I&M takes top ranking as best lender in Q1 of 2020

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I&M Bank has taken the top position as the best-ranked bank in Kenya for the first quarter of 2020. According to the report by Cytonn Investments Limited, the lender outshined other banks in terms of operational metrics in place, such as loan book quality.

In the report dubbed, “‘Deteriorating Asset Quality amid the COVID-19 Operating Environment’ Cytonn investment analyze listed banks for quarter one 2020. The result has I&M emerge as the most attractive lender with an improvement of non-performing loans(NPLs) ratio. I&M’s NPL ratio took a positive turn, dropping to 11.3 percent from 13 percent to align with the sector’s average rate. 

Co-op Bank took the second position with an NPL ratio of 10.8 percent for Q1 ending March. That was a drop from the financier’s 11.2 percent NPL ration in December. The NPL ratio drop was significant enough to help Co-op Bank improve the franchise value score.

Cytonn’s report further lists a significant decline in the overall banking sector. Banks recorded a drop in core earnings per share with a 7.4 percent average decline amidst the Coronavirus pandemic. That is despite a deposit growth at 14.3 percent, a rise from the last 11 percent growth from Q1 2019.

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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