Bank-owned stockbrokers and investment banks, supported by alternative revenue streams, have outperformed standalone rivals in terms of profits. SBG Securities, owned by Stanbic Bank Kenya, NCBA Capital, Equity Investment Bank, and KCB Investment Bank lead the profits table. This shift is attributed to the decline in traditional income from trading commissions, prompting firms to explore additional revenue streams.
Analysis: The financial results highlight the strategic advantage of bank-owned brokers in diversifying revenue streams beyond traditional trading commissions. These entities leverage their parent companies to tap into a wider range of services, such as fund management, advisory, and wealth management. This approach not only cushions against market fluctuations but also positions them for sustained profitability. Standalone brokers may face challenges in a market where trading commissions are shrinking, necessitating innovative approaches to revenue generation.
