Kenyan Business Feed
No Result
View All Result
Tuesday, March 2, 2021
Subscribe
  • Home
  • News
    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    AAR Insurance embrace paperless model with new mobile app

    AAR Insurance embrace paperless model with new mobile app

    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    Popular Journalist Dies In Gristly Road Accident

    Popular Journalist Dies In Gristly Road Accident

    Minet feted Insurance Broker of the Year

    Minet feted Insurance Broker of the Year

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    BBI will Create a good Business Environment: Mt Kenya MCAs Chairman

    BBI will Create a good Business Environment: Mt Kenya MCAs Chairman

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Aden Duale pushing to make pornography an expensive affair in Kenya

  • Markets
    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

    Hennessy becomes NBA’s first global spirit partner

    Hennessy becomes NBA’s first global spirit partner

    KenGen to Pay Ksh1.65 Billion in Dividends

    KenGens’ half year profits hit Ksh6.8 billion

    Suzuki unveils latest entrant into the Kenyan market

    Suzuki unveils latest entrant into the Kenyan market

    Kenya Breweries launches academy to train 10,000 bartenders

    Kenya Breweries launches academy to train 10,000 bartenders

    New Directory to Provide Support to women owned Businesses

    New Directory to Provide Support to women owned Businesses

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

  • Real Estate
    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

    Commercial office rents fall 13pc in quarter 3 & 4 of 2020

    New Construction Technology to help NHC deliver affordable homes

    New Construction Technology to help NHC deliver affordable homes

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    New Ksh350Million Commercial centre to be constructed in Athi River

    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

    Kenya’s position as a Digital Media Hub gaining momentum

    Kenya’s position as a Digital Media Hub gaining momentum

  • Tech
    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    2 Kenyans selected to create African Inspired stickers for New Chat App

    2 Kenyans selected to create African Inspired stickers for New Chat App

    Mobile Phones contribute to the realisation of UN SDGs – 2020 GSMA report says

    realme awards fans to Valentines through DaretoLove Campaign

    realme awards fans to Valentines through DaretoLove Campaign

    Opera launch its new Chat App to rival WhatsApp

    Opera launch its new Chat App to rival WhatsApp

    IoT predictions for 2021: Smarter tech will make better business

    IoT predictions for 2021: Smarter tech will make better business

    Nokia to launch its low cost smartphones in Kenya

    Nokia to launch its low cost smartphones in Kenya

  • World Business
    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    World Engineering Day to Be Celebrated in Kenya

    World Engineering Day to Be Celebrated in Kenya

    How NASA Technology Can Help Save The World’s Largest Shark

    How NASA Technology Can Help Save The World’s Largest Shark

    After fight with US Authorities Huawei CEO now want talks with Biden

    After fight with US Authorities Huawei CEO now want talks with Biden

    Ford Vehicles to be powered by Android and Google apps in new deal

    Ford Vehicles to be powered by Android and Google apps in new deal

    Columbia Africa banks on primary and preventive healthcare to grow market share

    Columbia Africa banks on primary and preventive healthcare to grow market share

    DHL Express Named Best Employer in The World

    DHL Express Named Best Employer in The World

    Meet the founder of Safari Doctors Umra Omar

    Meet the founder of Safari Doctors Umra Omar

    Kenya to receive Ksh 1 billion from Google for economic recovery

    Kenya to receive Ksh 1 billion from Google for economic recovery

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    AAR Insurance embrace paperless model with new mobile app

    AAR Insurance embrace paperless model with new mobile app

    Bill in parliament seeks to have CBK regulate Mobile lenders

    Minet feted Insurance Broker of the Year

    Minet feted Insurance Broker of the Year

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

    Hennessy becomes NBA’s first global spirit partner

    Hennessy becomes NBA’s first global spirit partner

    KenGen to Pay Ksh1.65 Billion in Dividends

    KenGens’ half year profits hit Ksh6.8 billion

    Suzuki unveils latest entrant into the Kenyan market

    Suzuki unveils latest entrant into the Kenyan market

    • Agribusiness
    • Banking

      Bill in parliament seeks to have CBK regulate Mobile lenders

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      DTB Bank set to shut down 6 branches

      DTB Bank set to shut down 6 branches

      Secure your future by saving with Metropolitan National Sacco

      Housing Finance launches new money transfer service

      Housing Finance launches new money transfer service

      Businesses to benefit from Ksh1.6 Billion in Aid from DTB

      Businesses to benefit from Ksh1.6 Billion in Aid from DTB

      Leak: 53 Kenyan banks, individuals Named in FinCEN Files For Illegal Sh6 Trillion Transactions

