Co-operative Bank’s FY20 net earnings plummeted 24.4% y/y to KES 10.8B driven by a 219.5% y/y surge in loan loss provisions to KES 8.1B and a 23.9% y/y uptick in operating expenses. The Group announced a KES 1.00 dividend per share translating to a dividend yield of 7.8% on the current price of KES 12.80 with book closure slated for 31st March 2021 and payment date on 14th April 2021.

We maintain a BUY recommendation on COOP with a target price of KES 16.82 offering a potential upside of 31.4% on the current price.