Co-op Bank reports Ksh7.4 billion half-year profit. Here are 3 more things investors need to know
By Nairobi Stocks Review
The Co-operative Bank of Kenya (COOP) on August 18 reported a profit of Ksh7.4 billion for the six months through June 2021. The profit increased from Ksh7.2 billion in a similar period last year. Co-op bank’s share price is up 19% so far in 2021 to just under Ksh14.
Here are the other takeaways from the bank’s half-year report.
Co-op Bank’s South Sudan business disappoints
In addition to its domestic market Kenya, Co-op Bank operates in South Sudan through a joint arrangement with the government there. The South Sudan business is owned 51% by Co-op Bank and 49% by the government. The business made a loss of Ksh290 million in the half-year period.
Kingdom Bank makes Ksh275 million profit
Co-op Bank acquired a controlling stake of 90% in Jamii Bora Bank in 2020 and rebranded it to Kingdom Bank. Kingdom operates some 17 branches and serves more than 444,000 customers. It looks to be a good bet so far. Kingdom made a profit of Ksh275 million in the 2021 half-year period, more than double its 2020 full-year profit of Ksh124 million.
Co-op Bank’s digital business continues to grow
The bank revealed that some 5.2 million customers have taken up its MCo-op Cash mobile money service. Customers are not only using the service to send and receive money, but also apply for loans. Loan uptake through MCo-op Cash platform hit Ksh33.5 billion by the end of June, suggesting a monthly average of Ksh5.6 billion. Offering loans is the most lucrative business for banks.
How to buy Co-op Bank shares
You can become a Co-op Bank shareholder by buying shares in the company. Co-op Bank shares are traded on the Nairobi Securities exchange under COOP ticker symbol. You can purchase the shares online through a stockbroker if you have a CDS account. (Read How to open a CDS account in Kenya)
The minimum amount of shares you can buy is 100 shares. If you are planning to buy Co-op Bank shares online in the future, find out how to choose the best stockbroker for beginners in Kenya.