East African banks remained resilient with higher Return on Equity (ROE) for the 12 months to September 30 signalling a relatively healthy performance for the regional lenders with shareholders deriving value from their investments amid the Covid-19 pandemic. FILE PHOTO | COURTESY Latest quarterly market report by analysts at AfricanFinancials Group shows that Kenyan banks dominated the list of regional lenders with higher ROE as eight lenders led by Equity Bank returned an average ROE of 14.37 percent during the period under review.
ROE is a measure of the financial performance of a company that is calculated by dividing its total net income by the shareholder equity.
East African banks remained resilient with higher Return on Equity (ROE) for the 12 months to September 30 signalling a relatively healthy performance for the regional lenders with shareholders deriving value from their investments amid the Covid-19 pandemic.
Latest quarterly market report by analysts at AfricanFinancials Group shows that Kenyan banks dominated the list of regional lenders with higher ROE as eight lenders led by Equity Bank returned an average ROE of 14.37 percent during the period under review.
These lenders included Equity bank (18.3 percent), followed by KCB (17.9 percent), Absa Kenya (17.6 percent), Standard Chartered Bank Kenya (16.1 percent), I&M Bank (14.9 percent), Co-operative Bank (12.8 percent), Stanbic Kenya (11.9 percent) and NCBA (6.3 percent).
ROE is a measure of the financial performance of a company that is calculated by dividing its total net income by the shareholder equity.
According to the report titled The East Africa & Mauritius Top 30 Companies, Tanzania’s NMB and CRDB banks posted ROE’s of 20.6 percent and 17.7 percent respectively.
Uganda’s Stanbic Bank and Rwanda’s Bank of Kigali (BoK) had their ROEs at 21.8 percent and 17.4 percent respectively.
Mauritian MCB and SBM banks posted ROEs of 11 percent and 3.7 percent respectively
Last year, Kenyan banking sector registered a decline in performance with profit before tax decreasing by 29.5 percent to Ksh112.2 billion ($1.1 billion) from Ksh159.1 billion ($1.43 billion) in 2019 with the decrease in profitability attributed to a higher increase in expenses (Ksh77.47 billion, $697.92 million) compared with an increase in income (Ksh30.54 billion, $275.13 million), according to Central bank’s Bank Supervision Report (2020). Lead position
In Tanzania, NMB and CRDB continued their twin dominance of the banking sector in 2021 third quarter results published last week, registering combined assets that surpassed the total assets of the next […]