Following closely is Bank of India at second place and Equity Bank at third place.
The ranking was based on key performance indicators that include net yield, efficiency, growth in customer deposits, core capital to customer deposits, liquid assets to customer deposits and return on average shareholders’ equity among others.
According to the survey, out of five tier one banks (banks with customer deposit base of over Sh100 billion) Equity bank emerged the best followed by standard Charted Bank and Barclays Bank respectively while CfC Stanbic Bank lead Diamond Trust Bank and I&M bank respectively in the tier two banks (banks with customer deposit base of between Sh50 billion and Sh100 billion).
In tier three (banks with a customer deposit base of between Sh15 billion and Sh50 billion), Citibank emerged the leader followed by Bank of India and Bank of Baroda respectively.
Habib bank and Habib A.G Zurich tied as the leading banks in the tire four category (banks with customer deposit base below Sh15 billion) followed by Victoria Bank and K-Rep bank respectively.
The survey revealed a new entrant in the tier two banks – Chase Bank while GT Bank earned its place among the tier three banks.
Releasing the survey RSM Ashvir Group Managing Director Ashif Kassam says the banking sector registered improved growth in total assets driven by growth in customer deposits injection capital and retention of profits.
“The banking sector continues to be liquid with the ratio of liquid and near liquid assets to customer deposits being 39.3 percent, this ratio decreased from 43 percent in 2012 as banks increased their appetite for lending post the 2013 march general elections,” he explained.
Total customer deposit base increased by 13.3 percent from Sh1, 708 billion in 2012 to Sh1, 936 billion in 2013 while overall total assets grew by 16 percent from Sh2, 330 billion in 2012 to Sh2, 703 billion in 2013.
Net advances to customers increased from Sh107.9 billion to Sh124.9 billion in2013 representing a 15.8 percent increase.
Kassam said that the government’s appetite for credit is competing with the private sector and hindering the lowering of interest rates.
“63.1 percent which amounts to Sh551.2 billion is invested in governments securities which is significantly high and I think this is one of the areas that if we need to see interest rates coming down the government needs to stop competing with the private sector this ratio should go down by at least 30 to 40 percent maximum to release this money which will overall reduce interest rates,” he said.
Fees and commissions grew by 32percent in 2013 compared to negative movement of 6.8 percent in 2012 as employment costs grew from Sh61.2 percent to Sh71 billion.
Imperial bank (a tier three bank) was the market leader in return on average shareholders’ equity at 33.2 percent while Jamii Bora Bank was the market leader in customer deposits growth that grew by Sh182 percent.
K-Rep bank was the leading bank in the net yield category while Equity Bank led the pack in the return on average total assets category.