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Commercial Banks

Selected Industry Results at a Glance

  • The overall industry performance for 2017 has improved from that in 2016 with Total Assets and Customer Deposits increasing by 9% (2016: 1.6%) and 11.5% (2016: 1.5%) respectively. Operating Income decreased by 2.5% in 2017 (10.8% up in 2016), PBT also decreased by 7.7% (10.9% up in 2016)

  • Investments in Government Securities increased by 17% in 2017 (24% up in 2016) from KSh 857bn in 2016 to KSh 1tn in 2017. This may be attributed to the banks’ reducing their lending to retail and corporate customers in favour of what they deem to be a safer investment in government securities

  • Industry Losses on Loans & Advances decreased by 7.1% which is a significant improvement from the increase of 22.7% registered in 2016. This positive trend can be seen in the industry’s Loan Loss Provisions which increased by 26.3% in 2017, compared to the 40.9% in 2016

  • Gross NPL have increased to KSh 265bn in 2017 from KSh 218bn in 2016, representing a 21.8% rise which is lower than the 31.6% recorded in 2016

  • Industry Insider Loans have reduced from KSh 101bn in 2016 to KSh 99bn in 2017. This may be as a result of the CBK’s continued tightening of regulation after the events of 2015 and 2016 that saw a number of banks placed under receivership

Overall Industry Results (Selected)

Overall Industry Growth Results (Selected)