Coop Bank Q1 2021 Results: The Co-operative Bank of Kenya has posted a net profit of Sh. 3.46 billion in the first quarter of the 2021 financial year.
This came as interest income grew during the period. Net interest income expanded by 31 per cent to Sh. 9.8 billion as the bank expanded its loan book. Co-op loan book grew by eight percent or Sh. 22 billion to Sh. 298.2 billion. The bank’s Mco-op Cash platform gave out loans worth Sh. 16.3 billion in the first quarter.
“The Group prudentially increased loan loss provisions to Sh. 2.3 billion in the first quarter of the year in appreciation of the challenges that businesses and households continue to face due to the economic effects of the ongoing pandemic,” Dr. Gideon Muriuki, the chief executive officer, said.
During the period under review, total operating income grew by 15 per cent from Sh. 12.5 billion to Sh. 14.4 billion, highlighting strong earnings from the mainstay business of lending amid the disruptive environment.
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Additionally, customer deposits grew by 16 per cent to Sh. 393.8 billion, mostly being non-interest bearing deposits, giving the lender a rich pool from which to issue credit.
During the period, the lender’s subsidiary Kingdom Bank returned to profitability with pretax profit of Sh. 126.7 million. This against the Sh. 76 million loss it made in the full year ended December 2020.
In the same vein, Co-op Bank’s South Sudan joint venture, returned a monetary loss of Sh. 89.1 million due to hyperinflation accounting on the devaluation of the South Sudanese pound. However, Co-op Consultancy & Insurance Agency posted a Sh. 262.6 million pretax profit on the back of strong penetration of bancassurance business, while Co-op Trust Investment Services posted Sh. 21.3 million pre-tax profit.
“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.