KCB Group has been ranked as the most attractive listed bank in Kenya in terms of having a better capacity to generate profits from its core business, according to the latest quarterly report by Cytonn Investments.
I & M Holdings was ranked second followed by Co-op Bank, Equity Group, Stanbic Holdings, Barclays Bank of Kenya, DTB Group, Standard Chartered Bank (Kenya) and HF Group.
KCB Group’s attractiveness is supported by a strong franchise value and intrinsic value score.
The franchise score measures the broad and comprehensive business strength of a bank across 13 different metrics, while the intrinsic score measures the investment return potential.
“Post interest rate cap, banks’ net interest margins are expected to increase on account of increased interest income following the repeal of the cap thus allowing loan pricing based on the credit risk of borrowers, coupled with low cost of funds aided by access to cheap deposits,” the Cytonn said.