Coop Bank

FeaturedNews

Bankers caught in the domino effect of the falling shilling

Kenyan banks find themselves in a tough spot, akin to a deer ensnared in the piercing glow of headlights. They are burdened by substantial amounts of government debt and defaulted government supplier debt. To compound matters, their ventures into foreign exchange have become a costly gamble, with a staggering 23.8 percent surge in expenses triggered by the falling Kenyan shilling.. In psychology, it is recognized that, like animals, humans tend to freeze in response to acute stress, an instinct aimed at enhancing risk assessment and decision-making abilities. However, this instinct can lead to paralysis, leaving individuals unsure of how to proceed. Kenyan lenders are facing…

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In Brief

Co-op feted for listening to small businesses

Co-operative Bank Group has emerged top among African peers in serving small business and has been awarded by the SME Finance Forum the SME Financier Of The Year In Africa – Gold Award at the Global SME Finance Awards 2023. Co-op Managing Director Dr Gideon Muriuki has said they won the award at the Global SME Finance Forum currently underway at the Grand Hyatt Hotel in Mumbai, India, on their responsive service to small businesses. “In collaboration with IFC and other partners, we have taken time to listen, study and build a most competitive value proposition for SMEs intended to support them realise the goals

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MarketsNews

Lending drives Coop’s profit up 5.8% to Sh12.1 billion

The Cooperative Bank posted Kes12.1 billion in after tax profits for the first half of this year up 5.8 percent from Kes11.4 billion on increased loan and keeping costs down. The lender made Kes21 billion up from Kes18.5 billion after it increased loans 10.6 percent to Kes365.3 billion in the half. Kenya’s private business has endured years of low credit owing to a high interest rate regime, but businesses were recovering, recording double digit loan growth since last year. Banks sought to take advantage of higher interest rates as the Central Bank of Kenya approved their risk-based lending model while also diversifying from the huge…

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MarketsNews

Bank generous to shareholders despite looming liquidity challenge

Banks have stepped up dividend rewards to shareholders to lock in investors as share price collapse on exiting foreign investors. According to the Central Bank annual report, banks proposed dividends increased by Kes5.4 billion from Kes42 billion in December 2021 to Kes47.2 billion in December 2022. The higher payout helped boost the Return on Equity (RoE), which rose above pre-pandemic levels to 26.5 percent on higher returns to shareholders. Bank return on shareholders have rose from 22.3 percent in 2021 and 14.2 percent in 2020 when it collapsed on the effects of the Covid-19 pandemic, a period during which lenders restricted shareholders’ dividend to conserve cash for…

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MarketsNews

Coop Bank first quarter profit up on double-digit customer loan growth

A double digit loan growth to the private sector has handed Cooperative Bank a five percent jump in net profits to Kes6.1 billion in the three months to March this year up from Kes5.8 billion in a similar period last year. Coop Bank saw customer loans jump 11 percent to Kes360.1 billion up from a growth of 8 percent in a similar period last year. Increased private sector loans saw the bank earn Kes10 billion in interest income up from Kes8.9 billion last year. The lender also made extra money from fees and commission on loans of Kes3.3 billion up from Kes2.5 billion in the…

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EconomyNews

Banks exposure to GoK debt cut to a decade low

Local Kenyan lenders are holding the smallest portion of state debt in almost ten years as banks dump government securities on rate hikes, heightened risk of default and the possibility of restructuring. Central bank data shows the portion of domestic debt held by banks stood at 45.64 percent in April down from 54.8 percent in June 2020.   The last time banks held less than 50 percent of domestic debt was 49.4 percent in March 2014, and have been accumulating risk free state debt over the decade, (especially during the rate cap era) to a high of 57.8 percent in July 2015. Kenyan banks hold Kes2…

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