Co-op Bank posts Ksh 9.3 Billion HY pre-tax profit

Co-operative Bank (NSE: COOP) has recorded  a Ksh9.3 billion Half year Profit Before Tax compared to Ksh 10.4 Billion last year.

Profit after tax for the period was Kshs. 6.6 billion compared to Kshs. 7.4 billion the previous year.

“As a result, we have seen our Cost to Income ratio improved from 52.1 percent  in FY2016 to 47.9 percent in half year 2017,” said Dr. Gideon Muriuki, the Bank’s Chief Executive Officer.

Balance sheet

• Total assets grew by Kshs 20 billion (+5.6%) to Kshs. 383.3 billion compared to Kshs 363 Billion in the same period last year.

• Net loans and advances book grew by Kshs 31.3 Billion (+14.2%) to Kshs. 252.6 billion compared to Kshs. 221.3 Billion in the same period last year.

• Customer deposits grew by Kshs. 7.6 billion (+3%) to Kshs. 287.2 billion compared to Kshs. 279.6 billion in the same period last year.

• Shareholders’ funds grew from Kshs. 57.9 billion to Kshs. 64.5 billion, an impressive growth of 11.3%, supported by a steady growth in earnings and a dividend policy geared towards a progressive growth.

Profit & Loss

• Total interest income reduced by 10.3% from Kshs 21.47 billion in 2Q2016 to Kshs 19.26 billion in 2Q2017 with interest on loans and advances declining by 9% despite the 14.2% increase in net loans and advances

• Total interest expense reduced by 17% from Kshs 7 billion in 2Q2016 to Kshs 5.84 billion in 2Q2017 on account of reduced cost of funding.

• Foreign exchange income increased by 28.2% from Kshs969.35 million to Kshs1.24 billion.

• Other fees and commissions increased by 3.5% from Kshs3.76 billion to Kshs3.89 billion.

• Fees and commissions from loans and advances increased by 14.3% from Kshs1.20 billion to Kshs1.37 billion.