Kingdom Bank Profitability: The Kingdom Bank is anticipating to record a profit of at least Sh. 300 million this financial year. This will be a major turnaround for the bank that has been posting a streak of losses over the past five years.
“Management noted that there had been significant improvement in performance due to association of the subsidiary with Co-operative Bank. Further, management projects that the bank will turn around by 31 December 2021 with projected profit of Sh. 300 million,” a statement by Co-op Holdings, the majority shareholder of Co-op Bank, said.
The profit will also come shortly after the bank was acquired by the Co-operative Bank of Kenya last year. The bank was acquired Co-op Bank in 2020 after a 90 percent stake buyout worth Sh. 1 billion. After the acquisition, Co-op Bank introduced a new management team and rebranded the tier III lender to Kingdom Bank. Anthony Mburu was appointed as the new CEO of the rebranded bank in the series of changes that also saw a new board of directors appointed.
Kingdom Bank has already posted a net profit of Sh. 126 million in the three months the current financial year ended March. In the quarter closing on March 31, Kingdom booked a Sh. 126.7 million net profit climbing from a Sh. 200.9 million net loss in the full year ending in December 2020, the first disclosed annual results since 2017. In full year 2020, the lender slashed it losses to Sh. 169 million from Sh. 1.2 billion loss it had posted in 2019.
Co-op Bank nets Sh. 3.46 billion profit in first three months of 2021
Following the acquisition and improved performance, Kingdom is now compliant with all CBK capital and liquidity ratios. It had Sh. 1.15 billion core capital and a liquidity ratio of 387 percent in March. The improved performance by Kingdom Bank is now set to boost the annual profitability of the whole Co-op bank Group.
