... Summary
1.1 KENYAN BANKING SECTOR PERFORMANCE For the quarter ended 30th June 2013, the Kenyan Banking Sector demonstrated an improved growth compared to the first quarter ended 31st March 2013. Some of the sector’s performance indicators for the quarter were as follows:
• The aggregate balance sheet increased by 3.7 percent from Kshs 2.42 trillion in March 2013 to Kshs 2.51 trillion in June 2013.
• Gross loans and advances expanded by 3.6 percent from Kshs 1.40 trillion in March 2013 to Kshs 1.45 trillion in June 2013.
• Banking sector deposits grew by 4.5 percent from to Kshs 1.78 trillion in March 2013 to Kshs 1.86 trillion in June 2013.
• Total shareholders’ funds increased by 5 percent from Kshs 375.6 billion in March 2013 to Kshs 394.4 billion in June 2013.
• Unaudited pre-tax profits for the quarter was Kshs 61.5 billion compared to Kshs 53.2 billion for the quarter ending 30th June 2012, a 15.6% increase.
1.2 CREDIT OFFICER SURVEY Highlights of findings obtained in the quarter ended June 2013:-
• The demand for credit generally increased in all economic sectors. Reduction of political risk had the most significant impact on increasing demand for credit; followed by reduction in Central Bank Rate and available investment opportunities.
• No institution tightened its credit standards as compared to the first quarter of 2013. However there was a slight easing of credit standards in trade, tourism, restaurant & hotels and personal/household sectors.
• For the quarter ending 30th September 2013, institutions expect the non-performing loans to generally decrease in Agriculture, Building & Construction and Tourism, Restaurant & Hotel sectors
• 76% and 56% of the respondents reported their intention to increase their credit recovery efforts in Personal/Household and Trade sectors while most of the respondents reported their intention to maintain their credit recovery efforts in most of the other economic sectors.