Co-op Bank Nine Months Profit: The Co-operative Bank Group has reported a net profit of Sh. 9.77 billion for the first nine months of the year. This comes amidst the ravaging coronavirus pandemic that battled the economy and shrunk profitability.
This net profit was a 10 per cent decline. The decline was attributed to an increase in loan loss provisioning due to the economic impact of the coronavirus.
According to Co-op Bank chief executive officer Gideon Muriuki, the rise in loan provisions was in tandem to the challenges that businesses and households have been facing in the face of Covid, and the bank’s efforts to support its customers. “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,” Dr. Muriuki said.
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During the period, net interest income rose by 11.8 per cent to Sh. 23.64 billion while lending increased by six per cent to Sh. 284.23 billion. Dr. Muriuki revealed that the bank has so far restructured loans worth Sh. 46 billion. This is equivalent to 16.2 per cent of the loan book.
The bank’s non-interest income dropped by 3.5 per cent to Sh. 213.6 billion. This drop was due to the government’s waiver of charges on transfer of money.
Interestingly, the lender’s subsidiaries recorded improved performance. Co-op Consultancy & Insurance Agency posted a pre-tax profit of Sh. 625 million. This was a growth from Sh. 511.1 million that the agency had earned last year. In the same period, Co-operative Bank of South Sudan reported a profit of Sh. 217.8 million from the Sh. 174.7 million, while Co-op Trust Investment Services posted Sh. 68.7 million pre-tax profit. Co-op Bank Nine Months Profit.