A good read on cost to income ratio. Those who have so much confidence in KCB need to be cautious in the meantime.
Barclays Bank to carry out staff restructuringBarclays Bank plans to lay off 200 managers as part of its ongoing restructuring with an aim to
reduce its cost to income ratio (currently at 61.0%). The employment redundancies came about
after the adaptation of a new IT platform (Flexcube). The bank plans to merge some departments to improve efficiency and cut back on its rising wage bill which is amongst the highest in the industry.
On the other hand, KCB Bank has employed the services of the global consultancy firm McKinsey and Co to help restructure its business as it seeks to cut costs and boost efficiency.
The bank’s cost to income ratio at
70.0%, is one of the highest in the
world and industry compared to the sector average of 55.0%. The bank aims at bringing this figure down to 50.0% in the next three to five years.
Copied from the current Kestrel financial commentary report. Italized words are mine.
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own