Kenyan Listed Banking Sector Quarterly Earnings and Operating Metrics
Cytonn
12.0%
9.5%
10.0%
9.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Interest Rates and Monetary Policy
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
CBR
Cytonn Report: Central Bank Rate (CBR)
9.0%
7.0%
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
5-Year Average
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
8.8%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
May-22
Jul-22
Sep-22
Nov-22
•
The Monetary Policy Committee met in November and decided to hike the Central Bank Rate by 75.0 bps to 8.75%, from the previous
8.25%, with an aim to anchor inflationary pressures. Notably, this is the highest the CBR has been since November 2019,
• The Committee noted the sustained inflationary pressures, the elevated global risks such as interest rate hikes in advanced economies
and their potential impact on the domestic economy, laid grounds for a further tightening of the monetary policy in order to anchor
inflation expectations. Key to note, the increase in the CBR led to an increase in the commercial bank's lending rates to 12.4% in
September 2022, from 12.1% seen in January 2022
12
0.0%
Jan-17
May-17
Sep-17
Jan-18
May-18
Sep-18
Deposits
Jan-19
May-19
Sep-19
Lending
Jan-20
Cytonn Report: Weighted Average Interest Rates
May-20
Sep-20
Interest Spread
Jan-21
May-21
Sep-21
Jan-22
6.8%
12.4%
May-22
5.6%
Sep-22View entire presentation