The Co-operative Bank Group has registered 14.64 billion shillings Profit before Tax for the third quarter up to 30 September 2018.
The profit is a significant growth compared to 13.74 billion shillings reported in 2017, representing a growth of 7 percent against the backdrop of a challenging economic environment in the period.
Co-op Bank’s Profit after tax grew 8 percent from 9.54 billion shillings the same period in 2017 to 10.31 billion shillings this year.
The growth has been attributed to lower loan provisions and improved interest income from government securities.
The total interest income improved by 3.5 percent from 29.85 billion to 30.89 billion shillings. The trend was achieved on the account of increased interest income from government securities by 13.5 percent from 6.12 billion to 6.95 billion shillings and interest income from loans & advances increasing by 1 percent from 23.58 billion to 23.77 billion shillings.
Total interest expense remained sustainable increasing marginally by 1 percent from 9.08 billion shillings to 9.15 billion as deposits grew 3 percent.
The total operating income increased by 5 percent from 30.91 billion shillings to 32.32 billion shillings.
Part of the profits is owed to Co-op Bank’s regional expansion where its subsidiary in South Sudan registered a Profit before tax of 235.12 million shillings in the third quarter of 2018 compared to a profit of 39.15 million shillings during the same period in 2017.
Meanwhile, the Co-operative Bank Group continues to deliver strong performance as it deepens product offering through Sales Force Effectiveness to the 7.6 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to growing market share.