CFC Stanbic ranked best bank by Cytonn Investments
Pedestrians walk past a CFC Stanbic Bank branch in Nairobi. PHOTO | FILE
What you need to know:
CFC Stanbic which ranked best in 3 out of the ten parameters used by the firm to rank the 11 listed lenders was feted best specifically for long term investment.
Equity bank and KCB closed the list of the top five banks to invest in as National bank and Housing Finance were ranked last in the list of 11.
CFC Stanbic Bank has been ranked the best listed bank for investors in the Kenyan financial sector.
According to a report released by Cytonn Investment on the investment attractiveness of listed banks in Kenya, the lender beat 10 other banks to rank number one.
Cytonn chief executive Edwin Dande said the bank’s business model makes it particularly attractive for long term investors since it makes more money from non-interest income and have high yielding business diversity.
“They have a lot of businesses that are mainly lucrative, which means that even at a time the economy goes down they are relatively able to weather the storm. They get a lot of deposits for every branch they open hence have enough room to lend compared to other banks who engage in expensive deposit mobilisation strategies," Mr Dande said.
The ranking that included equal weighted parameters of Loans to Deposit ratio, cost to income ratio, Return on Asset Capital Employed (ROACE), Price per tangible book value, non-interest income revenue, camel rating and four other parameters ranked I&M bank second and Standard chartered bank third.
