An analysis of the financial performance of listed banks done by the Cytonn Financial Services Research Team for the first quarter of 2020, indicates that the banking sector has shown resilient performance despite the tough operating environment which was largely attributable to persistent revenue diversification.
The Cytonn report carried out a comprehensive ranking of 10 listed banks on the basis of franchise,value and also on future growth opportunity. I&M had the highest Franchise value score at 51 with a weighted score of 21.6.
Cooperative bank followed with a Franchise value score of 49, an intrinsic value score of 2, and a weighted score of 22, KCB Group was third with a franchise value score of 56, and an intrinsic value score of 3.
The report also highlights that banks reported a decline in the quality of their loan books, as a result of compliance with the new accounting rules known as IFRS 9, together with the cautious stance that banks have taken to mitigate the impact of the Covid-19 pandemic.