Victoria Commercial Bank has nil non-performing loans and advances

Victoria Commercial Bank (VCB) has no non-performing loans and advances indicating a financial institution that likely vets its creditors before advancing them money. It has had this trend in the past six years.

VCB focuses on serving large corporations and high-net-worth clients. The bank also offers personal banking services to the employees of its corporate clients.

VCB loans

It also has no bank balances due to the Central Bank of Kenya (CBK) in all its published accounts in the last two years.

Founded in 1987, Victoria Commercial Bank Ltd offers commercial and personal banking services. The bank provides personal banking services, including current and saving accounts, extra accounts, funds transfers and currency exchange.

The bank’s core capital is almost thrice the statutory core capital. It has sh2.9 billion core capital as at 31st September while the regulatory core capital is sh1 billion.

Victoria Commercial Bank has sustained a liquidity ratio above the regulatory requirements of 20 percent. It currently has 29.6 percent while in the last two years, the ratios have been above 30 per cent.

The bank seems to make very calculated investment securities as it has not investment in any securities in the last two years.

According to its statements, its liabilities are sound. For instance, it has no dividends payable, deferred tax liability, retirement benefit liability and bank balances due to banking institutions in the group. It has equally maintained this over the last two years.

The upper-hill headquartered bank has total insider loans, advances at sh155,383 million. Out of this, sh52,132 million are loans and advances to employees while directors, shareholders and associates take up the remaining sh103, 251 million.

Their customer deposits have been progressively increasing over the years. As at 30th September 2015, the total customer deposits were sh826, 240 million while deposits from other banking institutions were sh8,396 million.

Its rating outlook for in the short-term and long terms are regarded as stable. It has a short term rating at A2,  meaning that it has good liquidity and can make timely payments with minimal risk.. Its long term rating is BBB indicating that  that it offers a prudent investment, but also faces considerable variability in risk during economic cycles. The ratings were done by South Africa’s Global Credit Rating Company.

While it was established in 1987 as Victoria Finance Company, a Non-Bank Finance Institution (NBFI), in 1996, following the issuance of a banking license by CBK, the company re-branded to Victoria Commercial Bank. It is a Tier 3 private bank.

VCB’s top owner is listed as Kanji Pattni (also chairman of the Board) with a 13.4 per cent stake, followed by Kingsway Investments Limited (9.3 per cent), Orchid Holdings (8.7 per cent), and Rochester Holdings (7.4 per cent).

It is classified as a small lender in Kenya, controlling 0.5 per cent of the market.


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