This archive report was first published on 6 December 2019.
Kenya's listed banks have reported a 9pc increase in net earnings in the first three quarters of 2019, with net earnings rising to Sh83.9 billion from Sh77 billion in the same period last year.
The growth was largely driven by a 17pc increase in non-interest income, which rose to Sh108.08 billion, compared to a 2pc growth in interest income to Sh263.4 billion.
However, despite the improved performance, most lenders are expected to maintain dividend payouts within the 2018 range, with analysts suggesting that the effects of the rate cap repeal may not be felt until 2020.
Among the listed lenders, KCB Group's NBK subsidiary reported the biggest jump in net earnings, with a 18.5 times increase to Sh407 million.
Other top performers included KCB, which booked the largest net earnings at Sh19.16 billion, followed by Equity's Sh17.47 billion and Co-op Bank's Sh10.88 billion.
On the other hand, Housing Finance was the only loss maker, reporting a loss of Sh84 million.
Bad loans in the 11 listed banks rose 13.7pc to Sh273 billion as at September 2019, with NBK posting the highest non-performing loans ratio at 69pc.
Overall, the banking sector's gross earnings rose by 9pc to Sh125.3 billion in the period to September, compared to Sh115.2 billion over the same period last year.
According to the Central Bank of Kenya's monthly economic indicators report, overall liquidity in the sector remained high at 50.9pc as at the end of September.
