COOP Bank 1Q 2011 Earnings Analysis
2011 Vs 2010 (Billion Ksh)
Total Interest Income 3.4B 2.7
Total Interest Expense 0.6 0.7
Non Interest Income 1.7 1.3
Total Operating Income 4.5 3.2
Total Other Expenses 1.9 2.5
Profit Before Tax 2 1.3
Profit After Tax 1.6 1
Earnings Per Share 0.47 0.30
Gok Securities held for Trading 24 7.2
Commentary
Fantastic results from Coop Bank, the results were achieved by increase in interest income of 26% and non interest income of 30%, the bank was also able to cut its costs by 14% in 1Q 2011 which is a very good indicator of the ability of the management to contain costs. I also see unlike most banks they avoided trading in bonds excessively in 2010 hence the significant jump in non interest income this quarter. At closing price of 18.50 i now put the forward PE at 9.8 base on an EPS of 1.88 if they maintain this performance through out the year, i believe there is at least 25% upside potential to that price.
Courtesy of
http://contrarianinvesti...1-earnings-analysis.html