      Impending layoffs at Absa Bank Kenya Plc

      Family Bank opens its 92nd branch

      Family Bank opens its 92nd branch

      Kenyan shilling dips to a 2-year low against the US dollar

      Formation of Sacco Fraud Investigation Unit timely

    • Insurance
      AAR Insurance embrace paperless model with new mobile app

      AAR Insurance embrace paperless model with new mobile app

      Minet feted Insurance Broker of the Year

      Minet feted Insurance Broker of the Year

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      ICEA Lion Life appoints a new CEO

      ICEA Lion Life appoints a new CEO

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Octagon feted in 2020 World Pension Summit Innovation Awards

      Octagon feted in 2020 World Pension Summit Innovation Awards

      What do you need to know before purchasing car insurance?

      What do you need to know before purchasing car insurance?

    • Manufacturing
    • Opinion
      IoT predictions for 2021: Smarter tech will make better business

      IoT predictions for 2021: Smarter tech will make better business

      KRA Goes After Rich Individuals, Firms Over Sh250 Billion

      Digital Services Tax a desperate move caused by bad governance

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      Why Digital Services Tax is a retrogressive policy

      Why Digital Services Tax is a retrogressive policy

      How Citizen TV Became The Most Watched in Kenya

      How Citizen TV Became The Most Watched in Kenya

      This is the new Safaricom logo

      Fail or win? Mixed Reactions over Safaricom’s new logo

      After fuliza, Safaricom introduces another way to borrow money

      OPINION: Why Safaricom’s Fuliza is a rip off!

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      Crisis as young Kenyans now embrace Crime as lifestyle

      Crisis as young Kenyans now embrace Crime as lifestyle

Kenyan Business Feed
  • Home
  • News
    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    AAR Insurance embrace paperless model with new mobile app

    AAR Insurance embrace paperless model with new mobile app

    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    Popular Journalist Dies In Gristly Road Accident

    Popular Journalist Dies In Gristly Road Accident

    Minet feted Insurance Broker of the Year

    Minet feted Insurance Broker of the Year

    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    BBI will Create a good Business Environment: Mt Kenya MCAs Chairman

    BBI will Create a good Business Environment: Mt Kenya MCAs Chairman

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Aden Duale pushing to make pornography an expensive affair in Kenya

  • Markets
    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

    Hennessy becomes NBA’s first global spirit partner

    Hennessy becomes NBA’s first global spirit partner

    KenGen to Pay Ksh1.65 Billion in Dividends

    KenGens’ half year profits hit Ksh6.8 billion

    Suzuki unveils latest entrant into the Kenyan market

    Suzuki unveils latest entrant into the Kenyan market

    Kenya Breweries launches academy to train 10,000 bartenders

    Kenya Breweries launches academy to train 10,000 bartenders

    New Directory to Provide Support to women owned Businesses

    New Directory to Provide Support to women owned Businesses

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

  • Real Estate
    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Kenyan Firm awarded Most Innovative Community Developer 

    #OmokaNaAlma: This is how you get awarded Sh50,000 by Cytonn Real Estate

    Developing Countries Set To Lose Sh22 Trillion Due to COVID-19

    Commercial office rents fall 13pc in quarter 3 & 4 of 2020

    New Construction Technology to help NHC deliver affordable homes

    New Construction Technology to help NHC deliver affordable homes

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    NCBA partners with Shelter Afrique to finance properties in 5 counties

    New Ksh350Million Commercial centre to be constructed in Athi River

    New Ksh350Million Commercial centre to be constructed in Athi River

    Greenpark Estate injects Ksh15M to its development

    Greenpark Estate injects Ksh15M to its development

    LG’s OLED Honoured at the Technology and Engineering Awards

    LG’s OLED Honoured at the Technology and Engineering Awards

    Kenya’s position as a Digital Media Hub gaining momentum

    Kenya’s position as a Digital Media Hub gaining momentum

  • Tech
    Konza Technopolis, Israel to host Innovation Challenge

    Konza Technopolis, Israel to host Innovation Challenge

    TikTok releases H2 2020 Global Transparency Report

    TikTok releases H2 2020 Global Transparency Report

    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    2 Kenyans selected to create African Inspired stickers for New Chat App

