Coop Bank 2020 Results: The Co-operative Bank Group has posted Sh. 10.81 billion net profit for the full year ended December 31. The profit, coming in following an economically subdued financial year, came in as the bank continued to extend financial support to its customers who have been affected by the ongoing coronavirus pandemic.
According to the bank’s chief executive officer Gideon Muriuki, Co-op has so far restructured loans worth Sh. 49 billion. “We continue to actively engage our customers to support them through this period, by re-aligning the servicing of facilities, funding and transactional needs as the situation unfolds,” he said.
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Following these results, the bank will pay Sh. 5.86 billion dividend equal to Sh. 1 per share to its shareholders. During the year under review, net interest income grew by 16.1 percent to Sh. 36.3 billion in line with a 7.5 per cent growth in net loan book to Sh. 286.6 billion. Total non-interest income, mainly from fees and commission, rose 1.9 per cent to Sh. 17.5 billion.
The lender took in loss provisions of Sh. 8.5 billion. This was a 235 per cent increase from Sh. 2.54 billion in 2019. It represented the enormous challenges businesses and households are currently grappling with as a result of the corona pandemic.
The bank’s subsidiary in South Sudan, Co-operative Bank of South Sudan, made a profit before tax of Sh. 107.8 million during the year. This subsidiary is a joint venture (JV) partnership with the Government of South Sudan in which Co-op Bank holds a 51 per cent and the South Sudan government a 49 per cent stake.
The lender says it is confident that the Covid-19 mitigation strategies that have been put in place, including a proactive credit risk management project in partnership with global consulting firm McKinsey will give the business impetus for sustained growth. The bank has also sustained growth in its balance sheet with assets of over Sh. 510 billion supported by loan book of Sh. 284 billion, and total deposits of over Sh. 380 billion. ““A growing leverage on digital platforms has seen the bank successfully move over 90 per cent of all customer transactions to alternative channels, with over five million customers registered,” the bank said in a statement. Coop Bank 2020 Results.
