Kenya Central Bank Says Lenders Face New Era of Lean Profits
- Central bank holding talks with banks on new business models
- Banks ROE slump to within range in other economies, Njoroge
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Kenyan lenders must adjust their business models to adapt to a new era of lower profits as interest-rate caps curb investor returns, Central Bank of Kenya Governor Patrick Njoroge said.
Return on equity in the Kenyan banking industry declined to 13.6 percent in March from 18.2 percent in June, Njoroge told reporters Tuesday in the capital, Nairobi. For the country’s biggest lenders, the drop was more severe, slumping to 23 percent from almost 35 percent. That compares with an average of 17.4 percent for South Africa’s four biggest banks and 22.3 percent for Nigeria’s top lenders, according to data compiled by Bloomberg.