The Co-operative Bank of Kenya has emerged top as the leading lender after it registered a credit growth of 15 percent beating all the listed financial institution at the Nairobi Security Exchange.
At the end of the month of March, Co-operative Bank’s loan book stood at 15 percent more than the previous year followed by Kenya Commercial Bank with 14.3 percent, Stanbic Bank Kenya with 11.4 percent and Barclays with 10.7 percent.
The bank was followed by KCB at 14.3 per cent growth, Stanbic Kenya’s 11.4 per cent jump to Sh115.3 billion and Barclays’ 10.7 per cent to close at Sh168.7 billion.
The rise in credit for Co-op comes even as the cap in interest rates rules on with many banks having registered a drop in their first quarter results with all attributes for the fall going to the interest capping law.
According to statement contained in Cytonn Investments’ weekly report, “The Bank (Co-operative Bank) seem to be benefiting from the first mover advantage during the time when there was no clarity on loan pricing mechanism following the Banking Act Amendment Act 2015,”
Two banks among the listed lenders registered a contraction in their loan books led by National Bank of Kenya and Equity Bank Group. National Bank of Kenya registered the largest drop in loan book to 58.1 billion shillings from 66.3 billion shillings recorded in 2016, this being a drop of 12.3 percent. Equity bank’s loan book, on the other hand, stood at 261 billion shillings from 275 billion shillings.