Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Cooperative Bank of Kenya Drops on Reduced Earnings Expectation

Dec. 13 (Bloomberg) -- Cooperative Bank of Kenya Ltd., the East African nation’s fifth-largest lender by market value, fell for the first session in three on expectations of reduced earnings and increased provisions against bad debt.

The stock dropped as much as 4.2 percent to 11.50 before it pared losses to 2.1 percent at 11.55 as of 2:31 p.m. in Nairobi. Yesterday was a public holiday.

“The drop is due to expectations of reduced earnings on account of lower credit growth and increased provision for doubtful debt as the higher interest rates increase chances of default,” Eva Njuguna a research analyst at Nairobi-based Sterling Capital Ltd., said in a phone interview.

Commercial banks are expected to extend the loan repayment period, absorb additional costs and not raise interest rates again despite an increase in the benchmark rate, Richard Etemesi the Kenya Bankers Association chairman told reporters today in Nairobi. Kenyan lenders have raised their interest rates on borrowed funds to match the rise in the benchmark rate to 18 percent.

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.