Co-op Bank and I&M Top in latest financial institutions rating

Co-operative Bank move to position 2 in the new ratings.

The Co-operative bank of Kenya has been ranked among the top two country’s financial institutions. This is according to an analysis of the financial performance of listed banks done the Cytonn Financial Services, for the first quarter of 2020.

Despite the currently tough operating environment, country’s banking sector has showed a resilient performance, according to the research. In a press brief seen by the Kenyan Report, the bank has improved from its previous ranking of position 3, due to an improvement in in its Gross NPL ratio.

”Co-operative Bank of Kenya Ltd whose rank improved from Position 3 in FY’2019 mainly due to an improvement in the Gross NPL ratio to 10.8% in Q1′ 2020 from 11.2% in FY’2019, in turn improving its franchise value score,” the report reads in part.

The report however highlights that banks reported a decline in the quality of their loan books as a result of compliance with the new accounting rules set up the government. This decline can also be explained by the cautious stance banks have taken to mitigate the adverse impacts of COVID-19.

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    Written by Albert

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