In the past one year, the counter has traded at a low of Sh. 20.50, reflecting the same trend as it had on Thursday when it also closed the day at Sh. This stock is a Hold and will eventually reward medium to long-term investors,” he says. “Investors shouldn’t worry too much about the declined profits. Further, according to Eric Munywoki, a research analyst at Old Mutual Securities, the bank’s soaring eagle strategy is expected to bring down its cost to income ratio to below 60 per cent, bring in client based management while increasing mobile offering. He however cautions that the bank’s core base, which comprises of cooperatives, is now open to direct targeting from competitors. “The restructuring by McKinsey offers the stock some upward potential that medium to long-term investors may wish to see,” says Tuitoek. According to Kevin Tuitoek, a research analyst at Genghis Capital Limited, the stock is a Hold for its investors, since its capital buffers remain well in place. Following the profit dip, the bank announced that it would be retaining international advisory firm McKinsey as it seeks to advance its cost-cutting measures. Nonetheless, the bank’s net loan book grew to Sh. Alarmingly, 23 of the bank branches opened by the bank last year recorded a combined loss of Sh. 500 million net loss posted by its South Sudan branch as a contributing factor to the loss. The bank attributed the poor profits to the one lay-off of 160 senior staff it carried last year.
Rapt stock buy or sell full#
Co-op Bank: Last week, Co-operative Bank announced a 12 per cent dip in its annual net profits for the full year ended December 2014.