Co-op Bank’s Profits Up To 11.6 Billion Shillings

The Cooperative Bank of Kenya has posted 11.6 billion shillings net profit for the nine months ended September.

The bank attributes the 18.9 percent growth to the increase in net income which rose by 21.3 percent to 28.7 billion shillings.

The total operating income grew by 19.2 percent to 44.4 billion shillings while Loans issued to customers, over the period, grew by 7.8 percent to 306.3 billion shillings.

Customer deposits on the other hand grew by 12 percent to 420.4 billion shillings.

The bank registered a 50 percent growth in loan-loss provisions, which made the company realize a 19.2 percent rise in operating expenses to 28 billion shillings.

According to the firm’s Chief Executive Officer (CEO) Gideon Muriuki, the bank’s commitment is to execute a proactive mitigation strategy anchored on a strong enterprise risk management framework and to enable uninterrupted access to banking services.

“We shall ride on the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa, continue to pursue strategic initiatives that focus on resilience and growth in the various sectors as the economy continues to recover, “said Muriuki.

To aid businesses and households which are struggling to recover from the effects of the COVID-19 pandemic, the bank has revised its loans provisions upwards to 6 million shillings.

“A total of 49 billion shillings in loans was restructured during the CBK restructure window that ended on 31st March 2021, with the restructured facilities largely performing as per the realigned agreements,” said the bank.