Four Kenyan banks have been ranked among the best-performing banks globally in the latest Forbes ranking.
The institutions are Co-operative Bank of Kenya, Equity Group Holdings, KCB Group and Stanbic Holdings, which were assessed based on their financial performance, growth, resilience and ability to manage risks.
Co-operative Bank of Kenya ranked 120th globally in Forbes' Tier Six category for small banks, placing it among the lenders recognised for their overall financial strength.
Equity Group Holdings performed better, ranking 71st in the Tier Five category for lower mid-sized banks, while KCB Group came in at position 79 among Tier Five mid-sized banks.
Stanbic Holdings ranked 138th globally in the Tier Six category for small banks.
The Forbes assessment goes beyond the size of a bank or its profits, examining how effectively lenders generate returns, sustain growth, maintain financial strength and manage the risks associated with their operations.
Profitability accounted for the largest share of the assessment at 30 per cent. The measure considers indicators including returns on assets, the cost of running the bank relative to its income and the strength of its net interest margins.
Growth and earnings quality contributed a further 20 per cent. Forbes considered factors such as the consistency and expansion of earnings, as well as the growth of customer deposits over a three-year period.
Capital and funding resilience made up 25 per cent of the overall assessment. This measure looked at the strength of banks' capital positions and their ability to maintain adequate funding, including through indicators such as the loan-to-deposit ratio.
The final 25 per cent focused on asset quality and efficiency, assessing areas including credit quality, risk management and the resilience of banks' balance sheets.
The methodology means the rankings assess the ability of banks to maintain strong financial performance over time rather than relying solely on their profitability.
The recognition of the four Kenyan lenders places them among a global group of banks assessed on their ability to grow sustainably while maintaining adequate capital, managing risks and remaining financially resilient.
