Coop Bank released their FY’22 earnings results posting a 30.53% & 33.25% climb in EPS & PAT respectively to KES 3.72/share and KES 22.04Bn respectively driven by a 10.92% increase in net interest income and a 32.63% growth in non-interest income. Trailing ROaE & ROaA improved to 24.57% & 4.30% respectively in FY’22. NIMs remained adequate at 8.88% while the profit margin edged up 355bps y/y to 30.93%. In line with our expectation, the board of directors recommended a first and final dividend of KES 1.50 in FY’22 representing a 50.00% increase from KES 1.00 paid out in FY’21. The book closure of the dividends is set for 24th May 2023 while payment date is set for 9th June 2022.
Loan book grew 9.41% y/y to KES 339.39Bn faster than the 3.94% y/y growth in the customer deposits to KES 423.80Bn leading to a 4.00% points growth in the loan deposit ratio to 80.08%. We observed considerable growth in Total Assets of the group (+4.70%) to 607.20Bn, (+12.12%) in external funds from development funds to KES 48.10Bn from KES 42.90Bn in FY’21 and a 7.44% increase in shareholder funds to 107.68Bn from100.22Bn recorded the prior year. Allocation to government securities declined 5.71% y/y to 175.15Bn in FY’22 indicating increased focus on lending. The customer deposits currency mix stood at 91.00% local Currency and 9.00% foreign currency.
