COOPERATIVE BANK KENYA'S 2016 LUCKY BREAK

Ordinarily, Cooperative Bank Kenya ltd did not look destined to end 2016 year with higher margin but it did by clinching 32.2% as against 2015's 30.8%,

In the first place growth in gross earnings at 9.98% to 54 966.3m Ksh was not that super even though driven by a higher 14.9% increaae in interest income to 42264.7m Ksh. guarded by double digit growths in interest income government securities and loans and advances.

More scary was the fact that three major controllable  cost heads preferred double digit % top up with loan loss provision going up  with 28.7% to 2599.7m; and directors pay rising by 10.3% to 163.7m ksh.

The third was Other operating expenses which ended the year up by 31.3% to 8592.8m Ksh to outpace all cost heads.

Two others, staff costs and rent rose by single digit 5.32% to 9399.7m Ksh and 4.76% to 1462.4ksh respectively.

To boot, fee and commission income fell short of 2015 by 0.38% at 2330.9m Ksh and fired trading income dived by 43.5% to 1804.3m Ksh.

However, good wind blew down Cooperative Bank's way in the form of 6.02% decrease in Interest expense to 12,768,3m and rather strong 163,1% rise in Other income to 1109.7 ksh.

Thus Cooperative Bank harvested 15.2% growth in profit before tax to 17 723.5m Ksh leading to the higher return on each N100 income.

Add forex operations gains of 1859.2m compared to 1890.7m loss previously; 708m more in fair value appreciation and 1227.7m revaluation profit, comprehensive profit rose to 16,110.6m Ksh and 2.64 Ksh as earnings per share.

But wisely, the directors opted to declare only 0.80 ksh per share as dividends keeping the rest, paper profit and all in reserve .

 
COOPERATIVE BANK KENYA 
                      Bn Ksh. Full year 
                          2016           2015
Gross income 54.97         49.98
Interest inc      42.26.        36.80
  " expense.      12.77.        13.59
Fee& comm.      2.33.          2.34
Other ".              7.46.            7.12
Forex trading   1.80.            3.19
Dividends.         0.07.          0.069
Other income   1.11.           0.42
Loan loss          2.60.           2.02
Staff costs.       9.40.           8.92
Directors pay    0.16            0.15
Rent.                  1.46.            1.40
Other expense 8.59.            6.54
Profit B4 tax   17.72.          15.38
Profit margin % 32.2.          30.8
EPS.                    2.64.          2.31
Dividend             0.80.          0.80

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