East African Banks Rank Among World's Top Performers
East Africa's top banks are ranked among the world's 1,000 best lenders. They weathered a tough operating environment in 2019 to post stronger growth while cushioning themselves against further shocks.
The monthly London-based international financial affairs publication The banker owned by the Financial Times Ltd, shows that KCB, Equity, Diamond Trust Bank and Co-operative Bank, which are largely retail banks, remained resilient in a tough operating environment to maintain an upward growth in profitability.
They made significant strides in strengthening their balance sheets (assets) and increasing their Tier 1 capital in line with the Basel III requirements.
Tier 1 capital is largely primary funding source for banks, reserved to ensure banking operations are not disrupted or shut down during periods when lenders make losses.
"Banks are taking advantage of opportunities in the EAC and providing their regional customers with seamless service delivery," Habil Olaka, chief executive Kenya Bankers Association said.
According to the magazine, global banks' total profit increased by a paltry two per cent to $1.13 trillion in 2019 from $1.11 trillion in 2018.
This is largely due to tighter regulations, high capital requirements, competition from financial technology firms and low interest rates in Europe and the US which made earnings and banking profit so difficult to sustain... Read more on All Africa
Source: All Africa