Factoring in the absorption of their new NBK subsidiary, KCB’s numbers increased their lead at the top of Kenya’s bank table, with assets of Kshs 786 billion (~$7.86 billion). They are followed by Equity (Kshs 507 billion assets), which also increased its capital by almost Kshs 30 billion – probably muscle for its regional deals.
The only major change is with NCBA entering the top 3, after the assets and liabilities of NIC were transferred into CBA in October 2019. NCBA had bank assets of Kshs 465 billion and a pre-tax profit of Kshs 9.2 billion that was further reduced by exceptional merger costs of Kshs 1.1 billion.
The financial statements published today are a continuation of CBA’s and they show that timing of the transfer resulted in a “bargain purchase gain” of Kshs 4.1 billion.
Cooperative Bank is fourth (Kshs 449 billion assets), but may overhaul NCBA by the end the year, while fifth is Absa Kenya whose 2019 results were announced yesterday.
An interesting race mix is next with Standard Chartered, Stanbic Bank and Diamond Trust all closely bunched at about Kshs 300 billion of assets, and rounding out the top ten are I&M and Baroda Bank.
The year 2020 has started with a lot of economic uncertainty economic caused by the Corona virus pandemic with the possibility of strain at some banks. At their results briefing yesterday, Absa Kenya CEO Jeremy Awori said that such times also create opportunities for new partnerships as Absa’s growth plans include targeted acquisitions and disposals. Already Jamii Bora and Cooperative banks are in discussions about a buyout, while there are other small banks that were already in need of a boost.
Comparative Rankings (to last year):
1 (1 + 12) KCB. (+NBK)
2 (2) Equity.
3 (8 + 10) NCBA.
4 (3) Co-operative.
5 (4) Absa (Barclays) Kenya.
6 (5) Standard Chartered Kenya
7 (7) Stanbic Kenya.
8 (6) Diamond Trust.
9 (9) I & M.
10 (11) Baroda.