Cytonn Investments has released a list of the best and worst banks in Kenya today. According to the Cytonn report, Equity Bank currently leads the pack while National Bank of Kenya sits at the bottom.
Equity Bank recorded a weighted score of 23.6 in the third quarter of the year. On the opposite extreme, NBK posted a weighted score of 56.2.
The report ranked KCB as the second best performer in the currently while Co-op Bank was ranked third.
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Standard Chartered Bank fell 2 positions to position 8 from position 6 in our H1’2016 Banking Sector Report as a result of its franchise value being weighed down by the bank’s loan to deposit ratio at 60.5%, against a preferential range of 80.0% – 90.0%, and high levels of non-performing loans.
Stanbic Holdings rose 1 spot to position 7 from position 8 in our H1’2016 Banking Sector Report, boosted by a higher Intrinsic Value score as the bank has the highest revenue diversification with a revenue mix of 58:42 Funded to Non-Funded income.
Below is the full list:
| CYTONN’S Q3’2016 BANKING REPORT RANKINGS | ||||||
| Bank | Franchise Value Total Score | Total Return Score | Weighted Q3’2016 Score | Q3’2016 rank | H1’2016 rank | |
| 1. | Equity Group | 53.0 | 4.0 | 23.6 | 1 | 1 |
| 2. |
KCB Group |
60.0 | 1.0 | 24.6 | 2 | 2 |
| 3. | Co-operative Bank | 59.0 | 7.0 | 27.8 | 3 | 3 |
| 4. |
I&M Holdings |
67.0 | 6.0 | 30.4 | 4 | 4 |
| 5. | Diamond Trust Bank | 64.0 | 9.0 | 31.0 | 5 | 5 |
| 6. | Barclays Bank | 71.0 | 8.0 | 33.2 | 6 | 7 |
| 7. | Stanbic Holdings | 87.0 | 2.0 | 36.0 | 7 | 8 |
| 8. | Standard Chartered Bank | 76.0 | 10.0 | 36.4 | 8 | 6 |
| 9. | NIC Bank | 90.0 | 3.0 | 37.8 | 9 | 9 |
| 10. | HF Group | 107.0 | 5.0 | 45.8 | 10 | 10 |
| 11. | National Bank | 124.0 | 11.0 | 56.2 | 11 | 11 |