Q1 PAT rises to
KES1.96B vs KES1.64B;
loanbook KES113B vs
KES91B; Deposits KES145B vs
KES135B

what about SACCOs lending at 17 pc?!

Looks like a lot of lending was done in Q2 & Q3 of 2011 before the CBK woke up to inflation. What's more telling is the slow down in Q4 of 2011 into Q1 of 2012.

The CBR does appear to be responsible for the most of the growth banks reported in Q1 of 2012. It appears it's mwananchi bearing the full burden of the CBR as opposed to the everyone (bank, gover and citizen). Co-op's growth is from jerking up the lending rates on helpless customers with loans to be serviced. Only in Africa do you get the average interest income earned rate rising up from 13% to 20% within 3 months and life goes on as usual let alone this being a third world country where every extra coin matters a whole lot.

What's also telling is the heat banks are feeling on the deposit end of things suggesting that CBR could be hitting harder than intended. the average cost of deposits for Co-op has jumped from 2.3% in Q4 to 6.5% in Q1 and from 1.7% from a year ago. This can only mean Co-op is struggling to raise deposits which could also mean there is a huge chinck and ask on the strategy to keep opening branches...6.5% is what NIC and CBA should be paying for deposits coz of the strategy they are running.

Strangely though what has left me wondering as to the level of upishi/ quality of results is how you can raise average lending rates from 13% to 20% and in return the book at risk remains at 4.1% from 1 year ago while provisions also remain at 0.9% of the gross book as they were 1 year ago. Who is fooling who here and surely why should we believe auditors and their work?

With the high interest rates, SACCOs have become the popular financiers for borrowing because of lower interest (18% or below). Some people are even buying off their bank loans with SACCO loans!! I think Co-op will benefit highly from this with their FOSA/Sacco Link product. In lay man's terms, FOSA (Front Office Service Activity) facilitates SACCOs to provide retail banking services to their customers and Co-op handles the money. So customers can access their accounts through Co-op ATMS with the use of SACCO link cards....
Does anyone else share my sentiments?