COOP | Co-operative Bank of Kenya Q3 2023 Earnings Note

COOP Group posted a 7.59% y/y climb in net earnings (PAT) to KES 18.39Bn by close of Q3’23. The Group’s earnings per share (EPS), on the other hand, rose 8.25% y/y to KES 3.15. Performance was supported by a moderate 2.46% y/y growth in net interest income and a 2.05% y/y increase in non-interest income. Trailing ROaE marginally declined 14bps y/y to 22.33% while trailing ROaA marginally increased y/y to 3.64% in Q3’23. The net profit margin accelerated 169bps y/y to 34.44%.

Loan Book growth of 12.80% y/y to KES 378.08Bn paced faster than the 0.19% y/y growth in Customer Deposits to KES 432.83Bn – This led to to a 976bps growth in loan-deposit ratio to 87.35% from 77.58% in Q3’22. On a q/q basis, we observed the 6.69% decline in customer deposits – which we attribute to increased sector-wide competition for sticky deposits and rising discretionary spending needs among depositors. We observed a growth in the balance sheet by 6.31% y/y to KES 661.341Bn – supported by leveraged loan-book growth. Asset allocation to government securities decreased by 130bps y/y to 28% driven by faster loan growth and bond maturities. Fair value losses from government securities decreased by 10.6% to KES 9.00Bn.

Valuation – The counter is currently trading at a P/B ratio of 0.61x and a P/E ratio of 2.84x. The counter closed yesterday’s trading at KES 11.25 - representing a YTD loss of 8.54%. We maintain our BUY Recommendation on the counter with a target price of KES 14.39 representing an upside of 27.91% from yesterdays closing price.


Download (556.89 KB)


Instagram -
AIB-AXYS Africa Ltd is the fusion of two established companies; AIB Capital Limited and Apex Africa Capital Limited, both with over 25 years of experience in the Securities market. With the solid reputation and experience of the professional teams, we leverage talent and networks to better service businesses and investors looking to capitalize on the African growth story, and its vibrant financial sector.
Latest Reports