Just finished looking at 2010 sheets for kcb, coop and ebk, coop had 4 billion g-paper for dealing purposes, ebk had 22 billion, kcb had 0.8 billion (If thats what they call 'held for trading investments), bottom line is, ebk may have pulled good numbers due to bonds in 2010, this year, they must be suffering from insomnia.

22B?! That's a lot. If it is indeed too bad for them then I see them reclassifying them as "held to maturity" the effects of that we will get to see soon. Cheers.

guru, i actually dont support your argument. Banks are essential in everyday life. Even the unbanked use money dispensed thru banks. Those oil firms get loans from banks. All that interest is passed to the end user!

For a complete analysis of The Co-operative Bank of Kenya 1st Quarter 2011 results, go to http://kenyainvesting.blogspot.com

I've looked at the Financials and i must say i'm impressed.
- They are sitting on a good positive cashflow.
- Increased their loan portfolio substantially.
- Reduced govt securities.
- Customer deposits are up.
- Interest income from loans & advances substantially up and interest from govt securities nearly same meaning that they are now concentrating on their core business commercial banking.
- Decrease in interest expense good with me as still shows that they are running their core business efficiently and their spread seems to be widening.
- Other fees & commissions up though I'm always weary of this item as some institutions shore up their income using this.
- Though they should be keen on their Staff costs & other operating expenses as they are to me substantially growing and the trend might not be good in the long run.
- What has made me smile is the big drop on Gross non performing loans.
- The rise in Insider loans is not so comforting as at times this creates a weakness.
- Strengthening their core capital.

All in all i think its a brilliant performance.