@merchant
KCB has began to manage its 330 billion worth of assets more efficiently and when this is complete equity bank will be no match for it with its paltry 200 billion worth of assets..

Does that sound more thought out to you now??

@guru you don't only buy KCB's assets but it's liabilities too...look at the capital ratio's of this two banks and you will see that Equity Bank is the most capitalised bank despite KCB doing numerous rights issues...the ability of a bank to lend depends on the amount of capital it has...based on the capital ratio's of this two banks I don't see KCB overtaking Equity Bank in many years to come unless they cut dividends and do another rights issue.

KCB Group has the capacity to double its FY2010 balance sheet coupled with its drive toward efficiency and there lies a no-brainer worthy investment.

@the deal I am not talking about increasing lending to boost profits. im talking about increasing efficiency to boost profits..

When KCB brings its Cost to income ratio from 66% down to equity's level of 50% as it intends by 2013 profits will shoot to 20+billion without increasing any lending..

How will equity compete with that¿¿

That can't happen unless you tell me, one of this days I will be served by robots at KCB , the only bank with a cost to income ratio of around 50% is DTB look at how they operate, watch out for Equity Banks agency banking theyre everywhere in Nairobi.