    2 Kenyans selected to create African Inspired stickers for New Chat App

    Mobile Phones contribute to the realisation of UN SDGs – 2020 GSMA report says

    realme awards fans to Valentines through DaretoLove Campaign

    realme awards fans to Valentines through DaretoLove Campaign

    Opera launch its new Chat App to rival WhatsApp

    Opera launch its new Chat App to rival WhatsApp

    IoT predictions for 2021: Smarter tech will make better business

    IoT predictions for 2021: Smarter tech will make better business

    Nokia to launch its low cost smartphones in Kenya

    Nokia to launch its low cost smartphones in Kenya

  • World Business
    OPPO Announces Global Partnership with Volkswagen

    OPPO Announces Global Partnership with Volkswagen

    World Engineering Day to Be Celebrated in Kenya

    World Engineering Day to Be Celebrated in Kenya

    How NASA Technology Can Help Save The World’s Largest Shark

    How NASA Technology Can Help Save The World’s Largest Shark

    After fight with US Authorities Huawei CEO now want talks with Biden

    After fight with US Authorities Huawei CEO now want talks with Biden

    Ford Vehicles to be powered by Android and Google apps in new deal

    Ford Vehicles to be powered by Android and Google apps in new deal

    Columbia Africa banks on primary and preventive healthcare to grow market share

    Columbia Africa banks on primary and preventive healthcare to grow market share

    DHL Express Named Best Employer in The World

    DHL Express Named Best Employer in The World

    Meet the founder of Safari Doctors Umra Omar

    Meet the founder of Safari Doctors Umra Omar

    Kenya to receive Ksh 1 billion from Google for economic recovery

    Kenya to receive Ksh 1 billion from Google for economic recovery

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    AAR Insurance embrace paperless model with new mobile app

    AAR Insurance embrace paperless model with new mobile app

    Bill in parliament seeks to have CBK regulate Mobile lenders

    Minet feted Insurance Broker of the Year

    Minet feted Insurance Broker of the Year

    Samsung Named Top Global TV Manufacturer

    Samsung Named Top Global TV Manufacturer

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Aden Duale pushing to make pornography an expensive affair in Kenya

    Locally assembled Proton Saga saloon car released to the market  

    Locally assembled Proton Saga saloon car released to the market  

    Hennessy becomes NBA’s first global spirit partner

    Hennessy becomes NBA’s first global spirit partner

    KenGen to Pay Ksh1.65 Billion in Dividends

    KenGens’ half year profits hit Ksh6.8 billion

    Suzuki unveils latest entrant into the Kenyan market

    Suzuki unveils latest entrant into the Kenyan market

    • Agribusiness
    • Banking

      Bill in parliament seeks to have CBK regulate Mobile lenders

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      DTB Bank set to shut down 6 branches

      DTB Bank set to shut down 6 branches

      Secure your future by saving with Metropolitan National Sacco

      Housing Finance launches new money transfer service

      Housing Finance launches new money transfer service

      Businesses to benefit from Ksh1.6 Billion in Aid from DTB

      Businesses to benefit from Ksh1.6 Billion in Aid from DTB

      Leak: 53 Kenyan banks, individuals Named in FinCEN Files For Illegal Sh6 Trillion Transactions

      Impending layoffs at Absa Bank Kenya Plc

      Family Bank opens its 92nd branch

      Family Bank opens its 92nd branch

      Kenyan shilling dips to a 2-year low against the US dollar

      Formation of Sacco Fraud Investigation Unit timely

    • Insurance
      AAR Insurance embrace paperless model with new mobile app

      AAR Insurance embrace paperless model with new mobile app

      Minet feted Insurance Broker of the Year

      Minet feted Insurance Broker of the Year

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      Pension Schemes Maintain Positive Performance in Q4 of 2020

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      ICEA Lion Life appoints a new CEO

      ICEA Lion Life appoints a new CEO

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Exposed: Insurance Company on The Spot for Fruatrating clients

      Octagon feted in 2020 World Pension Summit Innovation Awards

      Octagon feted in 2020 World Pension Summit Innovation Awards

      What do you need to know before purchasing car insurance?

      What do you need to know before purchasing car insurance?

    • Manufacturing
    • Opinion
      IoT predictions for 2021: Smarter tech will make better business

      IoT predictions for 2021: Smarter tech will make better business

      KRA Goes After Rich Individuals, Firms Over Sh250 Billion

      Digital Services Tax a desperate move caused by bad governance

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      Why Digital Services Tax is a retrogressive policy

      Why Digital Services Tax is a retrogressive policy

      How Citizen TV Became The Most Watched in Kenya

      How Citizen TV Became The Most Watched in Kenya

      This is the new Safaricom logo

      Fail or win? Mixed Reactions over Safaricom’s new logo

      After fuliza, Safaricom introduces another way to borrow money

      OPINION: Why Safaricom’s Fuliza is a rip off!

