COOP Group released their HY’23 earnings results posting a 5.87% y/y and 6.67% y/y climb in PAT and EPS respectively to KES 12.14Bn and KES 2.08 per share respectively. The lenders bottom line growth was driven by a 2.33% y/y growth in net interest income and a 3.95% y/y increase in non-interest income. Trailing ROaE and ROaA improved to 22.16% and 3.58% respectively in HY’23. NIMs remained adequate at 8.22% while profit margin edged up 94bps y/y to 34.32%.
Loan book grew 10.70% y/y to KES 365.39Bn faster than the 9.65% y/y growth in customer deposits to KES 463.87Bn leading to a 75bps growth in the loan deposit ratio to 78.77% from 78.02% in HY’22. On a q/q basis, we observed the customer deposits grew 9.04% faster than the loan book which which we attribute to enhanced efficiency in customer deposit mobilization. We observed considerable growth in the balance sheet by 14.69% y/y to KES 664.95Bn which we attribute to a significant increase in deposits due from banking institutions. Allocation to government securities increased 2.88% y/y to KES 188.46Bn driven by the hunt for higher yields from government securities.
