The Co-operative Bank of Kenya has posted Sh. 11.6 billion net profit for the first nine months of the year. This came after the bank recorded an impressive gross profit of Sh. 16.5 billion, which was a 20 per cent growth from the gross of Sh. 13.8 billion the bank recorded in the same period the previous year.
During the nine month 2021 period, total assets grew by Sh. 82 billion to Sh. 592.9 billion compared to Sh. 510.9 billion in the same period last year. This was equivalent to a growth of 16 per cent. At the same time, net loans and advances book grew by Sh. 22.1 billion from Sh.284.2 billion to Sh. 306.3 billion. Customer deposits grew by 12 per cent from Sh. 375.5 billion to Sh. 420.4 billion.
“Borrowed funds grew by 67.6 per cent which was Sh. 17.7 billion to Sh. 43.8 billion from Sh. 26.2 billion in 2020. Shareholders’ funds on the other hand grew to Sh. 95 billion from Sh. 82.0 billion in 2020 enabling us to continue pitching for big ticket deals,” said Co-op Bank in a statement.
During the period under review, total operating income grew by 19.2 per cent from Sh. 37.2 billion to Sh. 44.4 billion. Total non-interest income grew by 15.6 per cent from Sh. 13.6 billion to Sh. 15.7 billion. Net interest income grew by 21.3 per cent from Sh. 23.6 billion to Sh. 28.7 billion.
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In the third quarter of year 2021, the bank increased loan loss provisions to Sh. 6.0 billion in appreciation of the challenges that businesses and households continue to face due to the effects of the ongoing pandemic. According to chief executive officer Dr. Gideon Muriuki, the bank continues to execute a proactive mitigation strategy anchored on a strong enterprise risk management framework, to enable uninterrupted access to banking services.
“We shall, riding on the unique synergies in the over 15 million-member co-operative movement that is the largest in Africa, continue to pursue strategic initiatives that focus on resilience and growth in the various sectors as the economy continues to recover,” he said.
