NPLs fall to 4.3% of total loans at end June 2018: CBE

2018, consistent from March 2018, but below the ROAA of 2% at the end of December,September,June,and March 2017.The ROAA scored 1.4% at the top 10 and top 5 banks respectively.

It added further that the return on the average equity (ROAE) of banks also stabilised at 21.5% at the end of June 2018, also constant from March 2018, but falling from 30.9% in December, September, June, and March 2017.

The ROAE scored 20.5% in the top 10 banks and 20.3% at the top five.

The net margin of return reached 3.9% in June, unvarying from March and down from 4.6% in December, September, July, and March 2017. It reached 3.6% in the top 10 banks, and 3.5% in the top five.

Regarding the banks’ capital adequacy index, the CBE explained that the capital to risk (weighted) assets ratio (CRAR) in banks declined to 15.6% at the end of June 2018, compared to 15.7% in March. The ratio scored 15.3% in the top 10 banks, and 15.5% in the top five.

The tier one capital increased to 12.6% in June from 12.5% in March, reaching 12% in the top 10 banks, and 12.1% in the top five.

The continuing capital to risk weighted assets ratio reached 9.4% in June, against 9.3% in March, reaching 8.3% in the top 10 banks, and 5.6% in the top five banks, according to the CBE.

The rate of leverage in banks reached 6.3% in June, against 6.1% in March 2018.This ratio reached 5.8% in the top 10 banks, and 5.6% in the top five banks.

The percentage is recommended starting from end of September 2015 till 2017, and is obligatory starting from 2018 with a lower margin stated by 3%, as per the CBE’s report.