Co-operative Bank Net Profit Up 36.6 Percent

The local market gained for a second consecutive day, closing the week at an encouraging note. The NSE-20 share gained a further 0.10% to reach 3872.57 points while the NSE-25 Share Index advanced marginally by 1.24% to close at 4075.55 points.

The NSE All Share Index followed suit, climbing up by 2.11% to close at 140.18 points. Market capitalisation illustrated a similar situation as it appreciated by 0.54 % to KES. 1,971.75 Billion. Equity turnover however bucked the trend, waning by 76.64% to perch at KES 0.49 Billion. The market breadth exhibited further improvements, as the number of stocks that advanced, 19, outweighed the number of stocks that declined, 16.

Co-operative Bank of Kenya (NSE: COOP) announced Q3 15 results for the period ended 30th September 2015 posting 36.6% growth in after tax profits to KES 8.62 Billion. The bank recorded 15.6% growth in net interest income as interest expense scaled at a faster rate as high interest rates prevailed in the market. Remarkably, expenses contracted by 4.5% following the implementation of MCKinsey strategy. We expect that the bank’s cost optimization strategies and further use of the alternative delivery channels will boost the banks’s bottom line growth going forward. In addition, we expect to see growth in the loan book portfolio following USD 105 Million funding from IFC which is set to boost lending to the SMEs Segment.

Equity Market Highlights

Barclays Bank of Kenya Ltd (NSE: BBK) was the most actively traded stock today accounting for 15.97 % of the total market value traded activity. Equity Group Ltd (NSE: EQTY) closed in second place, accounting for 14.85% of the days traded value.

Atlas Development & Support Services Ltd (NSE: ADSS) capped the gainers list, scaling 10.00 % to close the day at KES 2.75. Kakuzi Ltd (NSE: ADSS) registered a 9.67% gain to close at KES 329.00.

Sameer Africa Ltd (NSE: FIRE) was the top laggard of the day, declining by 9.46 % to close at KES 3.35. Express Kenya Ltd (NSE: XPRS) trailed behind, losing ground by 8.24% to close at KES 3.90.