Thursday, September 28, 2023

Co-op Bank posts Sh. 6.1 billion net profit in first three months of 2023

The Co-operative Bank has posted a net profit of Sh. 6.1 billion in the first three months of the 2023 financial year.

This net profit represents a growth of 5.2 per cent from the Sh. 5.8 billion net profit that the bank recorded in the same period the previous year.

During the period under review, net interest income grew by 3.9 per cent from Sh. 10.4 billion to Sh. 10.8 billion.

Total operating expenses increased by 8.8 per cent from Sh. 9.0 billion to Sh. 9.8 billion. In the sane vein, the bank’s total operating income grew by 6.5 per cent from Sh. 16.8 billion to Sh. 17.9 billion.

Co-op Bank cuts interest rates for personal loans, asset financing

Non-funded income grew faster than interest income at a growth rate of 10.8 per cent in non-interest income to touch Sh. 7.1 billion.

In the same period last year, Co-op Bank, mostly owned by Saccos, earned Sh. 6.4 billion from non-interest income. Non-interest income includes fees and commissions.

According to Co-op Bank chief executive officer Dr. Gideon Muriuki, the strong performance by the bank is in line with the Co-op Group’s strategic focus on sustainable growth, resilience, and agility.

Dr. Muriuki adds that the bank group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.

“This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa,” says Dr. Muriuki.

Dr. Muriuki further noted that Co-op Bank has been working to build up its loan loss reserves.

“Credit Management remains a key focus area, with the Group prudentially making provisions of Sh. 1.5  billion which has enhanced the Bank’s Loan Loss Reserve and, or Coverage levels to a high of 72 per cent from 69 per cent that was recorded in 2021,” he said.

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