The Central Bank of Kenya (CBK) 2016 banking supervision annual report shows that Co-op Bank had issued gross loans of Sh241.4 billion last year, ahead of Equity’s Sh221.03 billion.
In 2015, Equity had a larger loan book at Sh229.4 billion to Co-operative’s Sh212.7 billion.
Equity Bank in 2016 saw its holdings of government securities double to Sh100 billion from Sh42.8 billion in 2015.
KCB #ticker:KCB maintained its pole position as the lender with the largest book at Sh373.03 billion, up from Sh324.3 billion in 2015.
Barclays #ticker:BBK maintained its fourth position at Sh176.3 billion, up 18.5 per cent from 2015’s Sh148.8 billion.
Cooperative Bank of Kenya #ticker:COOP has overtaken Equity Bank #ticker:EQTY to hold the second largest gross loan book in the banking sector as at the end of 2016, reflecting the latter’s shift to government securities following the rate cap.
The Central Bank of Kenya (CBK) 2016 banking supervision annual report shows that Co-op Bank had issued gross loans of Sh241.4 billion last year, ahead of Equity’s Sh221.03 billion.
This is despite Equity being the second largest bank in Kenya by weighted market share of 10 per cent compared to Co-operative’s 9.9 per cent.
In 2015, Equity had a larger loan book at Sh229.4 billion to Co-operative’s Sh212.7 billion.
Equity Bank in 2016 saw its holdings of government securities double to Sh100 billion from Sh42.8 billion in 2015. It has justified the increased shift towards the fixed income market saying the rate cap has negatively affected yields on customer loans.
“Yields on loans are now lower due to the interest rate caps. You have to place a bet where the probability of winning is highest,” said Equity chief executive James Mwangi in the bank’s half-year results presentation last week.
Of the eight tier one lenders, only Equity and CBA recorded a fall in gross loans last year.
KCB #ticker:KCB maintained its pole position as the lender with the largest book at Sh373.03 billion, up from Sh324.3 billion in 2015.
Barclays #ticker:BBK maintained its fourth position at Sh176.3 billion, up 18.5 per cent from 2015’s Sh148.8 billion.
DTB #ticker:DTK and Standard Chartered #ticker:SCBK followed at Sh141.7 billion and Sh132.5 billion respectively, up from Sh128.3 billion and Sh122.9 billion.
Stanbic Bank’s #ticker:CFC loan portfolio grew by Sh15 billion to Sh118.5 billion as at the end of December last year. CBA’s portfolio fell to Sh105.08 billion from Sh107.68 billion.
The banking sector as a whole recorded a 5.6 per cent growth year-on-year in gross loans and advances to Sh2.286 trillion by the end of 2016. The annual growth rate in 2015 stood at 11.6 per cent, with the slowdown attributable to the rate cap and shift to government securities.
Interest income from loans and advances accounted for 59.6 per cent of banks’ total revenue which stood at Sh502 billion in 2016, but it grew at a much lower pace compared to revenue from government securities. CBK data shows the industry recorded a 2.4 per cent growth in interest income from loans last year.
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