Victoria Commercial Bank Limited

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Victoria Commercial Bank Limited (2021)
  • Victoria Commercial Bank Limited
  • Year : Oct 2021
3 Tokens
USD 300.00
Summary

The bank is currently positioned as the top tier 3 bank in Kenya with its market share recorded at 0.7% as of 30 June 2021 and in addition it outperforms peers on asset quality, efficiency, and return on assets. Furthermore, we view the bank to target a niche market segment that has proved to be defendable, and its core strength lies in its relationship banking business model that has proved to be stable over the years. Track record of revenue stability is good, benefiting from a nimble organisational structure and good capital management.

Additional Information

The stable outlook reflects our expectations of economic recovery as a result of easing operating environment pressures and moderation in asset quality metrics in the next 12-18 months. We also expect the competitive position, funding base, and liquidity of the bank to remain stable. A downgrade could be caused by sustained higher NPLs and credit losses at 12% and 4%, respectively, and lower than 15% GCR capital ratio. The upside to the ratings could be supported by increased business diversification, improvement in asset quality, and stronger capitalisation.

Related Publication

Victoria Commercial Bank Limited (2016-08)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Kenya Statistical Bank Bulletin

The comparative statistics contained in this bulletin for the period 30 June 2013 to 31 December 2017 are based on shared industry information pert...

GCR Risk Score Snapshot as of 10th Feb 2021

The GCR Ratings Framework is anchored upon the GCR Risk Score. This numerical scoring system, which forms a single analytical approach across multi...

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