Co-operative Bank (COOP) - 2026-05-16

Business Snapshot

Co-operative Bank (COOP) remains relevant to NSE portfolios because it attracts recurring investor attention and should be judged on filings, capital discipline, and execution rather than headlines alone.

Financial Trend

• [2026-04-01] Earnings: • Company Name & Filing Type: Co-operative Bank of Kenya Ltd. – FY'25 Earnings Note (Earnings filing)
• Key Financial Numbers: Net earnings rose 16.9% y/y to KES 29.75 Bn; net interest income up 22.0% to KES 62.85 Bn; total assets grew 11.3% to KES 827.35 Bn; final dividend declared at KES 1.50 per share (total KES 2.50, +66.7% y/y).
• Important Announcements & Risks: Board declared first-ever interim dividend (KES 1.00) and maintained final dividend; outlook positive with expected credit demand and low rates supporting margins; downside risk from prolonged Middle East conflict impacting growth.

Valuation Lens

Anchor valuation on earnings durability, asset quality, funding mix, and the credibility of management guidance rather than a single reporting-period multiple.

Risks

• Sparse or incomplete filing extraction can hide important changes in earnings quality.
• Rates, FX pressure, or regulatory shifts can quickly change the investment case.
• A thin evidence base increases the risk of over-reading one announcement or one quarter.

Rates & Liquidity Context

• Track whether current money-market conditions support credit growth, funding stability, and valuation multiples.
• Reprice the thesis when CBR, T-bills, or interbank conditions move materially.

What To Watch

• [2026-03-20] Earnings: • Co-operative Bank of Kenya HY'24 Earnings Note: Net earnings rose 7.0% y/y to KES 12.99Bn with annualized EPS increasing to KES 4.43, while total operating income grew 10.9% y/y to KES 39.23Bn driven by net interest income of KES 23.86Bn and non-funded income of KES 15.37Bn, though ROE declined 170bps to 20.5%.
• Analysts maintain a BUY recommendation with a one-year target price of KES 14.90 (c.15.5% upside), as management tightened credit impairment provisions by 4.9% to KES 3.0Bn and outlined a growth strategy anchored on digital transformation, operational efficiencies, and expanded MSME working capital lending.
• Key risks include deteriorating asset quality with gross NPLs surging 19.0% y/y to KES 69.55Bn (NPL ratio at 16.9%), contracting net interest margins down 50bps to 7.3% amid a higher-for-longer interest rate environment where cost of funds jumped 160bps to 5.4%, and declining operational efficiency with the cost-to-income ratio rising to 46.6%.

Informational only, not investment advice.