Site icon MONEYINAFRICA

Banks’ assets up over Sh500bn in Q3 on high deposits – CBK

Banks' assets up over Sh500bn in Q3 on high deposits - CBK

Coop Bank Group managing director Gideon Muriuki at a past event. Assets of banks operating in Kenya grew by half a trillion shillings in three months from June to September 30.

According to Central Bank of Kenya’s third quarter Commercial Bank Credit Officer Survey covering 39 banks, aggregate balance sheet increased by 2.5 per cent to Sh5.8 trillion in September from Sh5.27 trillion billion in June.

This growth is attributed to high deposits recorded as businesses slowly recover from Covid-19 economic pressures.

Co-operative Bank Group solidified its position as the third largest lender in Kenya, leading the pack with a 16.1 per cent growth in total assets during the period under review.

According to the bank’s financial results total assets now stand at Sh592.9 billion, having grown by Sh82 billion from Sh510.9 billion it had same period last year.

Co-op Bank’s customer deposits grew 12 per cent from Sh375.5 billion to Sh420.4 billion, edging out its perenanual rival NCBA Bank to fourth position in terms of assets. NCBA’s assets grew eight per cent to Sh563 billion.

KCB Group’s balance sheet size grew by 15 per cent to Sh1.122 trillion. It was followed by Equity Bank whose total assets rose to Sh1.2 trillion in Q3 compared to Sh1.1 trillion at the end of the period ended June 30, 2021.

According to the report by the apex bank, total deposits increased by 2.3 per cent from Sh4.24 trillion in June to Sh4.35 trillion in September.

Although all tier 1 banks reported high net earnings for the period, averaging above 50 per cent, their gross income dropped marginally compared to those recorded in half year.

Data from CBK shows quarterly profit before tax decreased by Sh 1.45 billion from Sh50.53 billion in June 2021 to Sh49.08 billion in September 2021.

This was as a result of a higher increase in expenses (4.7 per cent) as compared to an increase in income (2.2 per cent).Return on Assets decreased to 2.65 per cent in September 2021 from 2.71 per cent in June 2021.Gross loans increased by 2.7 per cent from Sh3.1 trillion in June , to Sh3.2 trillion in September 2021. The growth in gross loans was mainly due to increased advances in the Trade and Real Estate sectors.Kenya’s banking sector asset quality, measured by gross nonperforming loans to gross loans ratio improved from 14 per cent in June 2021, to 13.6 per cent in September 2021.This was attributed to a 2.7 per cent […]

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.
Exit mobile version