Co-op Bank Half Year Results: The Co-operative Bank Group has reported a half year net profit of Sh. 7.4 billion. This came as the bank recorded a gross profit of Sh. 10.5 billion from the Sh. 9.6 billion recorded in the second quarter of 2020. The net profit realized by the bank was a jump from the 7.2 billion reported in second quarter of 2020.
During the period under review, the bank’s total assets grew by Sh. 59.1 billion to Sh. 573 billion compared to Sh. 513.9 billion in the same period last year. Net loans and advances grew by Sh. 29 billion from Sh. 272.2 billion to Sh.. 301.2 billion. At the same time, investment in government securities grew by Sh. 59.6 billion to Sh. 182 billion compared to Sh. 122.4 billion in 2020. The bank also recorded an increase in customer deposits from Sh. 384.6 billion to Sh. 407.7 billion.
Total non-interest income grew by 24 per cent from Sh. 8.3 billion to Sh. 10.3 billion, while net interest income grew by 18 per cent from Sh. 15.9 billion to Sh. 18.8 billion. Total operating expenses increased by 28 per cent from Sh. 14.6 billion to Sh. 18.7 billion on account of 123 per cent prudential growth in loan-loss provisions.
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According to Chief executive officer Dr. Gideon Muriuki, credit management remained a key focus area for the bank. Dr. Muriuki said that the bank was running a credit risk adaptation project dubbed ‘Project Kilele’.
“The Group prudentially increased loan loss provisions to Sh. 4.2 billion in the second quarter of year 2021, in appreciation of the challenges that businesses and households continue to face due to the economic effects of the ongoing pandemic,” he said. “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.”
A total of Sh. 49 Billion in loans was restructured by the bank during the CBK restructure window that ended on 31st March 2021 to support customers impacted by the pandemic. “Our restructured facilities are largely performing as per the realigned agreements. Our customers continue to show resilience therefore improving their repayment as the economy picks up in various sectors,” said Dr. Muriuki.