The Co-operative Bank had announced a net profit of Sh. 6.58 billion in the first three months of the current 2024 financial year.
This represents a profit growth of 7.7 per cent compared to the Sh. 6.11 that the bank recorded in the same period the previous year.
During the first quarter under review, net interest income increased by 8.6 per cent to stand at Sh. 11.7 billion while non interest income stood at Sh. 7.08 billion.
The bank’s total operating income grew by 5.1 per cent from Sh. 17.9 billion to Sh. 18.8 billion.
Co-op Bank to lend Sh. 3.32 billion to women-owned SMEs across Kenya
The bank’s total assets increased 13.2 per cent to Sh. 714.6 billion.
The bank’s increased its provisioning for loan defaults by four percent to Sh. 1.59 billion while staff costs went up 12.7 per cent to Sh. 4.46 billion on the back of salary increments and the hiring of new employees as it opened eight new branches.
“The Bank continues to invest in a competitive team set to serve at existing functions at the same time tap new growth opportunities across all areas of the business,” said Co-operative Bank’s Group Managing Director and Chief Executive Officer Dr. Gideon Muriuki.
He noted that the bank has managed to strike a healthy balance between investments in brick-and- mortar and staff growth, on the one hand, and cost containment on the other.
Co-op’s branch network has expanded to a total of 195 outlets with 4 in South Sudan. “Staff Numbers have grown from 4,864 as at the close of 2022 to 5,361, creating job opportunities for over 497 young people,” said Dr. Muriuki.
During the first quarter under review, net loans and advances to customers increased by 5 per cent to Sh. 378.1 billion.
Customer deposits grew to Sh. 481.8 billion from Sh. 419.8 billion. This marked a 14.8 per cent increase. The review period saw external funds from development partners grow 24 per cent to Sh. 60.1 billion.
