loans valued at over Sh. 43.1 billion as at end of December 2019. The growth in its bottom-line was further supported by 1.4 percent growth in total interest income to Sh. 43.64 billion even as loan book expanded by 8.7 percent to Sh. 266.71 billion.

4) Standard Chartered Bank Kenya

Standard Chartered Bank Kenya Limited registered a marginal 1.7 per cent increase in net profit in the year ended 2019. Net profit increased slightly from Sh. 8.1 billion in 2018 to Sh. 8.2 billion in the year ended 2019.In the same period, the net operating income increased slightly, from Sh. 28.6 billion to Sh. 28.7 billion. The bank also observed a 6.2 per cent increase in total assets over the year, with the asset value climbing from Sh. 285 billion to Sh. 302 billion.

5) NCBA Group

The bank reported Sh. 7.8 billion in profit after tax for the full year ended December 31, 2019. This was up from Sh. 5 billion reported over a similar period in 2018. This was the first combined earnings by the listed firm following a merger with NIC Bank last year. NCBA’s total operating income for the 12 months to December 2019 stood at Sh. 33 billion, representing a 59 per cent rise from Sh. 21.2 billion reported by CBA over a similar period in 2018.This included a Sh. 4.1 billion gain resulting from last year’s merger following NCBA’s adjusting of the acquired net assets to their fair value.

6) Absa Bank Kenya (Formerly Barclays Bank of Kenya)

Absa Bank Kenya posted a flat growth in net profit of Sh. 7.45 billion, slowed by costs incurred on rebranding from Barclays Kenya. The profit grew by 0.53 percent from Sh. 7.4 billion. The lender incurred Sh. 1.5 billion in the rebranding process, which led to name change from Barclays Bank to Absa Kenya in February. Net profit would have risen by 15 percent to Sh. 8.5 billion in the absence of the one-off cost, which was disclosed as an exceptional item in the income statement.

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