Coop management seem to lack strategy as a reason for holding vital info!
This will make the share head south unless they clarify through investers briefing on how they intend to do with the shares created

@crusher the 40 cents represented a 40% of its profits which is quite generous if I was to be asked.

The new shares will not be listed anytime soon since the management must be given the green light by shareholders in a AGM.

The 20% growth forecast might end up being the industry norm this is because of rise in interest rates and inflation.Many banks are incurring loses in the bond market currently.[actually I got this sneak peak into bond trading from alykhan satchu].The argument is if interest rate rise price of bonds go down.

If you get hold of the banks financial report you will admire the resilience of the bank management I am not worried abt the listing of the shares bcoz I would buy the rights anyway.

@selah, other banks like equity and kcb will surely record far better growth than the 20% that Coop is expecting. In addition, the banks that are able to take advantage of the volatile forex market will make higher forex trading income to complement the lower bond trading income.

That aside, how coop plans to finance its expansion to Southern Sudan and other regional countries with higher growth potential remains a big question to be answered. We currently know they even need capital to improve their local operations ratios. If they are to issue rights, then that would be the preferable time to increase ones holding because they will be highly discounted.

My 2 cents

@Aguytrying, 20% is not good enough.

On the rights issue, the answer is in the following words by bossman Muriuki, "As the bank is growing, as we go into new products, as we go into the region, in the future we may require additional capital, probably do a rights issue ... Not this year, definitely"

This counter has taken a heavy beating recently. Of course that's what is expected when shareholders hear that the bank will grow by 20 p.c