Citibank trumps competition
17 April 2013, 11:26
NAIROBI - Citibank Kenya has been voted the best bank in the country, beating 42 other local banks as well as multi-national financial institutions.
According to the findings of a banking survey by a consultancy firm RSM Savior, the bank, a local subsidiary of a US-based financial conglomerate, outperformed its peers in terms of balance sheet size, profitability, capital adequacy, liquidity, quality of the loan portfolio and growth over the previous year.
It was followed closely by Equity Bank and Victoria Commercial Banks in the first and second runners up positions, respectively.
The survey also assessed the performance of banks in relation to returns on equity and assets, growth in customer deposits and return on average shareholders’ equity.
"The performance analysis is based on the published results of banking institutions for the year ended December 31, 2012.
"The published results provide a synopsis of the performance of individual banks, the consolidated performance of the banking sector and the performance of the four categories of banks based on their deposit size,”
said Ashif Kassam, the chief executive of RSM Ashvir.
“This year, the rankings will be determined based on an analysis of selected key banking ratios and growth trends rather than absolute numbers, as we believe that this more accurately reflects the underlying performance of the banks,” he added.
According to the survey, a total of eight banks had a customer deposit base of more than Sh75 billion while three banks had a customer deposit base of between Sh50 billion (US$596 million) and Sh75 billion (US$894 million) during the financial year ending December 31.
During the period under review, profit before tax (PBT) for the entire banking industry rose 20.5 per cent to Sh107.9 billion from Sh89.5 billion in 2011. Gross non-performing advances remained at a similar level at 4.6 per cent of gross advances compared to 4.5 per cent in 2011.
RSM, one of the leading networks of independent audit, tax and advisory firms, spans the globe and is represented by 108 member and correspondent firms in 102 countries.
– CAJ News