The Co-operative Bank of Kenya has reported 9.8 billion shillings for the third quarter of 2020. The bank’s profits are resilient and much higher as compared to peers who have registered large declines in profits.
The Covid-19 pandemic has affected various sectors including financial institutions with most of them reporting a drop in profits. All commercial banks, including Co-operative Bank of Kenya, had to restructure their loans to cushion customers against the Covid-19 pandemic.
“As at the close of the third quarter, a total of 46 Billion shillings in loans have been restructured to support customers impacted by the pandemic,” Group CEO Gideon Muriuki said in a statement.
He appreciated the challenges that businesses and households are grappling with from the disruption occasioned by the ongoing pandemic, that has led to the Group’s increment in loan loss provision.
Loan loss provisions for the lender rose by 89 percent to 4.0 billion shillings from 2.1 billion shillings in September 2019. The bank’s interest income grew by 7 percent to 32.5 billion shillings while non-interest income fell by 3.5 percent to 13.6 billion shillings.
The total non-performing loans for Co-op Bank in the third quarter expanded to 34.2 billion shillings from 24.8 billion shillings, this being a 37.8 percent increase. At the same time, the total assets increased by 15.9 percent to 510.9 billion shillings while total liabilities increased by 16.9 percent to 427.2 billion shillings.
Co-op Bank’s customer deposits improved by 16.4 percent to 375.5 billion shillings and its loans and advances to customers increased by 5.7 percent to 284.2 billion shillings.