The Central Bank of Kenya (CBK) has released the 2022 Bank Supervision Annual Report in line with its mandate of promoting and maintaining the safety, soundness and integrity of Kenya’s banking system.
Although banks continue to operate in a challenging business and operating environment, the sector has proven to be resilient, recording a strong 2022 performance with an overall sectoral PBT of Kes 240.4 billion which represents a 22% growth.
Looking inwards, Kingdom Bank was among the top climbers among the Tier 3 banks, having significantly improved its position with regards to profitability and capital and risk-weighted assets in the 2022 rankings as indicated below.
One may ask, why is profitability so important for banks? In the report by CBK, Kingdom Bank grew its PBT from Kes 512 million in 2021 to Kes 804 million in 2022, indicating a 57% jump in profit before tax is applied.
This simply means that, in 2022, the Bank was able to generate higher returns from the resources it had at hand which presents multiple benefits for customers including network expansion and countrywide coverage, as can be witnessed by the recent opening of Kingdom Bank’s Eldoret and Kisumu branches.
Customers also have the assurance that the Bank is a performing entity. Moving 5 steps up in the profitability ranking speaks volumes of the potential of the Bank and reinforces its capacity to support its customers to grow and attain their financial goals.
For the capital and risk-weighted assets, this indicates that Kingdom Bank continues to build its capital buffers which give both retail and business customers the ability to access higher loans (as guided by the Bank’s credit policies) at competitive rates to the tune of up to Kes 300 million.
The takeout
Kenya’s banking sector has a total of 39 registered and operational banks giving customers multiple options for selecting a banking partner of choice. From the CBK 2022 Bank Supervision Annual Report, Kingdom Bank is becoming a strong player in the industry and should be considered by individuals, chamas and businesses looking to grow!