Renaissance Capital’s insightful analyst comment on Co-op Bank’s audited 2019 results

Renaissance Capital is a leading independent investment bank, providing access to over 50 markets across the globe with operations in Africa, Central and Eastern Europe, North America, and the Middle East.

The firm’s unique on-the-ground footprint, with offices across the world’s top business capitals – Lagos, London, Moscow, New York, Johannesburg, Cape Town, Nairobi, Cairo and Nicosia – provides its clients with an unrivalled offering, serving as a gateway to emerging and frontier markets for international investors.

Renaissance Capital has carved a successful niche in several core businesses: Equity and Debt Capital Markets, M&A, Global Markets – including Equity & Equity derivatives, Fixed Income, FX and IR derivatives, Commodities, REPO and Financing, as well as Research and Prime Brokerage.

On the dynamic banking field, the firm has released an insightful market analysis on The Co-operative Bank of Kenya’s audited 2019 results, with several key highlights:

  1. Renaissance Capital maintain a BUY Rating on Co-op Bank stock, which they give a Target Price of KES 21.40, implying an upside potential of 45%.
  2. Co-op Bank continues to clean-up its loan book, with the ratio of Non-Performing Loans (NPLs) improving to 9.9% in 2019 as compared to 10.3% in 2018.
  3. Co-op Bank has improved operating efficiencies by controlling costs, with the Cost-to-Income Ratio (CIR) improving to 52.1% in 2019 as compared to 54.6% in 2018.
  4. Co-op Bank’s proposed dividend of KES1.0 per share translates to a final Dividend Yield of 8%, as compared to 5% from KCB and 6% at Equity.

The firm steadily continues to provide a full scope of investment banking products to its clients, delivering a unique, integrated offering in emerging and frontier markets.