By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges
    Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges
    May 15, 2025
    Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
    Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
    May 15, 2025
    A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
    A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
    May 15, 2025
    Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
    Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
    May 15, 2025
    ‘Don’t know what to do’: Johor Bahru’s heritage businesses near RTS station grapple with rising rents, inflation
    ‘Don’t know what to do’: Johor Bahru’s heritage businesses near RTS station grapple with rising rents, inflation
    May 15, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
    BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
    May 15, 2025
    Is XRP price rally over for now?
    Is XRP price rally over for now?
    May 15, 2025
    Ukraine strategic Bitcoin reserve bill reportedly in final stages
    Ukraine strategic Bitcoin reserve bill reportedly in final stages
    May 15, 2025
    Senate removes Trump provisions in push to pass stablecoin bill
    Senate removes Trump provisions in push to pass stablecoin bill
    May 15, 2025
    MOODENG price drops 14% to alt=
    MOODENG price drops 14% to $0.2613 after 703% weekly rally
    May 15, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: NCBA overtakes KCB, Equity in high value accounts
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > NCBA overtakes KCB, Equity in high value accounts
NCBA overtakes KCB, Equity in high value accounts
Business

NCBA overtakes KCB, Equity in high value accounts

Published July 24, 2024
Share
5 Min Read
SHARE

NCBA Bank Kenya has beaten its top rivals, including KCB Bank Kenya and Equity Bank Kenya, to hold the largest number of high-value accounts with deposits of more than Sh100,000 at the end of last December.

The latest bank supervision report shows that NCBA’s high-net-worth accounts more than doubled to 416,481 in the review period, ranking it first in the number of wealthy clients.

The bank had 146,396 such accounts a year earlier. Equity, which previously was in the pole position with 419,736 accounts, registered a substantial shrinkage in high-value clients to leave it with 124,098 accounts in the review period when it ranked second.

KCB’s accounts also fell to 113,368 from 330,484, a move that saw it drop from second to third place. High-value accounts at Co-operative Bank of Kenya similarly plummeted to 86,033 from 280,128, ranking the lender fourth from the previous third position.

Most institutions recorded substantial losses of high-value accounts, with NCBA bucking the trend to post the largest gains. Local banks lost a total of 736,845 such accounts to 1,110,232, marking a 10-year low and one of the biggest contraction in a single year.

The decline in the number of high-value accounts signals a mix of a shift to alternative assets such as Treasury bills as well as economic headwinds that affected a section of businesses and households.

Last year was characterised by high inflation rates and higher taxation that eroded households’ purchasing power and hurt corporate earnings in various sectors, including manufacturing and services.

A large base of high-net-worth clients helps a bank fund its lending business, besides opening an opportunity to offer additional services, including wealth management.

Big accounts also generate substantial revenue, including transaction and ledger fees. While small accounts are less lucrative per customer, their number exploded last year, lifting the value of total deposits to a new record of Sh5.9 trillion from the previous Sh5 trillion, a move that benefited the large retail banks the most.

The low-value accounts surged to 93.5 million from 62.1 million, with the increase attributed to mobile-linked accounts featuring partnerships between banks and Safaricom.

KCB benefited the most, growing its pool of small accounts to 37.6 million from 11 million in a move that made it the largest retail bank once again. This saw it overtake NCBA, ranked second, after increasing its small accounts to 30.3 million from 29.3 million.

Low-value accounts are less lucrative per customer, but large retail banks can aggregate the fees earned to collect billions of shillings in revenue per year.

The big banks—which pay little to no interest on the small accounts— can use funds held in them to fund their short-term lending business and earn lucrative interest income.

More banks have also introduced minimum annual fees on retail accounts in the past few years, helping them grow revenue and cover the cost of maintaining those with little activity and zero to negligible balances.

The growth in deposits by Sh900 billion last year amid a fall in high-value accounts signals growing income and wealth inequality.

Even the explosion of small accounts is largely attributed to existing customers opening additional accounts at their current bank or different institutions to access new services.

A survey by the Kenya Bankers Association found that more than half of bank customers maintained more than one bank account in 2023.

Clients with two bank accounts stood at 53 percent, with the proportion of holders of two to three and four to five bank accounts representing 8.2 percent and 1.2 percent, respectively, according to the survey.

The bulk of the deposits are held by institutions including government entities and private companies. High-net-worth individuals also hold a significant part of bank deposits.

The cash-rich depositors earn most of the interest paid by banks for keeping their money for a fixed period ranging from a month to a year.

Most individuals hold negligible balances in their bank accounts, routinely spending most of their income.

#NCBA #overtakes #KCB #Equity #high #accounts

TAGGED:accountsequityhighKCBNCBAncba bankNCBA Bank Kenyaovertakes
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article We Have Got to Stop Giving These Movie Universes Ridiculous Acronyms We Have Got to Stop Giving These Movie Universes Ridiculous Acronyms
Next Article Sharks test positive to high levels of cocaine off the coast of Brazil Sharks test positive to high levels of cocaine off the coast of Brazil
- Advertisement -

Latest Post

BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX
Cryptocurrency
Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges
Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges
World News
Is XRP price rally over for now?
Is XRP price rally over for now?
Cryptocurrency
Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
World News
Ukraine strategic Bitcoin reserve bill reportedly in final stages
Ukraine strategic Bitcoin reserve bill reportedly in final stages
Cryptocurrency
A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
World News
- Advertisement -

You Might Also Like

Apollo swoops for parcel delivery giant Evri in £2.7bn deal
Business

Apollo swoops for parcel delivery giant Evri in £2.7bn deal

July 26, 2024
Avalanche forecasters try to curb deaths as skiers and snowmobilers flock to backcountry areas
Business

Avalanche forecasters try to curb deaths as skiers and snowmobilers flock to backcountry areas

February 3, 2024
Brussels threatens to hit Hungary’s economy if Viktor Orbán vetoes Ukraine aid
Business

Brussels threatens to hit Hungary’s economy if Viktor Orbán vetoes Ukraine aid

January 29, 2024
Add Luxury Touch to Your Food Packaging by using Custom Chinese Takeout Boxes – Insights Success
Business

Add Luxury Touch to Your Food Packaging by using Custom Chinese Takeout Boxes – Insights Success

August 2, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?