This archive report was first published on 8 December 2019.
Published on December 8, 2019, a report by Cytonn Investment Company has ranked Kenya Commercial Bank Group as the most attractive listed bank in Kenya.
The report, which analyzed the third quarter results of the listed banks, found that KCB's strong franchise value and intrinsic value score supported its good run.
The franchise score measures the broad and comprehensive business strength of a bank across 13 different metrics, while the intrinsic score measures the investment return potential.
According to the report, the increased emphasis on revenue diversification by banks seems to be bearing fruit, with the listed banking sector's average non-funded income (NFI) improving year on year.
David Gitau, Investment analyst at Cytonn Investments, noted that the average NFI growth was 15.8 per cent higher than 5.9 per cent growth witnessed in the third quarter last year.
The report identified five key drivers in the sector that contributed to KCB's success, including regulation, revenue diversification, SME focused lending, consolidation, and assets quality.
The 10 listed Kenyan banks recorded an 8.7 per cent average increase in core earnings per share, while deposits grew by 11 per cent, and an average loan growth came in at 11.6 per cent.
