Top banks in Kenya defied waves in the global financial market to increase their primary funding while just above half of their continental peer recorded significant drops.
According to the latest report rating banks in Africa by the Banker, top lenders in the country gain in the top 100 banks ranking, with Cooperative Bank slipping into top 30 category to join Equity and KCB Group.
According to the annual ranking for 2023 released last week, Co-op Bank improved six places to rank position 30, having grown it’s Tier I capital by 6.3 per cent to $753 million or Sh110.7 billion.
Tier 1 capital consists of shareholders’ equity and retained earnings, which are disclosed on their financial statements. It is a primary indicator used to measure a bank’s financial health.
Co-op Bank has had good tidings in the past and current financial years, recently dethroning KCB Group as the second most traded counter at the Nairobi Securities Exchange (NSE).
The lender’s total market capitalization closed September at Sh70 billion, opening a solid Sh4 billion gap against KCB, the leading bank in Kenya in terms of total assets.
Although the Banker’s top 100 ranking did not give reasons for Co-op Bank’s stability, analysts told the Star that the lender is reaping dividends for its association with the cooperative movement in the country.
“Apart from the bank’s broad growth strategy developed in 2019 to grow an asset base, the lender is reaping big from its association with 15 million Sacco members,” IDX Capital financial analyst Carol Kemunto said.
The cooperative society movement is getting stronger in the country, with top Saccos hitting over Sh500 billion in assets.
Equity Bank Group which recorded the highest Tier 1 capital growth of 19.7 per cent was ranked the most steadfast bank in the country, gaining marginally to rank position 20 in the continent.
The report shows, Equity Bank’s Tier 1 capital rose by 19 per cent to $1.44 billion (Sh210 billion) in the financial year ended December 31, 2022.
Other local lenders that made it to the top 100 list includes KCB, NCBA and DTB Bank.