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      OPINION: Conserve Nature Even as you Work to Achieve SDGs

      Crisis as young Kenyans now embrace Crime as lifestyle

      Crisis as young Kenyans now embrace Crime as lifestyle

No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home KBF

Bank merger deals reignite battle for control of trillions

by Kenyan Business Feed
May 8, 2019
in KBF
0
152
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare On Whatsapp
Loading...

[ad_1]

PATRICK ALUSHULA

By PATRICK ALUSHULA
More by this Author

One has a rich history. The other, a humble one. But that is for those who value once-upon-a-time tales about KCB Holdings Group and Equity Group Holdings.

As at the end of December 2018, the financial performance of Kenya’s two largest financial institutions silently continued to write a story of might, ambition and business rivalry.

With mergers and acquisitions the in thing now, the next chapter of rivalry has just started. But unlike before, it is no longer a two-horse race.

NIC Bank and Commercial Bank of Africa want to make a statement through their merger deal and so is Co-operative Bank Group.

Mauritian lender SBM Bank came in, saw and sealed two deals, first acquiring Fidelity Bank then carving out assets from collapsed Chase Bank where it booked a Sh3.82 billion bargain gain.

KCB and Equity are not taking it lying down. KCB chief executive Joshua Oigara says he wants to use acquisitions to accelerate the group’s growth. It was founded outside the country, then came to Kenya and dominated. It now wants to deepen operations outside the country.

In 1896, KCB, started its operations in Zanzibar as a branch of the National Bank of India. In 1904, the lender extended its operations to Nairobi. But the rest is not just history but rather the making of a story of East Africa’s oldest and largest commercial bank.

By this time, Equity was nowhere in the picture. The thought of starting a purely indigenous bank was almost an unimaginable tale. Only in October 1984 did Equity Bank, then Equity Building Society, enter the scene.

The society’s logo, a modest house with a brown roof, may not have made sense then. But it’s from this humble beginning that small but steady gains were made to yield the present-day lender with the largest number of customers.

By 1984, the government of Kenya had already acquired majority shareholding in National Bank of India and changed the name to Kenya Commercial Bank (KCB).

Then in 1988, the government sold 20 percent of its shares at the Nairobi Securities Exchange (NSE) through an IPO that saw 120,000 new shareholders acquire the bank. That was a big step. But for Equity, its muscles had proved too weak, to the extent of being declared technically insolvent in 1993 due to an assets-liabilities mismatch.

One man stepped forward — James Mwangi. He took over as finance, operations and strategy director at Equity in 1994.

While, in 1997, KCB, known for its roaring lion emblem, resolved to spread its operations to various markets in the region, starting with Tanzania, Equity’s story was still more of folding up than remaining in the market.

Equity had to wait until 2008 — a whole 11 years — to try its luck beyond the borders. That was through acquiring Uganda Microfinance Ltd.

But fast-forward to May 2019, and Equity and KCB now are in a neck-and-neck competition to deepen control not only of the Kenyan market but the region too.

For the year ended December 2018, KCB grew its profits by 22 percent to Sh24 billion while Equity’s grew by 4.8 percent to Sh19.82 billion.

With Equity’s slowed pace of growth last year, KCB opened a 17.4 percent profit gap with its competitor. This was the largest gap in 12 years. Only in 2007 was the difference large at 30.2 percent in favour of KCB.

Between 2007 and 2018, Equity Group beat KCB on profitability five times — in 2008, 2009, 2011, 2012 and 2014.

For Mr Mwangi, Equity has been like his second home, having joined the organisation in 2004 and working with the founder Peter Munga to get it out of the ashes of insolvency.

Five years later, in 2011, Mr Oigara joined KCB as group chief finance officer. But in January 2013, he was appointed the group chief executive, bringing in impact at the end of the year by cutting short the back-to-back two-year reign in which Mr Mwangi had posted more profits than KCB.

However, this was not to last. Mr Mwangi was back again, posting a Sh17.2 billion profit against Oigara’s Sh16.8 billion in 2014. Since then, it has been four years of Mr Oigara in the lead.

But now the two want to deepen their competition through acquisitions. Currently, KCB has 258 physical branches, 946 ATMs and 16,642 agents. These are spread out in Kenya, Uganda, Rwanda, South Sudan, Burundi and Tanzania. It also has a representative office in Ethiopia.

On the other hand, Equity rides on 290 branches, 694 ATMs and 42,635 agent outlets, with a presence in Kenya, Uganda, South Sudan, Tanzania, Rwanda and DRC.

Loading...

This means that despite KCB having embarked on regional expansion in 1997, Equity caught up with its rival and has also stamped its feet in the region since entering Uganda in 2008.

