The growth in profitability is attributable to higher income in the period with the lender seeing its total operating income rise by 19.4 per cent to Ksh.44.4 billion.
The bank’s net interest income has grown by 21.6 per cent to Ksh.28.7 billion while non-interest funded income (NFI) has jumped to Ksh.15.7 billion from Ksh.13.6 billion.
Nevertheless, Co-op has raised its cover for loan defaults across the period with the loan-loss provisioning costs jumping to Ksh.6 billion from Ksh.4 billion in September 2020.
The rise in the default’s cover has seen non-interest expenses rise to Ksh.28 billion from Ksh.23.5 billion last year.
Net loans and advances to customers have grown by 7.8 per cent to Ksh.306.3 billion as Co-op’s total assets hit Ksh.592.9 billion.
Subsequent to the profit rise, Co-op Bank earnings per share have improved to Ksh.1.98 from Ksh.1.67 previously.
Co-op’s subsidiary Kingdom Bank has remained profitable in the period posting earnings of Ksh.413.1 million.
The performance of the recent acquisition has been similarly anchored on higher operating income which stood at Ksh.2.5 billion in the period.
Kingdom’s core capital remains adequate at Ksh.1.2 billion while the unit’s liquidity ratio is more pronounced at 380.6 per cent.
Further, the subsidiary’s asset quality has improved with gross non-performing loans (NPLs) falling to Ksh.6.4 billion from Ksh.6.7 billion in June.
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