Co-op Bank Loan Moratorium: The Co-operative Bank has restructured loans worth Sh. 15 billion in a bid to help customers cope with the effects of the coronavirus pandemic has that has left global economies on their knees.
According to the financial results for the first quarter of 2020, Co-op Bank announced that it had engaged all the customers requiring the three categories of financial assistance on loans. “The bank has proactively engaged all the customers requiring an interest moratorium period, customers requiring a better structure or longer repayment period, and customers requiring additional funding to manage the coronavirus crisis,” said Co-op Bank in a statement.
This indicated that while most banks have shied away from lending, the Co-op Bank has proved to be a reliable partner to its customers by lending the much needed hand during the crisis.
The bank’s move to cushion customers follows a plead from the Central Bank of Kenya which asked local banks to assist customers who might be facing difficulties in honouring their loan repayment obligations. It will further be noted that Co-op Bank was also the first corporate in Kenya to pledge support for the Coronavirus fund kitty with a donation of Sh. 100 million.
In a statement signed by the Group’s Managing Director and CEO Gideon Muriuki, the bank said that the donation was intended to help the government purchase more ventilators.
“The Board of Directors and staff of Co-Op Bank is honoured to support with key cash contribution of Sh. 100 million, preferably to be allocated towards purchase of critical ventilators,” the statement read in part. “The outbreak of Covid-19 pandemic is the biggest crisis of our time, particularly in the effort to source the critical lifesaving medical supplies and equipment especially ventilators that are short in supply globally.”
In the first quarter results, the bank posted a profit after tax of Sh. 3.6 billion in the first quarter of the current 2020 financial year. This profit came even as profit before tax stood at Sh. 5.1 billion in the first quarter, same as the profit before tax that the bank recorded in the same period the previous year. This achievement came amidst the impact of the coronavirus pandemic that has seen most businesses in the country report shrinking revenue flows.
“We have put in place a comprehensive mitigation strategy intended to ensure full banking services continue being accessible to customers in a safe environment consistent with the Ministry of Health guidelines,” said Dr. Muriuki said. Co-op Bank Loan Moratorium.