City residents walk past Co-operative Bank branch on Kenyatta Avenue. PHOTO | DENNIS ONSONGO | NMG
Co-operative Bank posted an 18.9 percent net profit increase in the nine months to September on higher interest and non-interest income.
The bank’s net income in the review period stood at Sh11.6 billion, up from Sh9.7 billion a year earlier.
Total interest income rose 21.5 percent to Sh39.5 billion as the lender expanded its loan book and investment in government debt paper.
Loans to customers increased 7.7 percent to Sh306.3 billion while investment in treasuries rallied 55.5 percent to Sh193.3 billion.
Co-op Bank bucked the trend of reduced provisions for bad debt seen among its peers that have already published their results.
It raised its provisions 50.3 percent to Sh6 billion as gross defaults increased 23.1 percent to Sh49.4 billion.
The bank’s increased conservatism contributed to its operating expenses rising 19.2 percent to Sh27.9 billion.
Its deposit base rose 11.9 percent to Sh420.4 billion, leading to interest expenses increasing 22.3 percent to Sh10.9 billion.
Kingdom Bank
Kingdom Bank made a net profit of Sh413.1 million in the review period, contributing to Co-op Bank’s consolidated earnings and marking a rapid turnaround for the subsidiary which previously traded as Jamii Bora Bank.
Co-op Bank acquired a 90 percent stake in the small lender in August last year, stemming its multi-year losses.
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