Co-op Bank Registers 14.3 Billion Shillings In Profits For 2020

The Co-operative Bank of Kenya has registered profits before tax of 14.3 billion shillings for the financial year ended December 2020 compared to 20.7 billion shillings registered in 2019.

The profit after tax for Co-op Bank is at 10.8 billion shillings compared to 14.43 billion shillings in 2019. This was a 23 percent drop on the account of Covid-19 related loan loss provisions and the absorption of currency translation losses in their South Sudan outlets.

The Co-op Bank has taken loan loss provisions of 8.1 billion shillings, a 220 percent increase from 2.54 billion shillings in 2018 as a result of the ongoing Covid-19 pandemic.

“We continue to actively engage our customers to support them through this period by re-aligning the servicing of facilities, funding, and transactional needs as the situation unfold,” said the lender in a statement.

As of December 2020, the total assets for Co-op Bank grew by 80 billion shillings to 537 billion shillings from 457 billion shillings at the same period in 2019. The bank has made tremendous strides in enabling 92 percent of their services to alternative banking channels such as mobile.

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Net loans and advances book grew by 20 billion shillings from 266.7 billion shillings to 286.6 billion shillings. Investment in government securities grew by 44.1 billion shillings to 161.9 billion shillings compared to 117.8 billion shillings in 2019.

Customer deposits grew by 13.8 percent from 332.8 billion shillings to 378.6 billion shillings. Borrowed funds from investment partners grew by 19.6 billion shillings to 46 billion shillings from 26.4 billion shillings in 2019.

Shareholders’ funds grew to 90.7 billion shillings from 79.3 billion shillings in 2019. The total operating income grew by 11.1 percent from 48.5 billion shillings to 53.8 billion shillings. Total non-interest income grew by 16.1 percent from 31.3 billion shillings to 36.3 billion shillings. Total operating expenses grew by 41.7 percent from 27.8 billion shillings to 39.4 billion shillings.

Following the registered results, Co-operative Bank has maintained the dividends at 1 shilling per ordinary share to be paid on or about 14^th April 2021.