Browsing: Cytonn Investment

The Kenyan economy is projected to grow by 5.8 per cent on average in 2019, according to GDP projections from 16 research houses, global agencies, and government organizations that were tracked during the half-year period to June.

This will be driven by among others, growth in the agriculture sector, implementation of the Big 4 Agenda projects by the government, and recovery in the business environment evidenced by the Stanbic Bank Monthly Purchasing Managers’ Index (PMI), which rose to 51.3 in May 2019 from 49.3 recorded in April, an indication of improving business conditions.

Among firms that have projected the growth includes Cytonn Investment which had foreseen a 5.8 per cent growth in H1’2019 and a similar growth in the second half of the year.

“Cytonn maintains a positive outlook for the macroeconomic environment in Kenya in their H1’2019 review, with expectations of strong economic performance with a GDP growth of …

Kenyan listed banks had an improved performance on aggregate in the first quarter of 2019 as they recorded improved profitability in a relatively tough operating environment, a survey by Cytonn Investment has revealed.

During the quarter, return on equity rose to 19.2 per cent from 18.4 per cent in Q1 2018, with equity group having the highest at 22.8 per cent, Cytonn’s Q1’2019 Banking Sector Review indicates.

The report, themed ‘Consolidation and Diversification to drive Growth’, analyzed the Q1’2019 results of the listed banks.

“We note that the increased emphasis on operating efficiency by banks seems to be bearing fruit, with the listed banking sector’s operating efficiency improving year-on-year, which was further supported by a recovery in interest revenue, largely supported by the asset re-allocation to government securities, and increased lending to specific segments”, said Caleb Mugendi, investment Associate at Cytonn Investments.

“The continued focus on alternative banking …

Majority of the deals are tier 1 banks going for struggling tier 2 and 3 lenders

Kenya’s banking sector is on an evolution path evidenced by the high number of mergers and acquisitions being witnessed; a trend the government is hoping will realign and strengthen the sector.

The most recent is last week’s offer by the country’s largest bank by asset-KCB, which has made a move to acquire a hundred per cent (100%) of the ordinary shares in National Bank of Kenya (NBK).

This is the sixth deal in the last nine months (between August 2018 and April this year) with a total 13 banking merger and acquisitions in the last six years.

Majority of the deals are tier 1 lenders going for smaller struggling banks in tier 2 and tier 3, in the market which has a total of 42 commercial banks and one mortgage finance institution-Housing Finance.

KCB, …