Co-operative Bank IS Now Second Most Valuable Bank at NSE

The Co-operative Bank of Kenya has achieved the remarkable feat of becoming the second-largest bank listed on the Nairobi Securities Exchange, surpassing the KCB Group, whose stock price has been in a downward spiral.

Co-op Bank’s shares remained steady at Ksh11.85 on Thursday, resulting in a market capitalization of Ksh69.5 billion.

This significant milestone, as reported by Business Daily, marks the first time Co-op Bank has outperformed KCB, with a notable gap of Ksh2.3 billion.

On the other hand, KCB’s share price plummeted by 4.78% on Thursday, closing at a 52-week low of Ksh20.9 and reducing its market value to Ksh67.1 billion.

These achievements for Co-op Bank come on the heels of strong financial performance, driven by impressive results for the first half of the year.

Co-operative Bank Group reported a pre-tax profit of Ksh16.4 billion for the first half of 2023, reflecting a 7.4% growth compared to the Ksh15.3 billion recorded in the same period in 2022.

The financial results translated into an after-tax profit of Ksh12.1 billion, representing a 5.25% increase from the Ksh11.5 billion reported in 2022.

Dr. Gideon Muriuki, the Group Managing Director and CEO of Co-operative Bank Group, attributed this robust performance to the bank’s strategic focus on sustainable growth, resilience, and agility.

KCB Group’s share price decline has accelerated in recent weeks, following lower earnings and a surge in provisions for loan defaults in the first half of the year.

At the beginning of the year, KCB’s market value held a significant lead over Co-op Bank by Ksh52.2 billion. However, KCB’s descent to third place resulted from a Ksh56 billion decrease in paper wealth since the start of the year.

During the same period, Co-op Bank’s losses were comparatively minor, amounting to just Ksh1.4 billion.

The bank has maintained one of the lowest levels of share price volatility among publicly-traded lenders in the country.

Equity Group retains its position as the most valuable bank, with a market capitalization of Ksh135.6 billion, despite incurring losses of Ksh34.3 billion over the review period.