KCB is completing a deal to acquire part of Imperial Bank. In a quick follow-up, it has announced a deal to acquire a 100 percent stake in National Bank of Kenya.

“The proposed transaction will further consolidate the banking sector in Kenya and will create stronger institutions, enabling KCB to play a bigger role in the financial inclusion agenda,” said Mr Oigara about the deal. Hardly two weeks later, Mr Mwangi has announced a Sh10.6 billion plan to purchase banking businesses in Rwanda, Tanzania, Zambia and Mozambique, adding two new countries to its portfolio.

Eyes will now be on how the deals of these two top lenders as well as that of the outfit that will be born out of the NIC-CBA merger will shape regional markets.

Last year, Equity Group’s return on average equity was at 21.1 percent compared with KCB’s 21.9 percent. This means that while Equity earned its owners about 21 cents for every shilling they invested in 2017, KCB earned its shareholders 22 cents.

On the cost-to-income ratio (CTI), Mr Oigara also beats Mr Mwangi. While Equity’s CTI was 52.2 percent, KCB’s was at 48.3 percent. In other words, KCB was more efficient, using fewer resources to generate every shilling of revenue.

The two CEOs rarely share platforms. The KCB boss hardly makes any remarks about his competitor. However, sometimes, Mr Mwangi does.

“The market sees the value in us. Beating the largest bank in the country shows the faith the market is allocating to us,” Mr Mwangi was quoted saying at an annual general meeting.

At end of last year, KCB’s assets were valued at Sh714.3 billion, stamping its foot as the market leader in terms of assets. But Equity follows with Sh527.8 billion, 19.7 percent lower.

Back in 2007, the gap was too wide. While KCB had assets valued at Sh191.2 billion, Equity trailed with just Sh53.13 billion. The latest figures show that Equity has used the last decade to narrow the gap.

The fight to control deposits and command huge customer numbers has also intensified. In 2007, Equity had deposits of Sh31.5 billion and only 1.84 million customers to its name.

Equity now boasts Sh422.8 billion in deposits against KCB’s Sh537.5 billion. This puts the two lenders in pole position to control the lending market in the region.

But in the changing environment, both banks have been swift in investing in digital platforms. Ninety-six percent of Equity’s transactions now happen outside branches, compared with 88 percent of KCB’s.

The race to control the market continues to hot up. Mr Oigara remains keen on developments in Ethiopia and is ready to make a full entry should opportunity come knocking. But so is his competitor.

Both have had a rocky outing in South Sudan owing to political instability and hyperinflation. Sometimes they have been forced to shut down temporarily or close some branches and scale down staff. But they still hold on.

Mr Mwangi is keen on growing the returns from the subsidiaries and has included that in the eight-point model of surviving the changing banking landscape.

Last year, both banks were ranked among the top 1,000 in the world by The Banker magazine. Credit rating firm Moody’s Investors Service ranks both banks in the B2 category.

As the year progresses, eyes remain on both Mr Oigara and Mr Mwangi. While Mr Oigara earns about Sh4.75 million as basic monthly salary, his counterpart takes home Sh4.73 million.

They both wake up to author a silent story of business rivalry dotted with respect and ambition to control the region’s financial services landscape.



[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

Comments

comments

Loading...
Loading...

Popular Articles

    • Trending
    • Comments
    • Latest
    RMS starts issuing redundancy notices as some staff sent home

    RMS starts issuing redundancy notices as some staff sent home

    June 23, 2020
    State completes appointment of officers to the Nairobi Metropolitan Service

    Sh42million a day with little to show for it

    June 29, 2020
    Best places to get a short term loan

    Best places to get a short term loan

    February 16, 2021
    Sonko rescue team voted most resilient group in Eastern Africa

    Sonko rescue team voted most resilient group in Eastern Africa

    December 28, 2019
    tvN – Korea’s top entertainment brand debuts on DSTV

    tvN – Korea’s top entertainment brand debuts on DSTV

    March 2, 2021
    AAR Insurance embrace paperless model with new mobile app

    AAR Insurance embrace paperless model with new mobile app

    March 2, 2021
    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    Parliament now pushing for all Kenyans to pay Ksh6000 NHIF fee

    March 2, 2021
    Popular Journalist Dies In Gristly Road Accident

    Popular Journalist Dies In Gristly Road Accident

    March 1, 2021


    © 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

    No Result
    View All Result
    • Home
    • News
    • Markets
    • Real Estate
    • Tech
    • World Business
    • KBF
      • Agribusiness
      • Banking
      • Insurance
      • Manufacturing
      • Opinion